A few questions on a development opportunity we have

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Hello All!

My wife and I are pursuing a development plot nearby where we live in Manchester and I’d like to ask readers for their thoughts on a few issues.

We’d like to develop 1 or 2 properties on this site.

We currently own a couple of BTLs and our own home all of which are mortgaged. We have the cash to buy the site (unless it goes for well over the asking price) and we have also set up a property SPV in advance of this type of opportunity. Our questions:

• Ownership – should we buy the site personally or through a Ltd company? Can we transfer into company at later stage? What is stamp duty?
• Financing – should we use self build mortgage, development finance, what gearing? Is development finance as easy to get through company as personally? Would having some of our money covering the development costs make much difference? to either the rate or our overall lendability?
• What’d we do with profits? – take out? reinvest in more property? pay down lending? And what are tax considerations of each?
• What we’d do with properties? – We’re not sure whether we’d rent out, sell, or even possibly live in them?
• Tax management – capital gains, reinvestment, Stamp Duty. Do we pay tax if profits are reinvested in property through Ltd company?

Any thoughts on any of these issues and what advice we should be seeking would be most helpful.

Many thanks in advance.

All best

Andy

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