How to setup a Mortgage / Property Nominal correctly

[adnw]

hi
ive read how to setup a loan thread here, but it seems to not work properly or throw in a few issues if using it for a property

Accounting for loans

In accounting a loan is treated much like an overdrawn bank account. On the assumption that you are just setting up QuickFile and have a loan of £10,000 (outstanding), you would create a new “Loan” type bank account in Quick File to represent this. [image] Set the opening balance of £10,000 (minus). [image] If this is a brand new loan you don’t need to set the opening balance, instead locate the deposit for the loan on your current account and tag this as a bank transfer to the loan account…

situation 1.
ltd company has just purchased a property with a mortgage.
the deposit was paid from the ltd company bank account, all associated solicitor fees, stamp duty etc.

there was not a lump sum deposited in the company bank account as it was not a re mortgage, it was a new purchase.

how do i correctly setup this new asses, and tag or associate the interest only repaymentts coming out every month?

situation 02:
in the existing account, there is some property without a mortgage or loan. this has been setup (correctly or incorrectly) as

in Assets and liabilities, code 0018, Capital Exp ‘property name’.
all associated capital expenses have been put in here, purchase, solicitor, stamp etc.

[QFSteve]

Hello @adnw

There are a few posts about mortgages in the forum which may help.

Property and motgages

Hi, How do I add a property at the current market value and the current mortgage value to I can see it in the balance sheet? Any help greatly received. Regards.

Property Portfolio

Hi @elbutio You’re spot on - projects would be the way to achieve this. You can tag multiple sales and purchase invoices to a project (which you could use one project per property). This will allow you to produce a profit and loss report for each project. This should be fine. If they’re a liability for the business, then yes, they should be recorded so it’s on your balance sheet. This thread is from a few years back, but the concept still remains. Hopefully this will help setting up the mor…

https://community.quickfile.co.uk/t/how-to-tag-remortgage-funds-sole-trader/48318/4

It would be best to speak to your accountant for tailored professional advice on the specifics of your query.