LIMITED COMPANY BUY TO LET

Empower Your Investment

A Limited Company Buy-to-Let mortgage is designed for property investors who wish to purchase rental properties through a limited company structure. This type of mortgage allows investors to benefit from potential tax advantages and asset protection provided by operating under a limited company. This mortgage type can be advantageous for seasoned investors looking to maximize returns while benefiting from the limited company structure.

Let’s answer your questions!

  • The majority of lenders will allow you to apply for a mortgage as soon as the Limited company has been opened. The lender will carry out the necessary checks against the directors of the limited company, who as part of the purchase will need to seek independent legal advice and sign a personal guarantee

  • Deposit levels are very similar to that of a buy to let that is purchased in personal name. A 20% or 25% deposit is the norm for a Buy to Let mortgage. The higher the deposit, the better the rate you receive.

  • We would always advise you to seek advice from an accountant or tax advisor in this situation. There are lenders that would allow an inter-company loan to fund the new purchase. Please speak to one of advisory team as there are also lenders that would not allow the deposit to be sourced via this method.

  • Yes. The new Ltd company will need to have a company bank account and the monthly mortgage payments will need to come out of this account. All property transactions can then go through the Ltd company business account, keeping this separate from your personal income and expenditure.

  • Yes. The Ltd company will be a trading company and will be treated the same as any other trading company. This will mean that you will need to file accounts and the necessary annual paperwork with companies house. We advise that you seek advice from a tax advisor prior to proceeding with any purchase. This will help you understand the ongoing costs of running a Ltd company.

  • Yes. Please seek further clarity from your solicitor/conveyancer in relation to this matter. Stamp duty would be payable as well as an additional surcharge of 3% of the full purchase price.