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  1. #1

    Default Is it still worth putting a rental in LTC?

    We currently own a rental in our own names (property #1). After the current 12 month fixed term tenancy ends, we will rebuild on it and move it so it will become our family home. In the mean time, we are looking at buying a property (#2) that we will live in until property #1 is rebuilt, at which point #2 will be a rental, in the next 18-24 months.

    With the ring fencing rule set to come in, is it worth buying property #2 using a LTC? We expect to make a loss in the first year or two after it is rented out, from there hopefully it'll be cash positive. We have plans to buy more if the right property comes up, but unlikely for a couple of years, until our new family home is built.

  2. #2
    Join Date
    May 2007



    1) Ring fencing is in from 1/4/19

    2) LTC - is not a great entity for a personal home

    3) You are messy from a structure perspective as you are moving from 1 to the other.
    Generally want lowest debt on personal house. But in your case they will both be personal home once the fixed tenancy ends.

    4) Might be worth restructuring #2 once it becomes a rental

    Overall probably worth meeting with a property accountant now to get your long term structure right and work through your plan. Most of this will probably apply from when #2 is rented.

    More Profit from Property? TEACH ME MORE
    Ross Barnett - Coombe Smith Property Accountants
    Proud to give the best property advice for over 13 years.


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