One way or another, any large purchase needs funding. Here are a few tips we have picked up along the way which have helped others when purchasing a garden building.
It’s usually best to use your own money or say yes to offers from family. But don’t rule out a loan if pulling your funds out means losing interest or a bonus, as some loans as you’ll see can work well too.
Loans can be expensive. Rates of 15 to 20% are often seen which can negate any low cost of a building. In many cases what appears to be a low cost building soon costs much more with non competitive loans.
Ever known a bank offer money for Free? – Buy now pay later or Interest Free loans are usually funded by your supplier with part of your purchase price (as much as 25% of it)!. So to get best value for money, we suggest sourcing your own funds.
Spread the cost with flexible finance!
At Kingdom Rooms, we understand that many customers may prefer the option of paying with finance. That is why we are proud to be partnered with established credit brokers, Ideal4Finance, to enable customers to spread the cost of your purchase with manageable monthly payments.
Online applications are quick and simple. The final decision is based on your individual circumstances, including your personal credit profile, how much you want to borrow and the loan period.
Ideal4Finance help thousands of people secure finance for their purchases. They use only reputable lenders and are Trustpilot-rated ‘Excellent’.
There are risks involved in taking out a loan and you should ensure you can make all payments on time and in full; failure to do so can lead to financial difficulties and have a negative impact on your credit score.
If you are ready to apply click below to get a finance quote or call Ideal4Finance on 020 3617 4647 (Mon to Fri, 9am to 5pm), mentioned ‘Kingdom Rooms’.
Any rates offered are subject to status and approval.
Glaart Limited T/A Kingdom Rooms is an Introducer Appointed Representative of Ideal Sales Solutions Ltd, t/a Ideal4Finance. Ideal Sales Solutions Ltd is a credit broker and not a lender (FRN 703401). Finance available subject to status. The rate offered is always provisional and will depend upon your personal circumstances, the loan amount and the term.
Unless used for a short period, try to avoid using a credit card as your interest rate may be quite high.
Businesses often pay a high rate for acepting card payments too, so may prefer you to pay another way. Using other funds and saving them money may help you get a better deal. Our preferred payment method is bank transfer.
It’s a case of better the Devil you know. As loan interest is generally based on risk, borrowing from a lender you already use (and have a good payment record with), may result in you paying a lower interest rate.
Many self employed people and those operating their own business may be able to make tax legal savings if the building is for business use. If employed, your employer may be able to assist too through a Benefit in Kind (BIK).
Speak to your Accountant
Speak to your Accountant as they know your business best and we liked this Accountant Specialist article.
You may be able to:
- Claim a % of the purchase cost related to your business. You may be using it 50/50 between personal and business use.
- Buy personally and get tax relief against the rental amount you then personally charge your limited company, partnership or sole trader business.
- Claim the additional cost incurred to turn this from a basic structure to a year round and comfortable workplace. For example a £10,000 extra cost for insulation, IT, decoration, extra power, security and office flooring may be a tax deductable cost.
- A BIK through a supportive employer could be via a rental space for you or towards the capital cost of the building.
Important. Ensure that your actions do not leave you liable for any Capital Gains Tax (CGT) payable on a future house sale. To aid against this, our structures are not fixed to our ground screws and as such may not be deemed as ‘fixtures’. Any purchase and tax saving must be in compliance with current HM Custom requirements.
Bank transfers are our preferred payment method, with our account details stated on your quotation.
Making large payments can be a concern, so we are happy if you make a £10 test payment to use and ask for a confirmation as reeived before making any larger first payment.
