Why Go Through a Limited Company?

Here are some reasons why landlords often prefer the limited company route:

Tax Efficiency: Mortgage interest relief has been reduced for individuals but remains available for limited companies.

Future-Proofing: It can be easier to transfer property ownership (ie. family members) through shares in a company, rather than as an individual asset.

Profit Flexibility: You can leave profits in the company to reinvest, or pay yourself in a way that suits your financial goals.  

                                What to Expect from Lenders

When applying for a limited company mortgage, lenders assess both the company and the directors and shareholders. They will also look closely at…..

The Company Type: Most lenders prefer Special Purpose Vehicles (SPVs) set up for property letting. Always check your new company has the correct SIC code, this is usually 68100 or 68209 *Always check this. 

Personal Guarantees: Directors often need to provide personal guarantees for the loan.

Extra Costs: Interest rates and fees can be higher than standard buy-to-let mortgages, but the long-term tax benefits often outweigh these.

         So you still think you’re reading to talk it through ??