LTD Co. Buy to Let
Purchasing buy to let property through a limited company can be a highly tax efficient strategy. Our advisors specialise in SPV mortgages and can guide you through the entire process.
The SPV advantage
Since the phasing out of mortgage interest tax relief for individual landlords (Section 24), many investors have moved to purchasing through a Special Purpose Vehicle (SPV), a limited company set up specifically to hold property.
Within a company structure, mortgage interest remains fully deductible against rental income, which can significantly improve your net return. Corporation tax is also typically lower than higher rate income tax.
How it works
A limited company buy to let mortgage works similarly to a personal buy to let mortgage, but the borrower is the limited company rather than an individual. Lenders will typically require personal guarantees from the directors.
Most lenders prefer SPV companies (set up solely for property investment with SIC code 68100 or 68209) rather than trading companies, though some specialist lenders will consider trading companies in certain circumstances.
Rates and costs
Limited company buy to let mortgages typically carry slightly higher rates than personal buy to let mortgages, reflecting the additional complexity and legal structure. However, the tax savings often far outweigh the rate difference.
Our advisors compare the whole market to find the most competitive LTD Co. rates and will help you calculate whether the company structure makes financial sense for your circumstances.
Our advisors will talk through your circumstances and find the best option, no obligation, no jargon.
Book your free call today