How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask Buachaill Your Own Question

Buachaill
Buachaill, Barrister
Category: Property Law
Satisfied Customers: 10188
Experience:  Barrister 17 years experience
53108719
Type Your Property Law Question Here...
Buachaill is online now

Can I buy a house under personal name and receive rent from

Customer Question

Can I buy a house under personal name and receive rent from a limited company I set up?
Submitted: 14 days ago.
Category: Property Law
Expert:  Buachaill replied 14 days ago.

1. Yes, it is perfectly permissible to purchase a property in a personal name and to have a company of which you are shareholder pay you rent. The law does not prevent this occurring. However, you should ensure the rent is the open market rent and does not exceed the market rent, as otherwise you could run into trouble if you paid yourself an excessive rent. However, it is lawful to have a limited company of which you are shareholder pay you rent for a property rented. The company should occupy or lease the property. Here, I would recommend you draw up a written lease to document the transaction.

Expert:  Buachaill replied 14 days ago.

2. Please rate or accept the answer as unless you do so your Expert will not receive payment from the website for answering your question.

Customer: replied 14 days ago.
Is the open market rent an issue? For example. a management company charge my tenants 3520 pounds a month for a 5 bedroom house deducts 1720 pounds (marketing fees, management fees, electric and gas bills, council tax, cleaning fees) for each month, leaving me 1800 pounds a month. Is this open Market rent? If so, I can set up a management company to do the same for my own properties.
Expert:  Buachaill replied 14 days ago.

3. The open market rent is an issue because there are anti-avoidance measures for companies which prevent the amount of the rent which is deductible in law from company profits exceeding what is the open market rent. There is no difficulty with a management company charging appropriate fees. However, again, there are anti-avoidance measures which prevent the level of deductible expenses exceeding what would be available if the services were contracted for, in the open market. The idea behind the legislation is that there should not be abusive deductions from company profits which exceed what the market would charge.

Customer: replied 13 days ago.
Thank you. I just noticed you said I should lease the property to the company. However, I found in the mortgage policy that the property cannot be lease to a company for sub-let. It can only be let to a company for its employees. If that's case, can I just use the company as the managing agent for the property. For example, the rent charged from the tenants is 3500 pounds a month, the company will pay 1800 pounds to me monthly. The rest will pay for bills and council tax, as well as the managing agency fees?
Expert:  Buachaill replied 13 days ago.

4. You can certainly use the company as the managing agent. There is nothing to prevent this and you can earn a proportion of the monies charged in rent.

What Customers are Saying:

 
 
 
  • Thank you so much for your help. Your answers were really useful and came back so quickly. Great! Maggie
< Previous | Next >
  • Thank you so much for your help. Your answers were really useful and came back so quickly. Great! Maggie
  • A quick response, a succinct and helpful answer in simple English. I believe I can now confront the counter party with confidence -- worth the 30 bucks! Rick
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP
  • I couldn't be more satisfied! This is the site I will always come to when I need a second opinion. Justin
  • Just let me say that this encounter has been entirely professional and most helpful. I liked that I could ask additional questions and get answered in a very short turn around. Esther
 
 
 

Meet The Experts:

 
 
 
  • Remus2004

    Remus2004

    Barrister

    Satisfied Customers:

    2427
    Over 5 years in practice.
< Last | Next >
  • http://ww2.justanswer.com/uploads/EM/emus/2015-7-7_192327_bigstockportraitofconfidentfemale.64x64.jpg Remus2004's Avatar

    Remus2004

    Barrister

    Satisfied Customers:

    2427
    Over 5 years in practice.
  • http://ww2.justanswer.com/uploads/TG/TGraham12/2012-7-17_81212_bigstockBusinessHandshake508163.64x64.jpg Thomas's Avatar

    Thomas

    Solicitor

    Satisfied Customers:

    414
    UK solicitor holding an England and Wales practising Certificate.
  • http://ww2.justanswer.com/uploads/KA/Kasare/kasare.64x64.jpg Kasare's Avatar

    Kasare

    Solicitor

    Satisfied Customers:

    42
    Solicitor, 10 yrs plus experience in civil litigation, employment and family law.
  • http://ww2.justanswer.com/uploads/OS/osh/2015-7-7_19268_gettyimagesb.64x64.jpg Joshua's Avatar

    Joshua

    Lawyer

    Satisfied Customers:

    4708
    LL.B (Hons), Higher Prof. Dip. Law & Practice
  • http://ww2.justanswer.com/uploads/AS/Aston Lawyer/2013-10-8_19517_JAPROFILEPICTURE.64x64.jpg Aston Lawyer's Avatar

    Aston Lawyer

    Solicitor

    Satisfied Customers:

    1823
    LLB(HONS) 20 years of experience in dealing with Conveyancing and Property Law
  • http://ww2.justanswer.com/uploads/CH/chathamchamber/2011-4-24_191833_1.64x64.jpg chatham-chamber's Avatar

    chatham-chamber

    Solicitor

    Satisfied Customers:

    828
    LL.B, Pg.Dip, LL.M, M.B.A (Pending), Solicitor-Advocate. UK Practising Certificate issued by SRA., DIFC Courts Registered (Dubai)
  • http://ww2.justanswer.com/uploads/CL/clairep80/2013-8-25_191218_dreamstimexs267279822nd.64x64.jpg Clare's Avatar

    Clare

    Solicitor

    Satisfied Customers:

    241
    I have been a solicitor in High Street Practise since 1985 with a wide general experience.