Hello. I have a BTL property, that was once my personal residence, with a personal mortgage and I'm considering moving it to a limited company that's being used for other BTL properties. I understand that it's not as easy is just swapping it over and that the company would essentially have to purchase the property etc. I've had the property for a while with a repayment mortgage so the loan value is quite a bit less now than it was and considerably less than the market value of the property.
I'm trying to understand what value the company would purchase the property at. Let's say the property has been valued at £500k and there's £250k remaining on the mortgage, would the company purchase the property at £500k and take a £250 mortgage out for the rest, in which case would the company then owe me £250k? Or, could the company just purchase the property for £250k and take a £250k mortgage out, therefore owing me nothing, assuming that this would still be a 50% LTV mortgage?
Thanks in advance