Limited Company Buy to Let

There are a range of options available for you and, for reasons that largely come down to tax efficiency, more and more investors are deciding to buy properties within a Limited Company. Our Specialist Mortgage Advisors can connect you with Mortgage Lenders who are used to working with Limited Company Buy to Let portfolios.
If your Limited Company receives money/income from any business or asset other than your Buy-to-Let property, then it is considered a Trading Company not a Special Purchase Vehicle (SPV), which most lenders cannot accept.
Mortgage assessment criteria for Limited Company Buy-to-Let mortgages varies with the personal financial history of the Director(s) often being considered and Mortgage Lenders will usually require the Director(s) to personally guarantee the debt.
Our aim is to compare the whole of the markets rates to find you the most suitable deal and save you time and money by managing your mortgage application from start to finish.
The advantages of buy-to-let mortgages for limited companies
Simple and Quick
Future Planning
Portfolio Expansion
Limited Liability
The disadvantages of purchasing a buy-to-let through a limited company
No Capital Gains Tax Allowance
When a limited company sells a property, no Capital Gains Tax (CGT) Allowance is given.
There may be a requirement to pay Corporation Tax.
There are additional costs for running a Limited Company. These costs and tasks tend to be:
- The preparation of accounts – which is a legal requirement
- Corporation Tax
- Filing at Companies House
- Legal fees
- Annual auditing – if applicable
- Accountants may also charge a higher fee when preparing accounts for Companies House.
Higher Mortgage Rates
A Reduction in the Choice of Lenders and Availability of Mortgages.
When choosing the best Buy-to-Let mortgage for your Limited company, we ensure our expertise counts and we are happy to share with you our list of recommended and trusted professionals such as insurers, tax accountants and legal professionals.
Before pursuing Limited Company Buy To Let – it is recommended you seek expert advice from a Tax Expert, to ensure it is the correct way to purchase the property and to ensure the company is set up in the correct manner.