Limited company buy-to-let mortgage advice

More buy-to-let investors are now considering switching to a limited company when buying properties. Mainly because of recent changes to tax relief for buy-to-let mortgages and the additional 3% stamp duty on second homes.

It may be more tax efficient for you to own buy-to-let properties as a limited company. However, you must first obtain tax advice so that you can consider all the pros and cons. The mortgage would be almost identical to a standard buy-to-let mortgage. There are fewer lenders that will lend to a limited company, but the numbers of lenders is increasing mainly driven by the fact that this route is becoming more popular with landlords.

The option to purchase a buy-to-let property using a limited company is open to anyone, providing however, you can meet the specific current criteria for the chosen lender. This includes ensuring the company has been setup using the correct SIC code.

Tax efficiency is the main advantage. By leaving money in the business and using it to refurbish, renovate or expand your portfolio, means you will pay the lower rate of corporation tax. Any money taken out of the business is then taxed at the current appropriate rate.

Interest rates are currently not as attractive as those available via a standard mortgage in a personal name and may be more complicated to set up.
Additional running costs will include:

• Preparation of accounts
• Company/corporation tax calculations for HMRC
• Filing at Companies House
• Legal fees
• Annual auditing if applicable.

Mortgage Advice for limited company buy-to-lets

At Aspire Financial Services we have a team of specialist advisers with access to the whole of the market. Discuss your needs with us in detail and you can be confident that a suitable lender and mortgage deal can be found for you.

Aspire Financial Services are a team of specialist advisers with access to the whole of the market. You can be confident that, by appointing us, we will discuss your needs in detail then identify the most suitable lender and mortgage available.

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