I own 85 % of a company that owns a premises. The mortage is in the company name, but guaranteed /underwritten by me. I now want to remortgage the premises, but the owner of the other 15% shares, while in agreement to remortgage, is not in a position to sign anything (dont ask).
Can I go ahead and remortgage in a) the company name without his sign off, or b) my own name, when the company owns the premises?
Would you consider buying the property off the company so you own the property personally and rent it to the company? This is a frequently-used legal device to extract money from a company.
Dont think that is great advice stuart. There are many advantages in keeping a company property in a directors name. Pension Mortgages? Rental income from the company? loads of other sound reasons.
There is a whole host of great reasons for a director owning a property used by their company
The point I raised above was in relation to transfering it to their own name from the company
This is a very complicated area, not as simple as conveying the property
There are very specific areas of legislation that relate to the transfer of company assets to related parties, that can put the majority of the issues you raised out of reach
e.g. Why would the company sell a property to the directors, pay CGT and then rent it back? How is this to its own advantage?
And there is the cost of stamp duty at 9% to be considered, as well as any CGT on the profit of the sale