Just what i needed to know. i have one buy to let, buying a 2nd and accountant told me best to buy as LTD broker said not LTD. after watching this, not ready for LTD company yet
Clear video, thanks. Do lenders tend to treat LLPs more like LTD companies or like personal investments? Are there any other considerations with LLPs that are important to know?
the most impoertant point to consider about LLPs is that many more lenders dont like them or lend to them, compared to a Ltd Co.. if you want to shrink the choice of lenders availalble to either Ltd Co's or individuals, LLP's hit the spot. Whatever tax advantages you think you are gaiining by using them will be eaten up buy higger mortgage costs, at least in part.
@@KevinWrightProperty Thank you, that's good to know. In fact we are new investors and plan to speak to an accountant. Initial research LLP ticked some boxes namely limited liability but without the overhead of incorporating. Glad I asked. I know some investors are using them for other reasons.
@@MrDatimms I would be very surprised if the cost savings of not incorporating were obliterated by the higher mortgage costs of using an LLP structure due to the reduced availability of mortgage products and thus higher rates charged. Another point ot check with your accountant is the availability of writing off your mortgage interest payments as a business expense. You can do this as a Ltd Co but not as an individual. As LLPs are union of individuals, not being able to claim mortgage interest as a business expense is another cost escalation.
As always Serge, it can vary according to your level of experience and what is on offer from lenders at any given time. Rates oscillate according to how much lenders want to pull in business. Right now they are putting them up to choke off demand. As a very, very rough benchmark 3% ish
If I buy a property through a limited company and that too on cash. And the property will be on company name. Do i still need to pay dividend tax?. Or just the coporate tax?. Thnx
I am not an accountant, questions on tax should always be directed to a qualified accountant. This video deals with the mortgage borrowing implications of buying with a Ltd Co, not the tax implications - because I have spent over 20 years brokering all sorts of property finance. Ask an accountant to get the answers you seek. Thanks
Absolutely brilliant guy and excellent advice TH-cam is terrible by the fact Kevin’s channel isn’t huge by now
your enthusiastic support is greatly appreciated. Spread the word Scott, spread the word and help me build it
your video is the first I've watched which explains it so I understood it, thanks.
great, glad I was able to clear it up for you
Many thanks Kevin, helpful as always
you are most welcome
Just what i needed to know. i have one buy to let, buying a 2nd and accountant told me best to buy as LTD broker said not LTD. after watching this, not ready for LTD company yet
Great that this video helped to clarify your thinking Matt
Clear video, thanks. Do lenders tend to treat LLPs more like LTD companies or like personal investments? Are there any other considerations with LLPs that are important to know?
the most impoertant point to consider about LLPs is that many more lenders dont like them or lend to them, compared to a Ltd Co.. if you want to shrink the choice of lenders availalble to either Ltd Co's or individuals, LLP's hit the spot. Whatever tax advantages you think you are gaiining by using them will be eaten up buy higger mortgage costs, at least in part.
@@KevinWrightProperty Thank you, that's good to know. In fact we are new investors and plan to speak to an accountant. Initial research LLP ticked some boxes namely limited liability but without the overhead of incorporating. Glad I asked. I know some investors are using them for other reasons.
@@MrDatimms I would be very surprised if the cost savings of not incorporating were obliterated by the higher mortgage costs of using an LLP structure due to the reduced availability of mortgage products and thus higher rates charged.
Another point ot check with your accountant is the availability of writing off your mortgage interest payments as a business expense. You can do this as a Ltd Co but not as an individual. As LLPs are union of individuals, not being able to claim mortgage interest as a business expense is another cost escalation.
Excellent as always Kevin.
First comment. Yay.
thank you very much Matthew
Hi Kevin. Is it a problem if the limited company has 2 directors with 50/50 share holding?
Thanks Andy
no problem at all Andy
Hi, Kevin,
What’s sort of interest rates are we talking for ltd’s roughly speaking ?
Thanks as always
Serg
As always Serge, it can vary according to your level of experience and what is on offer from lenders at any given time. Rates oscillate according to how much lenders want to pull in business. Right now they are putting them up to choke off demand. As a very, very rough benchmark 3% ish
Thanks Kevin. Much appreciated. Have a lovely weekend ahead.
@@calibrehiring9620 - welcome Serge
@@KevinWrightProperty so they're around 1 percent higher than normal personal-name BTL mortgages, right?
@@n.s.5278 - broadly speaking
If I buy a property through a limited company and that too on cash. And the property will be on company name. Do i still need to pay dividend tax?. Or just the coporate tax?. Thnx
I am not an accountant, questions on tax should always be directed to a qualified accountant. This video deals with the mortgage borrowing implications of buying with a Ltd Co, not the tax implications - because I have spent over 20 years brokering all sorts of property finance. Ask an accountant to get the answers you seek. Thanks
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glad you found it useful Nabaz