Limited company looking to investment property

simonhyett
simonhyett Registered Posts: 4
in General accounting discussion
Hi everyone
I have a client who runs a limited company in the building industry.
They have recently found a property (part residential, part commercial) and had an offer accepted on said property.
They are purchasing the property along with a couple of investors (the limited co will purchase half, investors the other half)
Does anyone reading his have any sort of experience of a similar scenario, and if so, what sort of structure was used following the transaction? I believe the end goal is to renovate the property with a view to rental.

Comments

  • laddi2010
    laddi2010 Registered Posts: 8 New contributor 🐸
    I believe the property is being bough on cash basis. As I do not think bank will lend as there are limit of person on deed register when applying for mortgage.

    Most clients open a separate company (Special vehicle company SPV) just for purpose of buying, renovating and selling it off.

    You also have to check with HMRC, if your client have to register for CIS, as they will be using subcontractor and CIS need to deducted. I hope it helps.

    S K Punia Accountant

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