We are experienced in all types of Limited Company Buy to Let, whether Portfolio Landlords to First Time Landlords, large or small, own name or via a Limited Company, or where there is a Trust involved.
Contact UsA limited company mortgage means you can buy a property in the name of a company rather than your own name. You will need to be Director of that Limited Company, on your own or jointly with up to four Directors. The Limited Company will be the owner of the property, rather than you as an individual.
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Operating a buy-to-let as a limited company has increased in popularity since 2017 when the Government began reducing tax relief for individual property investors. Limited company landlords are able to claim 100% mortgage interest relief and also benefit from the lower rates of Corporation Tax paid on profits compared to Income Tax paid on earnings generated from rental income.
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Being ‘whole of market’ means we can offer you a variety of buy-to-let mortgage rates. 100+ lenders, offering 1000s of mortgage products. All with a selection of options available to limited companies operating as SPVs or trading companies.
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Yes, however the company must be set-up as one of the following:
If you’re thinking of incorporating an existing Buy to Let property into a new limited company, we recommend you speak to an experienced tax adviser before making any decisions. Our partners at GetGround are offering all Vincent Burch clients and enquiries a free consultation – find out more here.
Our independent team of brokers at Vincent Burch Mortgage Services have access to the best limited company mortgage rates on the market, from a range of specialist lenders. We have experience in finding buy-to-let limited company mortgages for SPV and trading companies as well as private individuals seeking to transfer an existing rental property into a limited company set-up.
The rental market has become increasingly challenging over recent years, particularly for private landlords. Rising buy-to-let mortgage costs, dwindling tax relief and tightening regulations have left many wondering how to successfully adapt to this new environment.
Although rental demand remains high, the impact of falling house prices, higher costs and changes to Capital Gains Tax (CGT) means the only answer for some landlords is to sell up and leave the market. For others, the solution may be to set up a limited company, an option that has grown in popularity over recent years. According to estate agent Hamptons, the number of landlords operating as limited companies has doubled since 2017 – there are now 300,000 property companies in the UK, up from 89,757 in 2017. We estimate that 90%/most of all buy-to-let applications we receive are now from limited companies.
This increase, driven mainly by fiscal and regulatory pressures, also reflects the Government’s desire for the buy to let market to become professional. Managing a rental portfolio as a limited company may help some landlords to achieve this.
It’s important to research and understand the factors involved in setting up a limited company before making a final decision. Here, we look at some of the main points to consider.
As you can see, there are many factors to consider, so seeking financial and legal advice is essential before making your decision. But whether you choose to operate as a limited company or private landlord, those who can ride the wave of rising costs, comply with increasing regulations and work to professional standards, will be in a strong position to take advantage of the continued demand for high-quality rental properties in the future.
Deciding on if a limited company mortgage is right for you depends on various factors, such as if you plan to build a substantial property portfolio and retain profits within the company for reinvestment, the tax benefits may outweigh the complexities and cost. Higher rate tax payers may find the tax efficiencies particularly beneficial, as the corporation tax rate is lower than higher personal income tax rates.
You should also be prepared to handle the increased administrative responsibilities or incur additional costs by hiring professionals to manage the company’s finances and compliance requirements.
If you’re thinking about setting up a limited company structure to manage your property portfolio, speak to our experienced advisers at Vincent Burch Mortgage Services. We can advise you on the best finance options available and discuss the implications for your investment now and in the future. Our whole-of-market approach means we have access to lenders who are not on the high street, offering bespoke limited company buy-to-let mortgages at competitive rates.
If you purchase a residential dwelling, then usual stamp duty is payable in the same way as if you purchased in your own name. If the property is the first property that the Company owns, it is still usually treated as under second residential property for Stamp Duty purposes. However, if you purchase a commercial or mixed-use property then stamp duty is not payable.
Yes, a limited company can purchase buy-to-let property – the mortgage can be either full capital & repayment, or interest only. Interest only is most people’s preferred option for buy to let mortgages, which means you only have to pay the interest amount each month. However, just paying the interest only amount means you are not paying back the mortgage balance at the end of the term.
The main reason for purchasing a property via a limited company is due to tax efficiency. As a higher-rate taxpayer letting a property as a private individual, you pay as much as 45% tax on your rental income, and you cannot offset the mortgage costs against the rental income for tax purposes in your own name.
Please ensure you speak with an accountant who is qualified to give you tax advice, for your circumstance.
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