Brendan Burgess
Founder
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But that is not getting it out? That is making it worse. You will have to sell the BTL , pay CGT in the company. and then pay 55% on the net amount taken out.
i was going to let it build up and then perhaps buy another BTL in a few years ..
even with a lovestruck lender, viewing you from a distance, in the dusk, with the light behind you, you're not going to look like someone to whom a 330k mortgage should be extended.
I'm totally lost. Is your company salary 70k or 35K?my Income on my p60 is 70k
i could increase my salary from ltd company from 35k to
Me too. The information seems to keep changing or being added to in dribs and drabs...I'm totally lost.
My P60 is 70k'm totally lost. Is your company salary 70k or 35K?
Me too. The information seems to keep changing or being added to in dribs and drabs...
That's not your P60. The term (obsolete in Ireland since 2019, still in vogue in the UK) refers exclusively to salary/wage income taxed under the PAYE system.My P60 is 70k
made up from 35k company income
PLUS
35k rental income
TOTAL 70k
For what it's worth from another thread:and also take into account rental income from an unencumbered property
As far as I know even if a lender factors in rental income they won't factor in 100% of it.It depends on the bank. Bank of Ireland has a does not take rental income into account, while I believe AIB will.
Please take some time to carefully read my earlier posts trying to clarify confusing/conflicting information that you posted.nothing has changed or been added to or dribs and drabs pls take some time to carefully read what i wrote
Nobody here is under any obligation to help you and a little gratitude wouldn't go amiss.pls take some time to carefully read what i wrote
my original question is Are there any banks that take into account retained profits
Unlikely, as they don't belong to you
Yes, see my previous post.and rental income as part of a affordability calculation
The €32k is being taken into account.you are not talking into account my income from my ltd company....
The answer is still nomy original question is Are there any banks that take into account retained profits and rental income as part of a affordability calculation
I own a rental property that’s fully paid off (valued around €330k) and generates €2k per month in rent.
this is the basis for my questions about retained profitsOP needs to realise that the company in which they own all the share capital is a distinct legal entity from themselves.
thanks for that i was wondering if i could reportage my BTL and go that way ill think about this more . .thank youthink that some of the new lenders will give you a mortgage on your buy to let. ICS for example.
will do thanksBut as with Tommy's earlier suggestion, a broker would guide you better on this issue.
ICS and Nua money doThe answer is still no
i give upThe €32k is being taken into account.
yes correct i am employee from my ltd companyThat's not your P60. The term (obsolete in Ireland since 2019, still in vogue in the UK) refers exclusively to salary/wage income taxed under the PAYE system.
Just to clarify, is either of your current rental properties owned through your company?i was going to let it build up and then perhaps buy another BTL in a few years
possibly but there is 4300 a month arriving into my current account .. (2300 salary from company and 2000 from rent )But beyond that, I think you need to change your attitude on tax. We all want to minimise the tax we pay but not to the point where it limits what you want to achieve personally/financially.
no they will not clear the mortgageFor the jointly owned property, who is your co-owner and have they the means to clear the mortgage? If they do, you should just take the hit and take the €45-50k net from your company. As you would no longer be jointly and severely liable, it increases your personal borrowing capacity by €95k for a net cost to you of half that amount
house is main asset .. cash divided up with my siblings and grandkidsIs the house the entirety of your father's estate? Is there cash or other assets to be distributed that can be used to reduce the €400k you need to pay off your siblings
yes i increase salary btw its not really 65k there is paye,tax , corporation tax, business expenses(minimal) prob round 50k it just sitting in current account i was thinking about buying another BTL in a few years if it keeps on growingYou obviously need to increase your salary from your company but once everything settles you can revert back to your current practice. What currently happens to the €65k? Are you funding a pension with this
NoJust to clarify, is either of your current rental properties owned through your company?
What currently happens to the €65k?
What €65K?yes i increase salary btw its not really 65k
What currently happens to the €65k?
What €65K?yes i increase salary btw its not really 65k there is paye,tax , corporation tax, business expenses(minimal) prob round 50k it just sitting in current account i was thinking about buying another BTL in a few years if it keeps on growing
But then how is there "PAYE, tax" on that if it's retained in the company? And how/why does €65K become €50K? And if it's €50K then mention €65K at all....?salary of 35k from my ltd company
(company takes in 100k plus a year i just take out 35k) ( company would retain profits )
What currently happens to the €65k?
What €65K?yes i increase salary btw its not really 65k there is paye,tax , corporation tax, business expenses(minimal) prob round 50k it just sitting in current account i was thinking about buying another BTL in a few years if it keeps on growing
But then how is there "PAYE, tax" on that if it's retained in the company? And how/why does €65K become €50K? And if it's €50K then why mention €65K at all....?salary of 35k from my ltd company
(company takes in 100k plus a year i just take out 35k) ( company would retain profits )
If I'm reading this correctly
I must say, I did not read it like that at all, but I may have misunderstood.
Like others, I have found this thread a confusing read
That is great for you that you live comfortably within your means but it is not what the bank is interested in.possibly but there is 4300 a month arriving into my current account .. (2300 salary from company and 2000 from rent )
i find this well more than i need to live on
my question was would a bank look at annual retained profits and have the cop on to see why im only taking 35k
You've answered your own question. The bank has the cop on to realise that as long as you keep it in the company then you can do anything you want with it that is not in their interest and adds to their risk. Why would they do this?i was thinking about buying another BTL in a few years if it keeps on growing
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