UK Landlord Forum / Life

Hey guys,

First of all hello to all, it's my first post on this forum!! I new to property investment, just giving my first steps, so reading all I can and trying to understand the little nuances of the business.

A question I've been trying to have an answer for is if its advised to start renting properties as a private landlord, or create your own ldt company to buy and rent the properties?

Thank you so much for your help, and I hope I can start contributing soon!!!

S.

The idea of incorporating has become quite fashionable recently, in response to the restrictions on tax allowances for mortgage interest, which don't apply to companies - yet! For an existing landlord, any benefits could easily be wiped out by the stamp duty and legal costs incurred when transferring properties from the individual to the company so, from that point of view, it makes sense, if you're going to incorporate, to do so from the outset.

Having said that, I think you might struggle to find a mortgage provider who is prepared to lend to a newly-incorporated company, particularly if it's highly-geared. How much equity would you be able to put into the company at the start?

Have a chat with a mortgage broker: it may well be that any gains from mortgage interest tax relief are eaten up by higher interest costs and the greater regulatory requirements of running a limited company.

I would advise you to speak to an accountant as we were advised not to put property into a Company

Thank you for the answers guys.
So far I wasn't able to find an accountant able to give me proper advice about this subject. I think I'm going to start without a company and see how I manage. If things go well I might think in the company part.

If your accountant cannot provide this sort of advice seek a new accountant.