Hi there
I set up my company 10 years ago this year and up until now have rented offices - 4-9 in the first place and coming to the end of 4-9 in the current place.
As I'm now at the end of the second 4-9, I want to explore the purchase option. I'd love to be in a position to purchase offices personally and lease them back to the company, but unfortunately personal circumstances dictate otherwise.
I therefore have some (probably rather naive) questions regarding the company purchasing the offices:
Firstly, Taxation. Is stamp duty payable? Likewise VAT ? If so, is the VAT reclaimable (presumably not and only on goods for resale) ? Is there any advantage having a shell company purchasing the property and leasing it ?
Secondly, Financing. The company will need a mortgage. We have been with the same bank (NIB) for the last 10 years but we've had no relationship with them. We've never had an overdraft / borrowings so we never got to know them at all. Presumably they should be my first port of call for a mortgage. What should I do - arrange an initial chat and bring along a set of our last audited accounts ? On what basis are they likely to offer a mortgage (i.e. you know the way for personal mortgages the banks supposedly use 3.5 times gross income) ? What is the max % they will offer ? What sort of term ? Will they want a committment from me signed in blood ?
I'd be grateful if some of you people could offer any insights on this.
Thanks
Podge
I set up my company 10 years ago this year and up until now have rented offices - 4-9 in the first place and coming to the end of 4-9 in the current place.
As I'm now at the end of the second 4-9, I want to explore the purchase option. I'd love to be in a position to purchase offices personally and lease them back to the company, but unfortunately personal circumstances dictate otherwise.
I therefore have some (probably rather naive) questions regarding the company purchasing the offices:
Firstly, Taxation. Is stamp duty payable? Likewise VAT ? If so, is the VAT reclaimable (presumably not and only on goods for resale) ? Is there any advantage having a shell company purchasing the property and leasing it ?
Secondly, Financing. The company will need a mortgage. We have been with the same bank (NIB) for the last 10 years but we've had no relationship with them. We've never had an overdraft / borrowings so we never got to know them at all. Presumably they should be my first port of call for a mortgage. What should I do - arrange an initial chat and bring along a set of our last audited accounts ? On what basis are they likely to offer a mortgage (i.e. you know the way for personal mortgages the banks supposedly use 3.5 times gross income) ? What is the max % they will offer ? What sort of term ? Will they want a committment from me signed in blood ?
I'd be grateful if some of you people could offer any insights on this.
Thanks
Podge