7 minutes
7 minutes
7 minutes
7 minutes
to read
Thursday 5 June 2025
Thursday 5 June 2025
Thursday 5 June 2025
Thursday 5 June 2025
This might not be the most common direction of travel when it comes to property and limited companies. More often than not, we see people wanting to transfer buy-to-let properties into a limited company, typically for tax planning or investment structuring reasons. ** But in this blog, we're looking at the opposite scenario—what happens when you already have a property in a limited company, and now you want to buy it from the company in your own name, often because you want to live in it yourself.
Yes, you can buy a property from your own limited company, but there are several important factors to consider. This process is often undertaken when an individual has developed or owns a property through a limited company and now wishes to reside in it personally or hold it as a second property for holidays or for a family member. However, transitioning a property from company ownership to personal ownership involves legal, financial, and tax implications that must be carefully navigated. **
Can I Live in a Property Owned by My Limited Company?
Generally speaking, living in a property owned by your limited company is not straightforward—especially when it comes to mortgages. Most mortgage lenders do not offer residential mortgage products to limited companies where the intent is for the owner or director to live in the property. This is primarily because residential mortgage products are designed for personal use, and lending to a business entity with personal occupation creates regulatory and lending complexities.
While it might be technically possible to live in a mortgage-free property owned by a limited company, this can still trigger significant tax and legal implications. And practically speaking, most scenarios involve needing a mortgage. Since residential mortgages aren’t typically available to limited companies for this purpose, the usual solution is for the individual to purchase the property personally, removing it from the company’s ownership.
What Are the Steps to Buy a Property from My Limited Company?
Before anything else, we recommend seeking professional tax advice. This ensures you're aware of any liabilities and understand your obligations clearly before starting the process.
Once you're confident in your position from a tax standpoint, the steps generally include:
** Speak with a Mortgage Advisor: The first step is to speak with one of our advisors at Barrett Mortgages. We’ll discuss your requirements in detail, give you an early idea of the associated costs, and go over the various deposit options based on your circumstances.
Engage a Solicitor: Once you're happy to move forward, it's important to appoint a solicitor early on. In most cases, the same solicitor can act for both you and your limited company in the sale and purchase. However, in some situations—depending on the lender or the complexity of the transaction—you may need separate solicitors to act for the company and for you personally.
Submit a Mortgage Application: Once you’ve reviewed the costs and are happy to proceed, we’ll go ahead and submit a formal mortgage application on your behalf.
Survey and Valuation: After the application is submitted, a valuation will be arranged by the lender. This gives both you and the lender confidence in the property's condition and value.
Legal Process Begins: Usually, the legal process kicks off in full once a formal mortgage offer has been received. Your solicitor will then coordinate with the company to complete the sale.
Will I Need to Buy the Property at Market Value?
Yes, in most cases, lenders will require the property to be purchased at full market value. This means you won't be able to simply take the property off the company's hands at a discounted or nominal rate unless you’re paying in cash and the deal structure is carefully managed. Because of this, you might need to factor in the full market value when assessing affordability, and crucially, when calculating potential Stamp Duty Land Tax (SDLT) obligations. **
For example, even if you own 100% of the limited company, the transaction between you and the company is considered a sale, and SDLT will generally apply based on the agreed purchase price. Always factor this into your budgeting.
Can I Use the Property's Equity as a Deposit?
In some cases, lenders may allow the use of a property's existing equity as part of the deposit, particularly if the property is being sold to you at a price below its market value. This can be referred to as a "gifted equity" or a "genuine bargain price" situation. However, not all lenders accept this arrangement, and specific criteria must be met. It's essential to discuss this option with our advisors at Barrett Mortgages to determine its feasibility in your situation.
Are There Tax Considerations?
Yes, several tax considerations must be taken into account:
Stamp Duty Land Tax (SDLT): As mentioned, your transaction may be subject to SDLT on the property's purchase price. The rate depends on various factors, including whether you own other properties. **
Capital Gains Tax (CGT): The limited company may incur CGT on any profit from the sale of the property. ** The amount depends on the property's increase in value since the company acquired it.
Corporation Tax: The company may also need to pay Corporation Tax on the gain from the sale. **
Given the complexity of these tax implications, it's highly recommended to consult with a qualified tax advisor to understand the full impact and to ensure compliance with all tax obligations. **
What If the Property Is a New Build?
If the property is a new build and the limited company has owned it for less than six months—or it's been less than six months since the building's completion certificate was issued—some lenders may be hesitant to provide a mortgage. This is due to concerns about property value stability and potential issues with the property's title. It's important to discuss this with our advisors at Barrett Mortgages, as some lenders may have specific criteria or waiting periods for new build properties.
Do I Need Consent from Other Shareholders or Directors?
If your limited company has multiple shareholders or directors, you'll need to obtain formal consent for the sale of the property to yourself. This typically involves a resolution passed at a board meeting and proper documentation to ensure transparency and compliance with corporate governance standards.
Final Thoughts
Purchasing a property from your own limited company to live in is possible but involves several steps and considerations. It's crucial to engage with professionals, including mortgage advisors, solicitors, and tax consultants, to navigate the process effectively and to ensure all legal and financial obligations are met.
If you need assistance with this process or have further questions, feel free to reach out. We're here to help guide you through each step.
Important Note: Where we have mentioned Stamp Duty Land Tax or any other form of taxation in this blog, please note this does not constitute tax advice. We do not offer tax advice, and you should always seek guidance from a qualified tax specialist to understand your individual circumstances.
**
This might not be the most common direction of travel when it comes to property and limited companies. More often than not, we see people wanting to transfer buy-to-let properties into a limited company, typically for tax planning or investment structuring reasons. ** But in this blog, we're looking at the opposite scenario—what happens when you already have a property in a limited company, and now you want to buy it from the company in your own name, often because you want to live in it yourself.
Yes, you can buy a property from your own limited company, but there are several important factors to consider. This process is often undertaken when an individual has developed or owns a property through a limited company and now wishes to reside in it personally or hold it as a second property for holidays or for a family member. However, transitioning a property from company ownership to personal ownership involves legal, financial, and tax implications that must be carefully navigated. **
Can I Live in a Property Owned by My Limited Company?
Generally speaking, living in a property owned by your limited company is not straightforward—especially when it comes to mortgages. Most mortgage lenders do not offer residential mortgage products to limited companies where the intent is for the owner or director to live in the property. This is primarily because residential mortgage products are designed for personal use, and lending to a business entity with personal occupation creates regulatory and lending complexities.
While it might be technically possible to live in a mortgage-free property owned by a limited company, this can still trigger significant tax and legal implications. And practically speaking, most scenarios involve needing a mortgage. Since residential mortgages aren’t typically available to limited companies for this purpose, the usual solution is for the individual to purchase the property personally, removing it from the company’s ownership.
What Are the Steps to Buy a Property from My Limited Company?
Before anything else, we recommend seeking professional tax advice. This ensures you're aware of any liabilities and understand your obligations clearly before starting the process.
Once you're confident in your position from a tax standpoint, the steps generally include:
** Speak with a Mortgage Advisor: The first step is to speak with one of our advisors at Barrett Mortgages. We’ll discuss your requirements in detail, give you an early idea of the associated costs, and go over the various deposit options based on your circumstances.
Engage a Solicitor: Once you're happy to move forward, it's important to appoint a solicitor early on. In most cases, the same solicitor can act for both you and your limited company in the sale and purchase. However, in some situations—depending on the lender or the complexity of the transaction—you may need separate solicitors to act for the company and for you personally.
Submit a Mortgage Application: Once you’ve reviewed the costs and are happy to proceed, we’ll go ahead and submit a formal mortgage application on your behalf.
Survey and Valuation: After the application is submitted, a valuation will be arranged by the lender. This gives both you and the lender confidence in the property's condition and value.
Legal Process Begins: Usually, the legal process kicks off in full once a formal mortgage offer has been received. Your solicitor will then coordinate with the company to complete the sale.
Will I Need to Buy the Property at Market Value?
Yes, in most cases, lenders will require the property to be purchased at full market value. This means you won't be able to simply take the property off the company's hands at a discounted or nominal rate unless you’re paying in cash and the deal structure is carefully managed. Because of this, you might need to factor in the full market value when assessing affordability, and crucially, when calculating potential Stamp Duty Land Tax (SDLT) obligations. **
For example, even if you own 100% of the limited company, the transaction between you and the company is considered a sale, and SDLT will generally apply based on the agreed purchase price. Always factor this into your budgeting.
Can I Use the Property's Equity as a Deposit?
In some cases, lenders may allow the use of a property's existing equity as part of the deposit, particularly if the property is being sold to you at a price below its market value. This can be referred to as a "gifted equity" or a "genuine bargain price" situation. However, not all lenders accept this arrangement, and specific criteria must be met. It's essential to discuss this option with our advisors at Barrett Mortgages to determine its feasibility in your situation.
Are There Tax Considerations?
Yes, several tax considerations must be taken into account:
Stamp Duty Land Tax (SDLT): As mentioned, your transaction may be subject to SDLT on the property's purchase price. The rate depends on various factors, including whether you own other properties. **
Capital Gains Tax (CGT): The limited company may incur CGT on any profit from the sale of the property. ** The amount depends on the property's increase in value since the company acquired it.
Corporation Tax: The company may also need to pay Corporation Tax on the gain from the sale. **
Given the complexity of these tax implications, it's highly recommended to consult with a qualified tax advisor to understand the full impact and to ensure compliance with all tax obligations. **
What If the Property Is a New Build?
If the property is a new build and the limited company has owned it for less than six months—or it's been less than six months since the building's completion certificate was issued—some lenders may be hesitant to provide a mortgage. This is due to concerns about property value stability and potential issues with the property's title. It's important to discuss this with our advisors at Barrett Mortgages, as some lenders may have specific criteria or waiting periods for new build properties.
Do I Need Consent from Other Shareholders or Directors?
If your limited company has multiple shareholders or directors, you'll need to obtain formal consent for the sale of the property to yourself. This typically involves a resolution passed at a board meeting and proper documentation to ensure transparency and compliance with corporate governance standards.
Final Thoughts
Purchasing a property from your own limited company to live in is possible but involves several steps and considerations. It's crucial to engage with professionals, including mortgage advisors, solicitors, and tax consultants, to navigate the process effectively and to ensure all legal and financial obligations are met.
If you need assistance with this process or have further questions, feel free to reach out. We're here to help guide you through each step.
Important Note: Where we have mentioned Stamp Duty Land Tax or any other form of taxation in this blog, please note this does not constitute tax advice. We do not offer tax advice, and you should always seek guidance from a qualified tax specialist to understand your individual circumstances.
**
This might not be the most common direction of travel when it comes to property and limited companies. More often than not, we see people wanting to transfer buy-to-let properties into a limited company, typically for tax planning or investment structuring reasons. ** But in this blog, we're looking at the opposite scenario—what happens when you already have a property in a limited company, and now you want to buy it from the company in your own name, often because you want to live in it yourself.
Yes, you can buy a property from your own limited company, but there are several important factors to consider. This process is often undertaken when an individual has developed or owns a property through a limited company and now wishes to reside in it personally or hold it as a second property for holidays or for a family member. However, transitioning a property from company ownership to personal ownership involves legal, financial, and tax implications that must be carefully navigated. **
Can I Live in a Property Owned by My Limited Company?
Generally speaking, living in a property owned by your limited company is not straightforward—especially when it comes to mortgages. Most mortgage lenders do not offer residential mortgage products to limited companies where the intent is for the owner or director to live in the property. This is primarily because residential mortgage products are designed for personal use, and lending to a business entity with personal occupation creates regulatory and lending complexities.
While it might be technically possible to live in a mortgage-free property owned by a limited company, this can still trigger significant tax and legal implications. And practically speaking, most scenarios involve needing a mortgage. Since residential mortgages aren’t typically available to limited companies for this purpose, the usual solution is for the individual to purchase the property personally, removing it from the company’s ownership.
What Are the Steps to Buy a Property from My Limited Company?
Before anything else, we recommend seeking professional tax advice. This ensures you're aware of any liabilities and understand your obligations clearly before starting the process.
Once you're confident in your position from a tax standpoint, the steps generally include:
** Speak with a Mortgage Advisor: The first step is to speak with one of our advisors at Barrett Mortgages. We’ll discuss your requirements in detail, give you an early idea of the associated costs, and go over the various deposit options based on your circumstances.
Engage a Solicitor: Once you're happy to move forward, it's important to appoint a solicitor early on. In most cases, the same solicitor can act for both you and your limited company in the sale and purchase. However, in some situations—depending on the lender or the complexity of the transaction—you may need separate solicitors to act for the company and for you personally.
Submit a Mortgage Application: Once you’ve reviewed the costs and are happy to proceed, we’ll go ahead and submit a formal mortgage application on your behalf.
Survey and Valuation: After the application is submitted, a valuation will be arranged by the lender. This gives both you and the lender confidence in the property's condition and value.
Legal Process Begins: Usually, the legal process kicks off in full once a formal mortgage offer has been received. Your solicitor will then coordinate with the company to complete the sale.
Will I Need to Buy the Property at Market Value?
Yes, in most cases, lenders will require the property to be purchased at full market value. This means you won't be able to simply take the property off the company's hands at a discounted or nominal rate unless you’re paying in cash and the deal structure is carefully managed. Because of this, you might need to factor in the full market value when assessing affordability, and crucially, when calculating potential Stamp Duty Land Tax (SDLT) obligations. **
For example, even if you own 100% of the limited company, the transaction between you and the company is considered a sale, and SDLT will generally apply based on the agreed purchase price. Always factor this into your budgeting.
Can I Use the Property's Equity as a Deposit?
In some cases, lenders may allow the use of a property's existing equity as part of the deposit, particularly if the property is being sold to you at a price below its market value. This can be referred to as a "gifted equity" or a "genuine bargain price" situation. However, not all lenders accept this arrangement, and specific criteria must be met. It's essential to discuss this option with our advisors at Barrett Mortgages to determine its feasibility in your situation.
Are There Tax Considerations?
Yes, several tax considerations must be taken into account:
Stamp Duty Land Tax (SDLT): As mentioned, your transaction may be subject to SDLT on the property's purchase price. The rate depends on various factors, including whether you own other properties. **
Capital Gains Tax (CGT): The limited company may incur CGT on any profit from the sale of the property. ** The amount depends on the property's increase in value since the company acquired it.
Corporation Tax: The company may also need to pay Corporation Tax on the gain from the sale. **
Given the complexity of these tax implications, it's highly recommended to consult with a qualified tax advisor to understand the full impact and to ensure compliance with all tax obligations. **
What If the Property Is a New Build?
If the property is a new build and the limited company has owned it for less than six months—or it's been less than six months since the building's completion certificate was issued—some lenders may be hesitant to provide a mortgage. This is due to concerns about property value stability and potential issues with the property's title. It's important to discuss this with our advisors at Barrett Mortgages, as some lenders may have specific criteria or waiting periods for new build properties.
Do I Need Consent from Other Shareholders or Directors?
If your limited company has multiple shareholders or directors, you'll need to obtain formal consent for the sale of the property to yourself. This typically involves a resolution passed at a board meeting and proper documentation to ensure transparency and compliance with corporate governance standards.
Final Thoughts
Purchasing a property from your own limited company to live in is possible but involves several steps and considerations. It's crucial to engage with professionals, including mortgage advisors, solicitors, and tax consultants, to navigate the process effectively and to ensure all legal and financial obligations are met.
If you need assistance with this process or have further questions, feel free to reach out. We're here to help guide you through each step.
Important Note: Where we have mentioned Stamp Duty Land Tax or any other form of taxation in this blog, please note this does not constitute tax advice. We do not offer tax advice, and you should always seek guidance from a qualified tax specialist to understand your individual circumstances.
**
This might not be the most common direction of travel when it comes to property and limited companies. More often than not, we see people wanting to transfer buy-to-let properties into a limited company, typically for tax planning or investment structuring reasons. ** But in this blog, we're looking at the opposite scenario—what happens when you already have a property in a limited company, and now you want to buy it from the company in your own name, often because you want to live in it yourself.
Yes, you can buy a property from your own limited company, but there are several important factors to consider. This process is often undertaken when an individual has developed or owns a property through a limited company and now wishes to reside in it personally or hold it as a second property for holidays or for a family member. However, transitioning a property from company ownership to personal ownership involves legal, financial, and tax implications that must be carefully navigated. **
Can I Live in a Property Owned by My Limited Company?
Generally speaking, living in a property owned by your limited company is not straightforward—especially when it comes to mortgages. Most mortgage lenders do not offer residential mortgage products to limited companies where the intent is for the owner or director to live in the property. This is primarily because residential mortgage products are designed for personal use, and lending to a business entity with personal occupation creates regulatory and lending complexities.
While it might be technically possible to live in a mortgage-free property owned by a limited company, this can still trigger significant tax and legal implications. And practically speaking, most scenarios involve needing a mortgage. Since residential mortgages aren’t typically available to limited companies for this purpose, the usual solution is for the individual to purchase the property personally, removing it from the company’s ownership.
What Are the Steps to Buy a Property from My Limited Company?
Before anything else, we recommend seeking professional tax advice. This ensures you're aware of any liabilities and understand your obligations clearly before starting the process.
Once you're confident in your position from a tax standpoint, the steps generally include:
** Speak with a Mortgage Advisor: The first step is to speak with one of our advisors at Barrett Mortgages. We’ll discuss your requirements in detail, give you an early idea of the associated costs, and go over the various deposit options based on your circumstances.
Engage a Solicitor: Once you're happy to move forward, it's important to appoint a solicitor early on. In most cases, the same solicitor can act for both you and your limited company in the sale and purchase. However, in some situations—depending on the lender or the complexity of the transaction—you may need separate solicitors to act for the company and for you personally.
Submit a Mortgage Application: Once you’ve reviewed the costs and are happy to proceed, we’ll go ahead and submit a formal mortgage application on your behalf.
Survey and Valuation: After the application is submitted, a valuation will be arranged by the lender. This gives both you and the lender confidence in the property's condition and value.
Legal Process Begins: Usually, the legal process kicks off in full once a formal mortgage offer has been received. Your solicitor will then coordinate with the company to complete the sale.
Will I Need to Buy the Property at Market Value?
Yes, in most cases, lenders will require the property to be purchased at full market value. This means you won't be able to simply take the property off the company's hands at a discounted or nominal rate unless you’re paying in cash and the deal structure is carefully managed. Because of this, you might need to factor in the full market value when assessing affordability, and crucially, when calculating potential Stamp Duty Land Tax (SDLT) obligations. **
For example, even if you own 100% of the limited company, the transaction between you and the company is considered a sale, and SDLT will generally apply based on the agreed purchase price. Always factor this into your budgeting.
Can I Use the Property's Equity as a Deposit?
In some cases, lenders may allow the use of a property's existing equity as part of the deposit, particularly if the property is being sold to you at a price below its market value. This can be referred to as a "gifted equity" or a "genuine bargain price" situation. However, not all lenders accept this arrangement, and specific criteria must be met. It's essential to discuss this option with our advisors at Barrett Mortgages to determine its feasibility in your situation.
Are There Tax Considerations?
Yes, several tax considerations must be taken into account:
Stamp Duty Land Tax (SDLT): As mentioned, your transaction may be subject to SDLT on the property's purchase price. The rate depends on various factors, including whether you own other properties. **
Capital Gains Tax (CGT): The limited company may incur CGT on any profit from the sale of the property. ** The amount depends on the property's increase in value since the company acquired it.
Corporation Tax: The company may also need to pay Corporation Tax on the gain from the sale. **
Given the complexity of these tax implications, it's highly recommended to consult with a qualified tax advisor to understand the full impact and to ensure compliance with all tax obligations. **
What If the Property Is a New Build?
If the property is a new build and the limited company has owned it for less than six months—or it's been less than six months since the building's completion certificate was issued—some lenders may be hesitant to provide a mortgage. This is due to concerns about property value stability and potential issues with the property's title. It's important to discuss this with our advisors at Barrett Mortgages, as some lenders may have specific criteria or waiting periods for new build properties.
Do I Need Consent from Other Shareholders or Directors?
If your limited company has multiple shareholders or directors, you'll need to obtain formal consent for the sale of the property to yourself. This typically involves a resolution passed at a board meeting and proper documentation to ensure transparency and compliance with corporate governance standards.
Final Thoughts
Purchasing a property from your own limited company to live in is possible but involves several steps and considerations. It's crucial to engage with professionals, including mortgage advisors, solicitors, and tax consultants, to navigate the process effectively and to ensure all legal and financial obligations are met.
If you need assistance with this process or have further questions, feel free to reach out. We're here to help guide you through each step.
Important Note: Where we have mentioned Stamp Duty Land Tax or any other form of taxation in this blog, please note this does not constitute tax advice. We do not offer tax advice, and you should always seek guidance from a qualified tax specialist to understand your individual circumstances.
**
