Property base price for book value

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    Property base price for book value

    Hi, I am looking at buying a small piece of land for B1 commercial property development. If I buy the land for say £100K through a property company and then lend the Co £500K to build out the development would the base value of the property in the company now be £600K if and when the property is sold? All responses appreciated...

    I think your question should be best answered by an accountant because "book value" was usually applied to cost of a property asset purchased by an investment company and recorded in the balance sheet of its accounts . But nowadays, the accounting standards require assets to be shown at the market value on 31st Dec 2016.( on whatever is the company year end date ) .

    For your "development" company, the accounts would show £600K as director's loans and the new property as "stock at cost"

    ( I am not an accountant so my comments may not be correct ).


      Thank you Gordon999


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