Investment

[MTZ510]

I am considering to buy a commercial property which i will give on rent to my company. I know there is no problem as far as HMRC and other regulatory authorities are concerned but i am not sure whether the UKBA will consider the payment of rent by my company to me as genuine investment or not.

In other words my company will pay me rent and i will invest that rent into the company through directors loan.

thanks

[ishfaqsangra]

If you buy commercial property on company's name that will be straight away investment but even after buying you are getting reasonable rent from company there should not be any problem you have to issue invoices to the company and keep them.
I am taking rent from the company for the room I am using as company office,(all inclusive)there is no harm but it should be reasonanle,I am paying everthing (Rent +bills) all on record through checks and direct debits.
Why they should object,its running expense.
wait for some other opinions.

[MTZ510]

Thanks for replying

[Olasunkanmi]

@ MTZ510, your idea is allowed but you need to be very careful as you will attract more scrutiny from HO. Why don't you buy the property in your company's name to avoid complication or suspicion.

[MTZ510]

yeah i am also confused which way to go.

Thanks for your comments

[rehan01]

if I was you I would play safe and buy commercial property on company name and then even if I give it on rent its safe as initial investment will be cleared proper way and no question and doubt will be remaining.


regards

[MTZ510]

Thank you rehan for sharing your opinion.

I am looking to buy property with some financing from bank most probably around 60% own and 40% bank lending, so i though it will be appropriate to keep this bank loan out of company books to keep things simple for UKBA. You know the bank liability in company accounts might give wrong impression to case worker.

What do you say?

if I was you I would play safe and buy commercial property on company name and then even if I give it on rent its safe as initial investment will be cleared proper way and no question and doubt will be remaining.


regards

[rehan01]

yes u r right ofcourse bank liability will raise concern at later stage ........ I guess u need to get a proper accountant who understand In and out of Tier 1 entrepreneur and I believe he will be the best person to advice you on that.

remember when there is will there is a way so keep trying but make sure play safe.


regards

Thank you rehan for sharing your opinion.

I am looking to buy property with some financing from bank most probably around 60% own and 40% bank lending, so i though it will be appropriate to keep this bank loan out of company books to keep things simple for UKBA. You know the bank liability in company accounts might give wrong impression to case worker.

What do you say?

if I was you I would play safe and buy commercial property on company name and then even if I give it on rent its safe as initial investment will be cleared proper way and no question and doubt will be remaining.


regards

[ishfaqsangra]

I am also planning the same and would really appreciate any input and guidence under the same topic

[kayess1984]

Hello guys, I'm also planning same since my business doesn't require investment of £200k in just 3 years. I can invest 200k in 3 years but I need a safe side as well. And I don't wanna buy any cheap commercial property just for the sake of visa, I would want a good investment with long term benefits and I may need a loan for that because I plan to buy the property in Greater London and commercial property isn't cheap there.
So far what I know, I can invest in a commercial property (residential part value will not be considered by the UKBA and max commercial property comes with residential flats on top in that area) and I can also take a loan for the same as the value of the property would be more than £200k, and the amount which I have invested in the property (minus the value of residential part & mortgage) would be considered as part of my investment by UKBA. Please correct me if I'm wrong, and also advice buying the commercial property on my name would benefit me or buying in the name of my business? I don't wanna invest in the name of business because the business is in partnership (50-50) with my family friends in the UK, please advise.
Thanks!

[ishfaqsangra]

Say for example property is 120,000 ,you paid £70,000 and,rest 50000 is loan and out of paid 70,000 ,20,000 is value of residential then YES net is £50,000 invested you r right. as per my understandings.
Wait for further input

[kayess1984]

Thanks for the example mate, lets wait for IB seniors to advise.
Cheers!