Bespoke Finance

Is Conveyancing more expensive for Limited Company Buy to Let?

With thanks to George Osborne and his tax plans, the number of property investors calling Bespoke Finance asking for Limited Company Mortgages has risen.

I am no expert in tax - but - I understand it is the benefit of retained profits in the LTD Company allowing property investors to lower there tax return therefore perhaps keeping out of the 40% bracket.

I was asked a question "Why are solicitors more expensive for Company Buy to Let?" the short answer is it is more comprehensive searches.

Luckily for us Edward Goldsmith, partner, Goldsmith Williams outlined that conveyancers acting for lenders must conduct extra duedligence including:

The lender’s lawyers must also comply with the requirements of Companies House to register the charge within the prescribed 21 days and satisfy any Land Registry requirements to register the property.

Whether establishing a limited company will be beneficial for the individual buy-to-let landlord will depend on their circumstances, both financial and legal.

Some items Edward Goldsmith outlines become less burdensome if you purchase in a Special Purpose Vehicle established by your Mortgage Broker at time of application; for instance using standard Memorandum and Articles, a new SPV will have no borrowings, no annual returns or accounts and the shareholders/directors all clearly party to the transaction.

Whilst simpler with an Special Purpose Vehicle Buy to Let - the checks will still be required.

Find out more about Advantages and Disadvantages of Buy to Let Limited Company Mortgages.

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