Through membership and investment in one of our limited liability partnership, if you want income in the future rather than immediately, we recommend taking a share of the mortgage secured against the commercial property.
Through this method the rent received from the property is used to repay the loan interest and the capital. Once the mortgage is repaid then the rent will be paid to you as income.
An example of this would be as follows:-
|Share of mortgage||£50,000|
|Total share of LLP||£150,000|
So on day 1 the share of the rent for this member may be £9,000 per annum, however the first 7 years of rent will be used to pay down the loan.
After 7 years the rent will be paid to the investor. So a deferred income is achieved after 7 years of 9% per annum from the original investment.
Much better than the 1% achieved from many bank deposit accounts.
Please note that due to the profits, there is likely to be an annual tax bill of circa £1800 per annum through your self assessment, even though the profits in the first 7 years are being used to repay the mortgage.
This is an excellent way of achieving strong long term investment income streams, that can also pass from one generation to the next.
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