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Jamie-Law
Jamie-Law, Solicitor
Category: Property Law
Satisfied Customers: 5571
Experience:  Solicitor
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Can property sit 'outside' the Ltd company (as it is at

Resolved Question:

Can property sit 'outside' the Ltd company (as it is at present) but the company receive the income and pay mortgage
Submitted: 27 days ago.
Category: Property Law
Expert:  Jamie-Law replied 27 days ago.

Hello my name is ***** ***** I will help you with this.

I am not quite with you? Are you getting payments from your Ltd co?

Customer: replied 27 days ago.
Hello Jamie, we are talking about: investment property owned privately but let through director's limited company
Thanks,
Art
Expert:  Jamie-Law replied 27 days ago.

Ok. But are you getting any payment from the Ltd co?

Customer: replied 27 days ago.
Not at the moment but I am planning to
Customer: replied 27 days ago.
I would like to let my property to my own property managing company so then company can let it to tenants
Customer: replied 27 days ago.
Rent will be paid by tenants to my Ltd and mortgage payments will be paid by my Ltd
The Ltd then will have to pay corporation tax from profit
I could get payments from Ltd in form of dividend
Can I structure it this way or not?
Expert:  Jamie-Law replied 27 days ago.

Have you a formal written lease between Ltd and you?

Customer: replied 27 days ago.
Not yet
Expert:  Jamie-Law replied 27 days ago.

Ok. I dont think you can do this.

You can lease it from you to the Ltd company, but then HMRC would want to see that proper market rate is being paid by Ltd company to you.

The Ltd Co can not also pay the mortgage provider, they have no contract. The contract is between you and the mortgage co.

So I think you will be in some difficulty.

You need to either have the Ltd co own and have the mortgage, or you personally.

Can I clarify anything for you about this today please?

If not, I would appreciate a 5 star rating for my answer. Thanks!

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