Hey guys,
I'm working through a Ltd company for now and I'm withdrawing money from my Ltd company account into my personal account and purchasing property with it every few months. So basically I'm taking out a directors loan that allows me to purchase property through my own personal name. I'll need to pay interest on this loan amount to my Ltd company to keep it all above board which is fine.
However; I do need to pay my company back the principal at some point. Do I have to pay it back with cash or can I transfer a property to my Ltd company? For instance; say I have taken out a £100k directors loan, can I continue to pay interest on it and in a few years - transfer one of my properties worth £100k to my company to clear the outstanding directors loan?
Due to the amount of properties I own; it will be much more beneficial in the long term to have them in a Ltd company anyway (I'm not asking whether it's better to buy investment property through a personal or Ltd company as I know that Ltd co works best for my situation in the long term)
I'm working through a Ltd company for now and I'm withdrawing money from my Ltd company account into my personal account and purchasing property with it every few months. So basically I'm taking out a directors loan that allows me to purchase property through my own personal name. I'll need to pay interest on this loan amount to my Ltd company to keep it all above board which is fine.
However; I do need to pay my company back the principal at some point. Do I have to pay it back with cash or can I transfer a property to my Ltd company? For instance; say I have taken out a £100k directors loan, can I continue to pay interest on it and in a few years - transfer one of my properties worth £100k to my company to clear the outstanding directors loan?
Due to the amount of properties I own; it will be much more beneficial in the long term to have them in a Ltd company anyway (I'm not asking whether it's better to buy investment property through a personal or Ltd company as I know that Ltd co works best for my situation in the long term)
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