10 Aug Financing your Property Investment Purchase via a Limited Company
Depending on your financial position and property portfolio it may be worth considering purchasing your next investment property via a Limited Company or incorporating your existing portfolio in to one.
You will need to seek advice from your Accountant or a Tax Adviser to confirm if this is the most beneficial route from a tax perspective, but more and more lenders are now offering mortgages for the Limited Company model because of the potential tax advantages:
• Lending at up to 85% loan to value (subject to satisfactory credit score and rental income achievable)
• Available for both first time and experienced Landlords • No floating charge on the company, a charge will only be taken on the property
• Mortgages available to both Special Purpose Vehicles (SPV) as well as Trading Companies
• Available to Day 1 start up companies as well as established companies
• Finance for Large Portfolios with unlimited amounts of properties
• Up to 4 directors • Mortgages for Houses in Multiple Occupation (HMOs), DSS Tenants and Corporate Lets
• Lending available to both Limited Companies and LLPs
From a Mortgage perspective, typically a Landlord borrowing in their personal name may be able to borrow around £150,000 per £1000 per calendar month in rental income achievable.
An experienced landlord trading through a limited company is likely to be able to borrow as much as £192,000 if considering a 5 year fixed rate product.
Advoco Financial are not able to give Tax Advice. We strongly recommend that you consult a Tax Specialist before applying for a buy to let mortgage
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