From: John Boyle 
Newsgroups: uk.finance
Subject: Re: INVESTMENT PROPERTY and SHARES
Date: Wed, 27 Dec 2006 17:49:28 +0000

In message <1167228093.107383.105040@n51g2000cwc.googlegroups.com>, 
"georgehughes@uwclub.net"  writes
>I should be most grateful if there is there anyone out there who can
>help me out?
>
>I have a property, paid for outright, rented out, and wish to offer my
>friends and family shares in around seventy percent of the capital
>growth of that property, from a brick's worth to a gable end's, keeping
>the balance (tied up) for myself and allowing them a much better return
>than the banks give them.
>
>>From this I release the value of my property, allowing me to purchase a
>second one for cash, again in my name, renting again and allowing
>investment again, etc, etc.
>
>It will be seen that many properties can be acquired in this way with
>very little outlay, allowing people the chance to invest in a good
>percentage of the growing value of the property market.
>
>I would use the whole rental income for myself, along with all
>management costs and refurbs/tenancy involvement, meaning the investors
>would receive only the high percentage from the capital appreciation,
>possibly tied in for a period of a couple of years.
>
>
>
>>From this option, would their dividends, paid out only once on the
>surrender of the shares, be liable only to capital gains tax, or are
>there other options I would need to look into?
>
>Also, would I need to set up a limited company to deal with this
>option, or can an individual do it?
>
>Another thing is, would I need to be a member of the Financial Services
>Commission, or is this just another insurance scheme (scam), like the
>NHBC, set up just to give the punters a better feeling of security?
>
>I'd really appreciate any replies, and many thanks for looking!
>

Why dont you just take a first legal charge in your favour for the same 
amount as the initial value. So, if the others have 70% and you have 30% 
and the property is initially valued at £100,000, and it sells later for 
£200,000 then you will always get your £100,000 plus £30k of the rest 
and the others get £70k. This will be a capital gain. Ownership of the 
rent would be declared to be entirely yours, (the ownership of the rent 
does not have to be in the same proportion as the ownership of the 
capital).

However, when you said ">>From this I release the value of my property," 
that is when you lost me. Are you asking the others to give you money 
for their share of the property? or where you intending to go to a high 
street mortgagee for a buy to let type mortgage to release equity? 
Please can you answer this? Your answer will then enable me to be far 
more precise as to the way to proceed (if it is possible to proceed 
further at all)

(By the way, as it stands at the moment I cant see how a Limited Company 
can help you, and I dont follow your thinking on that at all, either in 
your OP or your other reply elsewhere).
-- 
John Boyle