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House Price Crash Forum


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About onlylooking

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    HPC Poster
  1. There is no inconsistency if the aim of the game is to minimise the tax liability whilst extracting capital. The mortgage is taken out so that interest payments can be offset against tax.
  2. There is no stamp duty as the property is never sold as it is always being remortgaged. I'd be very surprised if there is a bank that won't give you the cash on a nearly fully paid off property.
  3. CCC's scenario was for a non mortgaged property: Set up shell company to hold property. Extract capital via equity withdrawal using capital repayment mortgage. Ensure mortgage repayment is at similar level to rental income. Drip feed extracted capital via dividend payments from the shell property company. Rinse and repeat.
  4. CCC wanted to know how to minimise tax liability once mortgage was paid off. This method is one such route. Also helps to avoid IHT at a later date.
  5. Not if the tenant is covering a capital repayment mortgage. Shell BTL company would pay out the equity withdrawal via dividends to further reduce tax liability.
  6. Cash out via equity withdrawal and extend the mortgage so that it is never paid off. Rinse and repeat to minimise tax liability.
  7. Give it a couple of years and see how much money you have in your bank account. Then start thinking about settling down with kids in a decent school catchment area. Still affordable?
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