Ltd Co - Purchase residential property for use in business

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    Ltd Co - Purchase residential property for use in business

    Hello,

    I’m a business owner and would like to purchase a residential property for use in the business, I want it to be as flexible as possible, it is unlikely to be rented out but instead used by employees and third parties when required.

    Not sure what is the best way to do this?

    Thanks in advance

    #2
    Looks like standard owner occupied commercial finance will do.

    Comment


      #3
      I am assuming that you are ideally seeking mortgage finance to facilitate the purchase?

      As the business is your own and used as you state to accommodate employees and third parties this would fall outside the Buy to Let sector and becomes a proposition which needs discussing with your bank. As a corporate Buy to Let would require an undertaking to let the property on a minimum of 6 months tenancy , this would not be possible as you state it is unlikely to be rented. Your next obstacle is that if you are going to have several persons occupying the property you would need to possibly have it classified as an HMO and if there is more than four persons it could well indeed necessitate a mandatory HMO license and all that it involves.

      Go and speak with your bank manager in the first instance or if you have sufficient capital buy the property outright but you will still need to check the property licensing situation.

      Comment


        #4
        Apart from the mortgage financing issue -- I cannot see how the OP is in a different position to any other potential landlord. He needs to be very very careful not to create an AST - and if he wants folk to say over and potentially pay for more than a few days at a time, it creates a risk.

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