Limited Company buy to let

What is a Limited Company Buy to Let Mortgage?

Generally speaking, when people invest in a buy to let, they make the purchase in their own name. However, there are other options available for investors such as setting up a Limited Company buy to let to purchase your property through, or a Special Purpose Vehicle, (SPV) which are set up solely for the buying, selling and letting of residential property.

This essentially means that instead of owning the property in your own name, you set up your own Limited Company, to purchase an investment property through.

 Limited company buy to let

What are the Benefits?

Whether you have a large or small property portfolio, more and more landlords are choosing the limited company buy to let option as a savvy way to save money on tax. Gaining property tax advice from a specialist is essential. However, Limited companies will typically pay less tax than individual landlords on the rental income received, therefore the net returns can be higher.

In addition to this, some lenders are happier lending to a limited company than to an individual, thus giving greater leverage potential. This means that you may be able to release more capital when remortgaging or you’ll be able to put down a smaller deposit.
Buy-to-let mortgages through limited companies can also be an effective method of purchasing property when more than one investor is involved.

If you are interested in the buy to let market and are wondering which route is right for you, then speak to one of our specialist mortgage advisors today. It might be a Limited company, SPV or private landlord – we can take you through the options and find the perfect solution for your circumstances.

Got a question? Drop us a line and we will get back to you as soon as possible.

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.

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