Limited Company Buy to Let Mortgage Advice
The recent changes to buy-to-let mortgage interest tax relief and the additional 3% stamp duty on second homes means more buy-to-let investors are thinking about switching to a limited company.
Although you must get tax advice to weigh up the pros and cons, if you purchase as a limited company it is possible for landlords to own buy-to-let properties and be more tax efficient.
It is almost identical to a regular BTL mortgage. Although there are fewer lenders that will lend to a Ltd Co., as the numbers of landlords choosing this route increases, so too do the number of mortgage providers.
The option to purchase a Buy to Let property using a Ltd Company is open to anyone, subject to the specific current criteria of a lender.
The main advantage to be gained is in relation to tax efficiency. While any money you draw out of the business will be taxed at the prevailing rate, by leaving money in the business and using it to renovate, refurbish or expand your portfolio, you will pay the lower rate of corporation tax.
A Buy to Let Mortgage for a limited company may be slightly more complicated to set up and interest rates are not as attractive as those available for mortgages in a personal name.
Additional running costs will include the preparation of accounts, company / corporation tax calculations for HMRC, filing at Companies House, legal fees, and annual auditing if applicable
Mortgage Advice for Ltd Co Buy to Lets
At Aspire Financial Services we have a team of specialist advisers with access to the whole of the market. Discuss your needs with us in detail and you can be confident that a suitable lender and mortgage deal can be found for you.
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