Change structure?
Question from Suzanne updated on 27th July 2015:
I have a look through company (LTC) with four rental properties. My bank manager has said the bank can’t offer me a revolving mortgage because my company is a LTC. The manager was unable to explain this further. In 2010 to 2011 I changed my company from the LAQC to LTC after discussing this with my accountant. Should I have made a different decision in 2011 and would it be useful to alter the structure of my company now? If so, what would be the best option?
Our expert Mark Withers responded:
I have not encountered a situation where a banking product has specifically been excluded as a result of a company electing to apply for LTC status. The LTC status is simply a tax election that the shareholders make when they see advantage in doing so. I can't see any reason why the election status would alter a lenders risk profile at all.
Mark Withers and his team at Withers Tsang & Co specialise in advising on property related transactions, valuation and restructure services and tax planning.
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