Limited company buy-to-let
An alternative option to buying a buy-to-let property in your own name is to set up a limited company or special purpose vehicle (SPV) for the property purchase. There are several advantages, including tax savings and greater leverage potential. However, you should seek advice from a specialist tax adviser to ensure it’s the best option for you. Once set up, we can help you find the perfect mortgage solution.
If you plan to buy your investment property via a limited company, we can help you secure the right buy-to-let mortgage.
More and more landlords are choosing the limited company buy-to-let option as a savvy way to save money on tax. Whether you have a large or small property portfolio, these savings could apply to you. Limited companies typically pay less tax on the rental income received than individual landlords. Therefore, the net returns can be higher.
Also, some buy-to-let lenders prefer lending to a limited company than to an individual, giving greater leverage potential. This means that you may be able to release more capital when remortgaging or put down a smaller deposit. If you’re purchasing property with another investor, buy-to-let mortgages through limited companies can be an effective way to manage your investment.
If you’re involved in the buy-to-let market and are wondering which route is right for you, we can take you through the options and find the perfect solution for your circumstances.
Because we play by the book we want to tell you that...
Your home may be repossessed if you do not keep up repayments on your mortgage.
There may be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances.
The fee is up to 1%, but a typical fee is 0.3% of the amount borrowed.
There is no guarantee that it will be possible to arrange continuous letting of the property nor that rental income will be sufficient to meet the cost of the mortgage.