I have inherited a shop which has been fully paid off. If I was to transfer the shop asset into my company could I release some of the equity via the bank ? There is no mortgage and I'm not over 50.
Province/Country relating to question : UK
Nothing as off yet. I could remortgage if it still had a mortgage but it has been paid up.
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May I enquire as to why you would need to transfer it into your company to do this please?
I would simply like to release some of the money from the shop possibly to reinvest into more properties to rent
Could you not mortgage the shop in order to do this?
I thought this is the only way , I maybe wrong?
The mortgage is already paid off, so I assumed the only way is to apply for a loan which generally would be more expensive?
You could take out a new mortgage on the shop in your own name. If you transfer it to your company you wuold have to pay stamp duty on the transfer if the shop is worth more than the stamp duty threshold
You can apply to lenders to take out a mortgage on the shop to release equity.
Is there anything else I can help you with?
seriously , I honestly thought if the mortgage is paid that I cant extend it . Thats why some people keep a minimum amount on their mortgage.
You can't normally extend a mortgage. What I am suggesting is that you could obtain a new mortgage.
Ok , even though I already own it ?
Your bank or other lenders will be happy to consider a mortgage on the property.
brilliant , thank you for clarifying that. I assume I would apply for buy to let mortgage
Because it is a shop you will likely need a commercial mortgage. This can be arranged through your bank or if you prefer with a broker.
ok thanks for your help , thought it was would be more complicated , thanks !
LL.B (Hons), Prof Dip Law & Practice. 9 years experience in private practice in England
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