Post by Mike on Sept 5, 2017 9:30:41 GMT
Here's the situation:
An individual has no legal interest in property (so they can use gvt. help to buy)
They own a company, and have reasonably cash to hand (6 figures)
They live in London, and will do for another 5+ years. They're soon to be married, and unlikely to have any sprogs for another couple of years.
Here's the idea:
Lend surplus cash after utilising 7.5% divi allowance to another ltd co., and also personally loan some £ too (which would alleviate the current situation of having too much in p2p)
The newco would BTL in the North (Manchester/Leeds/Preston/Newcastle/etc.) with a view to repaying the loans and selling some property in about 4 years time (as needed).
Here's the rationale:
The Rental Yield:Property Price ratio is so disparate, that buying in the North and letting there while renting here in London seems better value.
It gives us exposure to property prices (esp. in the North)
Since it's likely we will leave London in 5 years, this would mean we'd be effectively buying at current prices and hedging any changes between now & moving North.
The question:
Does this make sense? Or is it a stupid idea
Sorry for the shameless request for advice
An individual has no legal interest in property (so they can use gvt. help to buy)
They own a company, and have reasonably cash to hand (6 figures)
They live in London, and will do for another 5+ years. They're soon to be married, and unlikely to have any sprogs for another couple of years.
Here's the idea:
Lend surplus cash after utilising 7.5% divi allowance to another ltd co., and also personally loan some £ too (which would alleviate the current situation of having too much in p2p)
The newco would BTL in the North (Manchester/Leeds/Preston/Newcastle/etc.) with a view to repaying the loans and selling some property in about 4 years time (as needed).
Here's the rationale:
The Rental Yield:Property Price ratio is so disparate, that buying in the North and letting there while renting here in London seems better value.
It gives us exposure to property prices (esp. in the North)
Since it's likely we will leave London in 5 years, this would mean we'd be effectively buying at current prices and hedging any changes between now & moving North.
The question:
Does this make sense? Or is it a stupid idea
Sorry for the shameless request for advice
