Who it suits
When a company structure comes up
Landlords building or restructuring a portfolio, company directors investing through an existing business, and clients moving property between personal and company ownership.
Whether it is the right structure for you is primarily a tax question. It depends on your other income, your longer-term plans and what you intend to do with the rental profit. You should take advice from an accountant or tax adviser before deciding. We will then arrange the lending to fit whatever structure you and they settle on.
What to expect
How company lending differs
The mechanics are not difficult, but they are different.
- A narrower panel of lenders than personal buy-to-let
- Rates that are often slightly higher, though the gap has narrowed
- Personal guarantees from the directors in almost all cases
- Lenders wanting the correct SIC codes registered against the company
- More paperwork, including company accounts and director information
- Legal costs that are usually higher than a personal purchase
Common scenarios
Situations we see regularly
Selling a personally held property into your own company. Worth knowing this is a sale, so Stamp Duty and possibly Capital Gains Tax apply. Your accountant will model this.
Higher risk property. A flat above a shop, or a property that mainstream lenders will not consider.
Expatriate clients. Purchasing or remortgaging UK property through a company from overseas.
Most buy to let mortgages are not regulated by the Financial Conduct Authority.
Taxation advice is not regulated by the Financial Conduct Authority.
Your property may be repossessed if you do not keep up repayments on your mortgage.