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Solicitor4All
Solicitor4All, Solicitor
Category: Law
Satisfied Customers: 7837
Experience:  Director and Principal Solicitor. UK
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I bought a property in March 21 that needed total

Customer Question

Hi,
I bought a property in March 21 that needed total renovation. I've just finished it and have caught the bug. I'm trying to decide the next step. I'd like to do the same with a similar property, and rent this property as a holiday let, which I've been advised could earn 20k a year profit with a high end agency.
I'm trying to work out the best way to buy another property (which I would live in and renovate). I don't have a mortgage on this property. I live in South Wales, Porthcawl.
Is becoming a Limited Company with properties the best way to do this? I may want to do it again in the future
Submitted: 17 days ago.
Category: Law
Expert:  Solicitor4All replied 17 days ago.

A very good day to you there, how do you do?

Expert:  Solicitor4All replied 17 days ago.

My name is Solicitor4All a law expert with over 15years practice. I will be helping you today. Thank you for the inquiry.

Expert:  Solicitor4All replied 17 days ago.

First of all, I am sorry to hear about the issues brought up by this. It must be a frustrating situation to be going through Please leave the inquiry with me and i will prepare a response for you here this afternoon. Thank you.

Expert:  Solicitor4All replied 17 days ago.
Thank you for your patience. Limited company would d protect you from personal tax and you pay corporation tax , however you will not be able to get relief when you decide to sell that property as you cannot class it as your own main home as it belongs to the company. If you are looking to build a property portfolio and not just these two then limited company will save you on tax.
Expert:  Solicitor4All replied 17 days ago.

Any follow up please do not hesitate to send me your message and I will be glad to assist you further,

Customer: replied 17 days ago.
Thanks How do I go about releasing equity on my current property in order to buy the new property?
Customer: replied 17 days ago.
Also what do you mean by I wouldn’t be able to get relief when I sell it? What does relief mean please?
Expert:  Solicitor4All replied 16 days ago.
Thank you for your patience you could take a mortgage on the first property to use towards you’re second. 

When you sell main residence you can get an exemption to some of the cgt and that is the main residence relief.

Customer: replied 16 days ago.
I’m looking for advice on a let to buy mortgage though - I want to keep my house and rent it out
Expert:  Solicitor4All replied 16 days ago.

Which priority are you wanting to make a holiday let? The one you just finished work on or the one you are starting to renovate? And do you mean buy to let?

Customer: replied 16 days ago.
I want to let the one I’ve just finished- buy the other one and do it up as I live in it. The advisor I had before said I needed a mortgage to enable me to let this property and buy the other one
Expert:  Solicitor4All replied 16 days ago.

Hi, you need a financial adviser or broker to look into the mortgages available because if the house you finished is mortgage free and you want to let it but you need to extract money from it in order to work on this new project then the ordinary thing is for you to release some of the equity in your house that is mortgage free and you do that by taking out a mortgage on it. Where and how is a job for mortgage brokers and financial advisers.

Customer: replied 15 days ago.
Thanks
Expert:  Solicitor4All replied 15 days ago.

Thank you for the positive feedback. I am delighted that you are satisfied with my reply and wish you all the very best in resolving this matter.

Customer: replied 15 days ago.
Thank you, ***** *****
Expert:  Solicitor4All replied 15 days ago.

Cheers!