Limited Company Buy to Lets

Is It Better to Own Property Through a Company?

Since the introduction of Section 24 of the Finance Act, landlords who own property personally can no longer claim full mortgage interest relief. Owning property through a limited company allows you to offset up to 20% of your mortgage interest against profits, which can make a company structure more efficient for higher-rate taxpayers.

Are Buy-to-Let Mortgages for Limited Companies More Expensive?

Limited company Buy-to-Let mortgages are usually slightly more expensive than personal ones, but the gap has narrowed in recent years. You’ll generally pay a higher interest rate, but for many investors, the potential tax savings outweigh the additional cost.

How Do I Set Up a Limited Company or SPV for Buy-to-Let?

It’s best to speak to a qualified tax adviser or accountant before setting up your limited company or SPV. Once your company is registered and has a business bank account, a specialist broker like GPS Financial can guide you through the best limited company mortgage options.

What Is the Lending Criteria for a Limited Company Buy-to-Let?

The process is similar to a personal Buy-to-Let mortgage; lenders still assess the directors and shareholders for affordability and credit history.
However, the company’s structure and trading activity also come into play. The Standard Industrial Classification (SIC) code used when setting up your company must match what lenders expect for a property investment business (commonly 68209 – “Other letting and operating of own or leased real estate”).

For larger investors, group structures can also be used, where multiple companies sit under a holding company. This can make it easier to move assets within the group without triggering additional stamp duty, though not all lenders accept this arrangement.

What Documents Do You Need?

Lenders usually require:

• Certificate of Incorporation
• Company bank account details
• Proof of ID and address for directors and shareholders