The rise of limited company buy to let
Challenging market conditions, increasing financial pressures and regulatory requirements are driving an increasing number of landlords to choose a limited company structure for their buy to let business. This shift towards professionalism is being recognised by the industry, with lenders introducing specialist ranges of limited company landlord mortgages designed specifically for investors who manage a full-time rental portfolio.
At a time when demand for rental properties is outstripping supply, those landlords in a position to expand their portfolio, change their business structure or enter the market at a professional level may find they have a competitive edge.
A trend towards greater professionalism
Over the last ten years, taxation and regulatory changes in the private rented sector has left amateur, accidental and smaller portfolio landlords struggling to compete and, as financial pressures grow, many are selling up. This has coincided with a trend towards greater professionalism across the market which looks set to continue. According to recent research by Paragon Bank*, 49% of mortgage brokers expect the volume of buy to let portfolio limited company lending to increase in the next 12 months. Indeed, at Vincent Burch Mortgage Services we have seen a noticeable increase in the number of mortgage applications we have processed from limited company buy to let businesses.
This shift is highlighted by a separate BVA BDRC survey of landlords in Q1 2023 which revealed that 62% of those landlords intending to expand their portfolios, plan to purchase properties within a limited company structure, up from 43% in Q3 2021.
What you need to consider when being a limited company landlord
There are several aspects to consider when becoming a limited company landlord and we strongly advise taking professional advice before making a final decision on the best course of action for your circumstances.
Choose the right limited company buy to let mortgage
When it comes to giving mortgage advice, our team at Vincent Burch Mortgage Services has over 200 years of combined knowledge and experience to call upon. Deciding on the best limited company buy to let mortgage for your needs can be a daunting prospect– why not take advantage of our friendly advice and expertise to ensure you make the right choice?
As an independent broker we have access to the whole of the market, including specialist lenders often not available on the high street. We’ll work closely with you to search the market and find a limited company mortgage that best fits your needs.
So, if you’re a limited company landlord, or thinking of becoming one and would like impartial advice on any aspect of mortgage finance, please call today on 01603 851534 or email [email protected].
*Research undertaken by BVA BDRC for Paragon’s Mortgage Intermediary Insight Report
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