Limited Company Buy to Let Mortgage
Changes recently to Buy to Let Mortgage Interest Tax Relief and the additional 3% stamp duty on second homes means more Buy-to-Let investors are considering switching to a limited company.
Although receiving professional advice from a qualified tax advisor to weigh up the pros and cons, by purchasing through a limited company, it is possible for landlords to own Buy to Let properties more tax efficiently.
It is almost identical to a regular Buy-to-Let mortgage, however, there are fewer lenders that will lend to a Limited Company at this time. As the number of landlords choosing this route increases, so will the number of mortgage providers.
The option to purchase a Buy-to-Let property using a Limited Company is open to anyone, subject to the specific current criteria of a lender.
The main advantage is in relation to tax efficiency. Any money you draw out of the business will be taxed at the prevailing rate. However, leaving money in the business and using it to renovate, refurbish or expand your portfolio, will result in the lower rate of corporation tax.
A Limited Company Buy-to-Let Mortgage 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 Limited Company Buy to Let Mortgage
At Aspire Financial Services we have a great 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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