I am a self employed property professional. My main residence was purchased via BVI company and I need to now sell it from the company to my self with a transfer of equity. It is worth £1.2m and I have a mortgage on it for £485,000. I have an excellent credit file. My difficulty is my income. I have reported net profit of £101,365 however this is made up of a capital gain added to my income from selling a london property. I have £20,530 retained profit from a uk Ltd co that can be added. so far underwriters won't take my income into account. Do you have a lender that will take it or base their decision on my bank statements. My future income is good as I have started a new property business with £160,000 going through my bank account.
Many thanks, Barry
Ask the Specialist response:
Thanks for your email.
Although it is not unusual for us to have assisted clients who have owned properties via a company in the British Virgin Islands, your circumstances may be challenging.
Typically, we tend to find that although self employed property professionals declare their tax position, we can only utilise the net profits from the company rather than any capital gains for mortgage affordability purposes. My greatest fear is that the only tax forms we can use one's income from will be an SA302 rather than SA105 or SA108s which we sometimes find property developers use.
It may be worth giving a call to one of our advisers on 020 77 100 400 if you are able to meet the above criteria and one of our specialist advisers will be able to outline what you may or may not be able to achieve.