Buying a property within a company
Are you looking to buy a property as an investment under the umbrella of a Limited Company?
Have you been advised by a tax expert to refinance your existing buy-to-let property to a Limited Company?
If either of these apply then we can help you navigate this seemingly complex type of transaction and work alongside your tax advisor to ensure your goals are successfully achieved.
How does this work?
More and more investors are deciding to buy properties within a company and this limited company doesn’t conduct any business activity, it just holds the property, has rent coming in and expenses going out. The limited company may contain one property or more properties might be bought and held in the company over time.
In the case of a limited company owning a property, a lender will normally take a personal guarantee from each company director. This means that if the company ceases trading, the lender can pursue the directors personally for the money owing. It is therefore the responsibility of the directors to pay their debts rather than the company. The debt won’t just be written off if the company fails.
The mortgage market for limited companies is improving
A limited company can be set up today and apply for a mortgage tomorrow. The main thing to remember is that it is down to the directors to pay the debts not the limited company.
The mortgage market for limited companies is improving all the time as more investors are going down this route.
We would advise speaking with us so that we can navigate this complex transaction and work alongside your tax advisor to ensure your goals are successfully achieved.
If you are interested in weighing up the tax advantages and disadvantages of this type of mortgage then please get in touch and we can arrange a meeting or call.
*Please note, these are not regulated by the Financial Conduct Authority (FCA).