An alternative to buying individual properties from a landlord's existing BTL portfolio which are held in a Ltd Company, is to actually buy the Ltd Company itself.
There are different tax considerations doing it this way (always speak in detail with a landlord-focused tax adviser when dealing with matters such as this) and there are also opportunitites to finance these acquisitions using standard BTL mortgage products.
Not all BTL mortgage lenders will provide the funds to help you to transact a business purchase, but we know the lenders who do.
Tax advice is a crucial part of the planning, and the mortgage lenders who can help with Company Share Purchases will want to know the answers to specific questions, including those as follows;
Have you taken taxation advice with regards to potential future CGT liability based against the agreed purchase price for the company, and if so can copies of this tax advice, showing who the tax adviser was, be provided?
Can your accountant confirm how the purchase would proceed and whether the agreed price would have any tax liabilities
Company details of the company shares which you want to purchase.
Details of properties the company to be purchased owns at present including addresses, property types, values, and mortgages
Details of the company they own at present (if any).
Details of the buyers current BTL portfolio including addresses, property types, values and mortgages
Background of the applicants, employment details, incomes, residential ownership, value, and all mortgages.
Purchase price of the shares of the company to be purchased.
Source and proof of deposit.
What are the values of the assets recorded currently on the balance sheet of the company being purchased?
Can the latest years full accounts for the company being purchased be provided?
To fund your next BTL company acquisition, contact us now for the initial Fact Find conversation.
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