Mellow FinancialLimited company buy to let.
Buying through a limited company is more complex than in your own name. We find the lenders and structures that fit what you're trying to achieve.
Why a company?
Why more landlords buy through a company.
Since tax relief on buy to let mortgage interest was replaced with a 20% tax credit for properties held personally, buying through a limited company has grown, especially for higher rate taxpayers and anyone planning ahead for inheritance tax.
Loan calculations are often more generous for companies. Rates are usually higher than in personal names, but the company can offset its mortgage interest against rental income, and profits are taxed at corporation tax rates.
Getting the structure wrong can be costly, so take tax advice before you commit.
What we can access
Options for company landlords.
- Mortgages up to 85% loan to value
- Generous interest cover (ICR) calculations
- Special purpose vehicles (SPVs) with an acceptable SIC code
- UK and overseas companies, including non-resident directors
- Existing equity and inter-company loans used as deposits
- Share structures that can include family members
The Financial Conduct Authority does not regulate some forms of buy to let mortgage. Your property may be repossessed if you do not keep up repayments on your mortgage. Personal guarantees from directors are usually required.
Questions
Frequently asked.
What is a limited company buy to let mortgage?
A mortgage for buying and letting property through a limited company rather than in your own name.
What are the tax differences?
A company can offset its mortgage interest against rental income, which individuals can no longer do in full. Profits are taxed at corporation tax rates. Whether this works out better for you depends on your circumstances, so take tax advice.
Can I move a property I own personally into a company?
Yes, but it's treated as a sale, so stamp duty and capital gains tax may apply. Weigh the upfront cost against the long-term benefit, with a tax adviser.
Do I need an established company?
No. Many lenders are happy to lend to a newly formed special purpose vehicle set up just to hold property.
Are company buy to let mortgages more expensive?
Rates and fees can be a little higher. Whether the tax position makes up for that depends on your situation, and we'll help you look at the numbers.