Updating post from Reddit.
I own a property management company and currently private rent a house personally through an estate agent and would like to get your opinions on if I were to buy it from the landlord through my company and continue to live in it whilst I renovate it to eventually sell it.
I also have a full time job that pays me an annual salary so this is the source of funds to pay the rent, utility bills etc...
I would pay the rent personally to my LTD company, and use the LTD company funds to renovate the property and eventually sell it.
What issues could you foresee with doing this?
You are going to have a hard time if you require a mortgage. I'm not going to say its impossible but their is no off the shelf mortgages, for a trading limited company that you are going to live in, especialy in addition to renovating.
The standard way for you to do it would be for you to get a 'Regulated Bridge' in your personal name, to buy the property. Renovate it and sell it.
If you dont plan on selling it immediatly, a normal mortgage could do. However the property would have to be in good liveable condition. A standard mortgage typicaly prohibits significant changes, such as structural.
Now this may have some effect on your personal taxation, when you come to sell. However you would also benefit from First TIme Buyer Stamp Duty Discount (if it still exist, by time you complete. New Budget in a few days so we dont know).
A Mortgage Adviser could help you explore options. Such as if your 'company' can loan you the funds for deposit and renovations.
None really its just a company
The rent is profit, the expenditure is doing it up etc at the end the company has profit
Just set up an spv Ltd. Its easy. Dont buy through a trading company.