Never before has it been more popular to purchase Buy to Let properties in the name of a Limited Company. But is it right for you? Here’s a brief overview of the top 8 questions that I’m asked around Limited Company Buy to Let.

Should I be borrowing via a Ltd Company?

For many landlords, investing in property via a Ltd Company is more tax efficient than investing personally, especially if you are looking for mortgage finance. We do however advise you to seek professional tax advice before you make any investment decisions.

SPV or Trading Limited Company?

An SPV is a Special Purpose Vehicle set up for solely for one purpose – e.g., investing in property. A trading company is used to run a business and will have trading activities.

We can help, regardless of the type of company although there are more Buy to Let options for SPVs. Underwriting is also simpler for SPVs as it will predominantly be the directors of the company who will be assessed by the lenders. For trading company applications, the strength of the business will also be considered.

How will I be taxed?

Limited companies pay Corporation Tax, not income tax, so are not affected by the changes in tax relief for personal borrowers. However, owners of the company will pay tax on income withdrawn from the company. Make sure therefore that to get proper tax advice before proceeding.

Are Ltd Company BTL Mortgages more expensive?

Mainstream lenders who only offer mortgages to individuals will have lower cost products available. In general, the specialist BTL lenders who offer mortgages to both individuals and Ltd companies have the same pricing regardless of the borrowing vehicle.

Do Ltd Company mortgages take longer to arrange than personal applications?

In general, applications for SPVs and individuals take the same time to arrange with trading company applications taking a few days longer. The more organised you are with your supporting paperwork, the quicker the process!

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