Advice please?

[Roses]

I am the sole beneficiary of a freehold
house I own and have just sold a
business. The house is rented and
I'm wondering how I can legally use
the rent to live on, while I take time
out of the workforce to pursue other
business interests. I'm also wanting
to purchase another property to live
in, and am wondering how to get this
mortgage paid. My company that
owned the business still exists.
Should the company buy the new
house, or maybe the trust? I'm at a
bit of a loss as to how to sort this.

[sidinz]

Firstly, you need to look at how your Trust is set up. That will tell you if you're allowed to rent the property out yourself. Even if you can't, it's highly likely that the Trust can rent it out and then distribute the income to you.

OR

The Trust should be able to buy the new property and use its income from the current house to pay the mortgage on the new one. But you'll have to see if the deed specifies that you, as beneficiary, are liable for the outgoings.

Either way, don't buy in the name of a company unless you're planning to rent it out or trade for a profit. No advantage and possibly disadvantages.

[Roses]

Thanks so much - very helpful.