Bridging Finance | Posted May 11, 2020

Integrated Service Supports Complex Commercial Transaction

A client who operates a property investment business recently approached our partner, Innovation 4 Business, in order to seek advice on transferring their portfolio to a Limited Company.

What were the client’s objectives?

The clients sought advice from Innovation 4 Business on the best way to transfer their whole portfolio to a limited company in order to minimise tax charges, as the changes in legislation that concerned the client did not impact on limited companies.

The clients also needed refinance for their portfolio of investment properties so that they could repay the existing loans and use the remaining capital for other ventures.

The client understood that this was likely to be a complex transaction and was concerned about the time it may have taken, as they needed to ensure that they were not impacted by the changes in legislation and could transfer their portfolio quickly and efficiently without unnecessary stress.

What solutions did we offer?

Offering an integrated and consultative service, we were able to assist the client in a number of ways.

Firstly, our partner Innovation 4 Business was able to provide expert advice, and have recently completed the transfer of the whole portfolio without triggering any tax charges. This resulted in combined savings of £57,040 for the clients from Stamp Duty Land Tax and Capital Gains Tax.

In addition to this, the clients also achieved their aim of having transferred the portfolio to a structure where the company could claim full deduction of mortgage interest against rental profits, which would then be taxed at 19%.

After changing the properties from their personal names to their limited company, the clients needed to repay their existing loans with the objective of using the remaining capital for other ventures. Our expert commercial mortgages team at Finance 4 Business reviewed the client’s needs and their criteria in order to seek the right solutions for their requirements.

We sourced a lender that could provide the clients with their desired outcome and began to proceed with the transaction. 75% LTV across all properties was agreed, and once all requirements had been satisfied, the lender released the funds.

How did we ensure success?

The integrated service provided by both Finance 4 Business and Innovation 4 Business allowed for a streamlined process with optimum communication between businesses. This allowed timescales to be considerably reduced with all businesses understanding the best ways to work together to achieve the client’s goals.

The mass number of requisitions that had taken place meant that there was a lot to work through, however, continued communication with the client’s solicitor enabled all parties to stay continuously updated.

The integrated service provided alongside our thorough communication processes meant that the client was very happy with the final result from both Innovation 4 Business and Finance 4 Business.

Finance 4 Business has recently supported us through the complex transaction of moving our personal property portfolio into our limited company while refinancing to assist to pay for the process.

Despite the complexities, a number of parties involved and the length of time that this was anticipated to take, the team at Finance 4 Business were a pleasure to deal with. The knowledge, communication and hands holding demonstrated to get this over the line was first class and wouldn’t hesitate to recommend them.“

Case Study Background
development finance
My property purchases, however simple or complex, will be going to Finance 4 Business going forward.
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