Contractor wanting to start a buy 2 let side of the company

[pbizzle]

Hello all,

I am a IT contractor in the UK (London) for the past few years.

I have been wanting to start a buy 2 let side to the LTD company, but have a few questions or any advise from you guys that have done the same.

• Is it worth running this as a separate company?

• What is actually involved paperwork wise?

• are there any pitfalls i should look out for?

I should also probably mention that i probably will not need mortgages for these properties, rather just taking company loans from the bank of about 25-35k.

so my last question is, is that the right way to go or is there another way around that?

Cheers guys

[jmo21]

it's been discussed ad infinitum on here

The upshot appears to be it is not worth it to do it through your ltd and you'd be better doing it personally.

[Mulder]

Hello all,

I should also probably mention that i probably will not need mortgages for these properties, rather just taking company loans from the bank of about 25-35k.

so my last question is, is that the right way to go or is there another way around that?

Cheers guys

Tax wise you are better getting a mortgage for the properties.

If you have cash, it might be tempting to pay for a property outright – but that way, you lose the tax relief you would get on mortgage interest. You also lose the leveraging power of your investment.
Instead, most landlords take out interest-only mortgages at a level where the repayments are roughly equal to the net income. “Typically, this is at a loan-to-value of 50-60 per cent. This means a zero tax bill and makes the equity work harder,” says Bosworth.

Avoid a money pit: make a buy-to-let property tax efficient - Telegraph

[northernladuk]

Try the search option. It's been done to death.

[MarillionFan]

Try the search option. It's been done to death.

I typed in Nicolas van Hoogstraten and your name came up.

[northernladuk]

I typed in Nicolas van Hoogstraten and your name came up.

It did? I tried both searches and I wasn't even on the list?

[TheFaQQer]

I typed in Nicolas van Hoogstraten and your name came up.

I tried that, and Google suggested I search for "Nicholas van Hoogstraten" instead.

[Jeebo72]

Hello all,

I am a IT contractor in the UK (London) for the past few years.

I have been wanting to start a buy 2 let side to the LTD company, but have a few questions or any advise from you guys that have done the same.

• Is it worth running this as a separate company?

• What is actually involved paperwork wise?

• are there any pitfalls i should look out for?

I should also probably mention that i probably will not need mortgages for these properties, rather just taking company loans from the bank of about 25-35k.

so my last question is, is that the right way to go or is there another way around that?

Cheers guys

If your company is VAT registered it's better through another company (non VAT), as you cant charge you tenants VAT. This is what myself and another contractor mate have done.

[MarillionFan]

It did? I tried both searches and I wasn't even on the list?

Sorry, I meant I typed Sheriff Fatman and your name came up.

[SimonMac]

I typed in Nicolas van Hoogstraten and your name came up.

Maybe you should have searched for Nicholas instead