House purchase limited company
Hello everybody.
It's my first time posting on reddit so please forgive me if this is clumsily written or if I'm missing important information.
We're interesting in buying a house for £750k and had an offer accepted. Our house is currently on the market but viewings have been very sparse despite dropping the price and we're getting pressure to drop our asking price even further.
My wife and I are keen to obtain this property and are exploring the option of purchasing our current house via a limited company with a view to using it as a buy to let (we will use our savings to pay the 25% deposit).
By doing this, would we able able release whatever equity we have in our current house to use as as a deposit for the next house +/- stamp duty for the transactions of both properties?
For example if the market value of our house is £400,000 and we have £200,000 of our mortgage remaining, would that release £200,000 equity?
It would be great if we could keep this current house as it's our first house and where both our children have grown up their whole lives!
Would be grateful for any answers or information you can provide.
Thank you.