In the circumstances where you’ve let out the property, not letting the insurance company know or the lender know would mean that you would have to pay out for any damages, repairs that come out from a fire, Flood, etc. from your own pocket. If you’re not insured, you haven’t covered the property and anybody in there, and then there could be a potentially seen as a criminal offence for not informing insurance companies or the lending bank. So you moved over into the area of insurance. Insurance is surely something to do with the cost and the damages on the property. The value of the property is not going to change. The insurance risk may go up.

It’s important to tell the insurance company you started off by saying you’d be getting new terms, but I’m saying, well, if it was the fact that you would get new terms and you have to get a new rate of lending, why would anybody put their residential property into that predicament where they have to go and find new terms, a new mortgage?

This is usually not ideal for the individuals who have had a regulated mortgage and you managed to get quite a good rate and all of a sudden you’re now letting out the property. The bank may want to go through a different process with you to allow you to do this in terms of what they can allow you to continue the regulated terms which are a lot easier going. Whereas if you do default on the property and weren’t able to pay, they’ve got more rights to be able to take control of the property and the power of sale with the Law of Property Act 1925.

So this is where I think a lot of banks will act slightly differently depending on their approach to this type of thing. Some of them will be quite draconian, some of them be quite easy going. So I think it depends on Bank, really, how they apply.

So are you saying if you own a property that you’re living in, you’re saying that the Law of Property Act 1925 is not contained in the terms and the conditions?

If you’re living in a property, the Law of Property Act 1925 isn’t applicable. It’s applicable if you if it’s a commercial loan and any of those circumstances.

Can a personal property be converted into a limited property or a limited company?

There are various solutions that were drafted or drafted out by the accountant practice that tissue the accountancy fraternity. After the laws changed on taxation on the interest payments, a lot of people, especially larger property portfolio owners, thought to save the interest payments from taxation. So they did go through the process of moving their property portfolios into limited companies. There are various techniques for that. So, yes, a personal property can be moved into a limited company.

But you must remember, a limited company is itself an excuse me, it’s an entity. So if you’re moving a prompt only ship from one entity to another entity, it is a transfer of title, and it does invoke capital gains and also other taxes. So be where you can transfer properties in your personal name to a limited company. But, you know, if you don’t plan correctly, you could get tax for that transfer.

Can you transfer personal property into limited companies?

Yes or no? It’s all possible. There are quite a lot of different tax planning tools that a lot of specialist tax companies use to help people to implement that. So there’s varying ways of doing it. And the biggest issue with actual transparencies around stamp duty, because certain planning approaches actually mean that you’re going to pay stamp duty to be able to transfer them into a new company. But there’s quite a lot of schemes out there that allow you to transfer over without the stamp duty. And they’re doing really well with a lot of BTL landlords.

Do we assist clients who are looking to do this?

We’ve got all the tools and our panel of experts that can actually help move them over.  So that and our expertise that we have in house as well to do an appraisal to see whether the clients.