darwinsfoot
22-01-2006, 21:57 PM
I am sorry to go over old ground here, and I have read the previous posts, but was just wondering if any of you could clarify something for me. There are a few posts talking about changing from personal ownership to limited company ownership for their rental properties. One response really stuck out as it is relevent to my situation. The response basically said that for buy-to-let properties he would purchase them in his own name but for renovations he would buy them through the company. I am just wondering what the benefits are for each? I know people say horses for courses but can anyone define a bit more precisely which horses are suited to which courses?
My situation is that I have been renovating properties over the last few years all in my own name (though with financial backing from a family member). We want to continue to do this but also to branch out to buy-to-let. We have recently started a company to channel all our activities into (as we currently do not have any properties this isn't going to be hard!) as we thought it might be easier to just keep everything in one entity.
At least one part of the reasons for starting the company was that my partner (the family member), who in effect is the financial backer, wants to be able to leave my siblings shares in the company and thought it would be easier to sort through a company, rather than financially backing me, and then relying on me to divvy up the portfolio on his demise.
Sorry if any of this is confused. The main points I was hoping for some clarification with are:
1. What are the main pros and cons for developing and buy-to-let activity if done from a limited company? And;
2. Same question as above but for private persons.
Any help would be greatly appreciated.
My situation is that I have been renovating properties over the last few years all in my own name (though with financial backing from a family member). We want to continue to do this but also to branch out to buy-to-let. We have recently started a company to channel all our activities into (as we currently do not have any properties this isn't going to be hard!) as we thought it might be easier to just keep everything in one entity.
At least one part of the reasons for starting the company was that my partner (the family member), who in effect is the financial backer, wants to be able to leave my siblings shares in the company and thought it would be easier to sort through a company, rather than financially backing me, and then relying on me to divvy up the portfolio on his demise.
Sorry if any of this is confused. The main points I was hoping for some clarification with are:
1. What are the main pros and cons for developing and buy-to-let activity if done from a limited company? And;
2. Same question as above but for private persons.
Any help would be greatly appreciated.