commercial mortgage

Y

yob

Registered User
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118
good evening all,will be purchasing comercial property through my co.
loking for best and most tax efficant way to purchase.
thinking on the lines of a pension mortgage as been the the most suitable,as already have pension set up and would just pay interest on loan,which would suit me.
i remember a note being made before about buying the property in ones name and then renting to the company,or something on those lines if anyone can advise.
not sure if further info is required,so i 'll leave it at that for the moment,
obviously i have'nt spoke to my accountant yet.
 
Re: comercial mortgage

If your circumstances are suitable, it can make sense to buy the property personally and charge rent equal to the amount of interest you're paying on the interest-only mortgage. Company makes contributions to your pension plan, sufficient to generate a lump sum big enough to pay off the original loan at retirement. Advantages - no personal tax on rent - interest can be written off against incoming rent. So effectively, company is paying the interest. Company is making pension contributions which are over and above your salary, so effectively company is also paying for the original capital. But you'll own the property personally at retirement.

Several possible disadvantages. Primary one - No guarantee that pension policy will generate a sufficiently large sum at retirement to pay off the original loan.
 
Re: comercial mortgage

Thanks for your reply ldferguson,i see where your coming from,and why it makes sense to purchase personally,i appreciate your time,i knew there was something just couldn't remember,cheers,yob.
 
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