Looking to purchase a company property or expand your portfolio? Here you’ll find more information and how we can help you.
Limited Company buy to let mortgages have become an increasingly popular choice for property investors in recent years. This financial arrangement involves purchasing and managing rental properties through a limited company, as opposed to owning them in your personal name.
Our specialist knowledge allows us to support experienced limited company buy to let mortgages and first-time investors alike, helping you secure the right funding to grow a successful property portfolio.
Rated 5 Stars on Google
Fill out our enquiry form and we’ll contact you to book a free call with one of our mortgage advisers.
Your Path to Successful Property Investment
Limited companies may benefit from more favourable tax treatment compared to individual landlords. This can include lower rates of taxation on rental income and capital gains.
Interest on mortgage payments may still be fully deductible for limited companies, while individual landlords may face restrictions on mortgage interest deductibility.
A Limited Company Buy to Let Mortgage is a financing arrangement where rental properties are owned and managed through a limited company rather than as an individual landlord. The limited company acts as the legal entity responsible for the properties.
Limited companies can benefit from more favourable tax treatment, including potentially lower rates of taxation on rental income and capital gains. Interest on mortgage payments may also be fully deductible, which can result in significant tax savings compared to individual ownership.
While there are many advantages, there are also considerations such as administrative overheads, setup costs, and potentially, slightly higher mortgage rates. Additionally, limited companies involve additional compliance requirements and reporting.
Lenders assess the directors and/or shareholders in the same way as a BTL being purchased by an individual as the lender is still lending to the directors and/or shareholders, not the company.
Setting up a limited company involves registering it with Companies House, appointing directors and completing the necessary legal paperwork. It’s advisable to consult with an accountant and mortgage adviser for guidance on structuring the company.
The company should be a Sole Purpose Vehicle (SPV) solely for the use of renting or selling property.
The Standard Industry Classification (SIC) code should be as follows: ‐
68209 Other letting and operating of own or leased real estate – this is typically used for property rentals
68100 Buying and selling of own real estate – this is typically used for
trading (buying and selling)
Many lenders require this SIC code to be showing on Companies House records at the time of the application.
Lenders are happy to lend to new companies; you do not need to have existing company accounts.
A personal guarantee is a written document that borrowers will need to sign to say that they understand the legal and
financial responsibilities they are committing to on behalf of the company.
This document needs to be
signed in front of a solicitor that is independent of the one acting for the limited company. It can be a
different partner at the same firm of solicitors, however some lenders and solicitors do not allow this,
so it is worth checking beforehand. Some solicitors will simply include it in their overall cost of dealing with a limited company, but you may need to find a separate solicitor and pay them accordingly.
The cost for this extra‐legal work varies hugely from £100 to around £500.
Keys Mortgages has the expertise to help you navigate the complexities of limited company buy to let arrangements. We have access to a growing network of lenders, including those offering specialised products for limited companies.
With our guidance and expertise, navigating the complexities of limited company buy to let arrangements becomes seamless, allowing you to maximise the potential of your property investments within a limited company framework.
What makes us Specialist Property Finance Advisers
Secure a mortgage deal today and we'll keep watch on your lender's rates. If a better, suitable deal becomes available, we'll let you know and help you switch.
We have amassed many positive reviews on Google and glowing testimonials from our clients over the years which we are very proud of.
We have excellent relationships with all of our banks and lenders. We're often asked for our opinions on the property market and current mortgage products.
We know that the mortgage market can move quickly, so it can be frustrating to see your lender release a better deal than your current one.
The Keys Mortgages Rate Watch Guarantee is designed to give you peace of mind, knowing you always have the best deal and protect you against missing opportunities of lower rates.
We guarantee to keep watch on your chosen lender’s rates and if a better deal becomes available, we’ll let you know and ask the lender to change product without having to start over (lender restrictions may apply). This is free and included as part of our service.
“I’ve had the privilege of working closely with Cheryl Williams and Amy Zakary over an extensive period, both in my professional role at Precise Mortgages as Sales Director and as a landlord with 32-years experience. In the realms of buy-to-let mortgages locating a broker with genuine specialisation is no small feat.
My confidence in Keys Mortgages is unswerving. Drawing from my experience conducting training at Precise Mortgages, I can vouch for Cheryl and Amy’s exceptional knowledge. Their commitment to delivering a quality service, fused with unwavering expertise, forms the bedrock of their five-star service proposition.”
A mortgage is a loan used to purchase a home. The property you’re buying serves as security for the loan. You make regular payments, which include both principal (the loan amount) and interest, over a specified period. As you make payments, you gradually own more of the property.
There are various mortgage types, including fixed-rate mortgages (interest remains constant), variable-rate mortgages (interest fluctuates), tracker mortgages (linked to the Bank of England base rate), and more. Your mortgage broker can help you find the right option based on your financial situation and preferences.
The amount you can borrow depends on factors like your income, credit history, expenses, and the lender’s criteria. Lenders typically use a multiple of your income or affordability calculations to determine the maximum loan amount.
An agreement in principle (AIP) is a preliminary indication from a lender that you’re eligible for a mortgage up to a certain amount. It’s not a guarantee but can help you understand your budget. A formal mortgage offer is a commitment from the lender to provide the specified amount at agreed-upon terms after a thorough verification process.
Aside from the property’s price, you’ll need to budget for additional costs like arrangement fees, valuation fees, legal fees, stamp duty (if applicable) and potentially broker fees. Your mortgage broker can provide a breakdown of these costs.
A mortgage broker acts as an intermediary between you and potential lenders. They analyse your financial situation, help you find suitable mortgage options, and guide you through the application process. Their expertise can save you time, ensure you’re aware of available options, and increase your chances of securing a favourable mortgage deal.
Send us your enquiry today and one of our friendly advisers will call you back for a free consultation at a time that suits you. Hassle-free with no obligations.
