Limited Company Buy to Let Mortgage

You have access to a range of Limited Company Buy to Let Mortgages from Lenders for SPV Buy to Let or Trading Company Buy to Let.

We have helped Trading Companies, Small Landlords and Portfolio Landlords invest in property with a Company buy to let.

Lenders are currently offering up to 85% Loan to Value mortgages for company buy to let purchase and remortgages.

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Can a company get a buy to let mortgage?

Yes – You can get a buy to let mortgage via a limited company in order to purchase property to rent.

Lenders like to lend to Special Purpose Vehicle (SPV) Buy to Let Companies.

Trading Companies Buy to Let Mortgages are available but have limited options. A trading Limited Company can itself own a SPV.

What is Company Buy to Let?

A Company Buy to Let is a method of financing an investment in the UK Private Rented Sector.

Buy to Let Mortgages are available in a LTD Company, LLP, Trust or your personal name.

Many choose to invest in Company Buy to Let for reasons including Tax Savings, Ease of Sale and getting investors.

You can read about the Advantages and Disadvantages of Limited Company Buy to Let.

Buy to let Mortgage for LTD company

The LTD Company can be new a special purpose vehicle with no previous experiance and obtain a Buy to let Mortgage.

The LTD Company can be existing with other properties held within it and obtain a Buy to let Mortgage.

The LTD Company can be a Trading Company, but this compicates the process and some lenders prever SPV’s. The good news is a Trading Company can create a new company – a SPV just for this purpose.

Is it hard to get a BTL in a LTD Company?

The number of lenders offering Limited Company Buy to Let Mortgages is restricted.

You need a Buy to Let Specialist Mortgage Broker to source the whole of the market to meet your requirements.

Its not generally more difficult in term of criteria than purchasing in personal name. All your personal details will be checked irrespective.

Mortgage Rates are higher in a LTD Company which will mean a tougher Rent to Interest calculation.

SPV’s and Trading Company Mortgages

Mortgage Lenders do not like to lend to Trading Companies. They see the other activities as a potential risk.

The preferred method is a Special Purpose Vehicle (SPV).

You can obtain BTL Mortgages in a Trading Company but your mortgage product options are limited.

What is a SPV Limited Company?

A Special Purpose Vehicle (SPV) is a Limited Company incorporated at Companies House as a Buy to Let Holding Company.

The lender requests this Company’s activities are limited to undertake property rental activities only.

If the company for example sold Widgets as well; that would not be a SPV but a trading company.

Creating a company for buy to let?

There is no difference in incorporating a company for this purpose.

Buy to Let Company Formation can be done online and take up to 24 hours.

The cost of incorporation start at £17+VAT an accountant may charge more.

Can I transfer properties into a LTD Company?

Yes but No.

A LTD Company is a separate legal entity so you can not transfer, it will be a sale & purchase.

It is considered as disposal for Capital Gains Tax in addition to Stamp Duty.

It can be expensive to “transfer” properties into a LTD Company. It should be an exercise with your accountant to work out cost v benefit.

Buy to Let Portfolio Mortgages?

You can build a Buy to Let Portfolio in a Limited Company.

You do not need a vast property empire to get started in LTD Company BTL Mortgages.

Buy to let mortgage on multiple properties can be obtained from one lender or a variety of lenders with different criteria.

Who owns the property?

The Company.

A LTD Company is a “separate legal entity” which obtained finance to purchase the property in its own name.

You will have a personal guarantee to the bank, that does not mean you have personal ownership rights.

So the Company owns the Property but you will own the Company based on the % of shares.

Each shareholder will need to be named on the application, provide details and a personal guarantee.

You can be 100% shareholder.

A Personal Guarantee?

With a LTD Company the mortgage application will still be based on YOU personally.

The bank will ask shareholders to sign a “Personal Guarantee”.

This guarantee will make you personally liable if the Company is unable to meet its payments.

Buying property in a company will limit your exposure to 3rd party’s with “limited liability”.

The banks personal guarantee voids that for there purposes.

Buy to Let Taxation

We can not provide Tax Advice.

There can be Tax Benefits that depend on your personal circumstances, these need to be explored by an accountant.

Setting up a company could limit your tax bill and make it easier to pass your investments to children or grandchildren.

You can for example retain profit in the Limited Company in order to pay yourself under tax thresholds.

If you own buy-to-let properties personally the rental profits are taxed at your personal tax rate, which could be as high as 45pc, depending on your other income.

Any capital gains will be taxed at either 18pc or 28pc, or a combination of the two, again depending on the level of your taxable income.

The main tax benefit of holding properties within a company is that the rental profits are taxed at 20pc if they are less than £300,000 a year. This allows profits to be reinvested in new properties at relatively benign tax rates.

So if you are looking to grow your portfolio it would be more tax-efficient to hold the properties in a company, not distribute any profits and use them instead to buy additional properties.

When you come to sell a property the capital gain will be charged at the corporation tax rate of 20pc.

List of Limited Company Buy to Let Lenders

  • Aldermore
  • Assetz Finance
  • Axis
  • Barclays
  • Cambridge and Counties
  • Fleet
  • Fondation
  • Funding Circle
  • Interbay
  • Kent Reliance
  • Keystone
  • Leeds BS
  • Metro Bank
  • Nation Counties
  • Newbury
  • Norwich & Peterborough
  • Paragon
  • Post Office
  • Precise
  • Shawbrook
  • Together