Limited Company Buy To Let
Limited Company Buy To Let - Small Business Mortgages
Some people choose to invest in a buy to let property in the name of a limited company, in part due to tax reasons. These limited company buy to let deals are done through the individual's small business and are a part of that business' books. Through this the borrower can avoid capital gains tax - the tax you would normally have to pay on rental profits. Of course a limited company buy to let is subject to taxes such as corporation tax, but if done right, there are significant advantages to buying property through a business.
There are a few lenders who are happy to lend limited company buy to let mortgages, but because of the technicality of the deals, lending options can be severely limited. As a result, the deals might have a lot less competitive rates, have stricter criteria to adhere to and could demand a lot more from the borrower and the business. This does not mean that limited company buy to let should be avoided - it was created for a reason. Many people with small businesses may want to use the property as a part of the company, or use the property as a means for safe profit investment. It just means even more care has to be taken to make sure the property works with the business, not against it.
Some borrowers will want to set up special purpose vehicle limited company buy to let. SPV limited company buy to let is registered to solely buy, manage and buy to let property. This is definitely for the serious landlord - someone who has big ideas, who wants to establish a brand new company that will work as a buy to let business. Again, this is a complicated and possibly risky limited company buy to let option, but at the same time one that could make someone millions.
Whatever you and your business want a limited company buy to let mortgage for, you will need a professional business partner - a mortgage adviser. You may be a successful small business person, but you may not knows the ins and outs of the limited company buy to let market. An adviser does - and they will know exactly how to use your money and your business for maximum results.
