Limited Company Buy To Lets

Limited Company Buy to let mortgages can potentially offer a tax-efficient way to invest in property. Since the tax changes were bought into force last year, there have been a huge number of individuals choosing to purchase investment properties in limited company names.

If you already own a limited company and are looking to either refinance or purchase a new property, getting a mortgage can be tough. Luckily, the advisors we work with have access to the whole market and regularly arrange ltd company mortgages for new and existing clients – just get in touch and a specialist will be happy to help.

Typically, most Ltd company mortgage lenders are only willing to approve companies that purely deal in property. However, there are a small number of lenders who consider companies trading in other areas. They don't usually accept non-property businesses that want to buy a property as well - these would usually be seen as commercial deals and would require specialist commercial finance.

Limited Company Buy To Let Advantages:

• Tax – can be seen as more tax efficient than personal income - especially for higher rate earners.
• Limited liability – if the company dissolves it is not forced to sell other personal assets (unless guarantee’s or other security is given).
• Multiple shareholders on title deeds can make it easier to manage proportions of ownership and share of profits etc.
• Other lenders for new personal mortgages may not take these into account as commitments and therefore allow increased personal borrowing.

Limited Company Buy To Let Disadvantages:

• Limited number of lenders to choose from = more restrictive criteria and choice of products, which may mean higher rates/costs and less value on investment.
• Potentially increased legal costs and paperwork.
• Slightly more complicated process to set up.