"> Buying property through a limited company | largemortgageloans.com
Mortgage Market News
Mortgage Market News » Buying property through a limited company

Buying property through a limited company

The rise in stamp duty has served to compound difficulties facing landlords as one of only the latest measures taken by Osborne to curb property investment in the rented sector. Currently, renting a property as an individual will result in a tax bill on any profit left after they have paid the mortgage interest.  However, if Osborne’s plans to squeeze more income tax out of landlords come into force, landlords and their bank balances will be put under even greater pressure.1

This has left landlords searching for ways to avoid paying the new stamp duty increase and reduce tax bills by purchasing new properties through limited companies.2

While there has been a rise in mortgage applications for Buy to Let properties overall3, lenders have found the number of enquiries coming from companies as opposed to individuals has increased dramatically, up by 15 percent on October.4 Those seeking out a mortgage through limited companies are finding more competitive deals and greater choice.5 As demand has grown for these Buy to Let mortgages, lenders are beginning to offer cheaper rates, as intermediaries seek better deals to build longer term relationships with landlords.6

Along with the benefits to be gained from borrowing and buying a property through a limited company, there are also additional factors to be taken into consideration. The individual’s circumstances, future objectives and accessibility of mortgage finance to limited companies must all be taken into account.7

  1. http://www.thisismoney.co.uk/money/news/article-3396573/How-crafty-landlords-setting-companies-dodge-Osborne-s-tax-snatch.html
  2. http://www.thisismoney.co.uk/money/news/article-3396573/How-crafty-landlords-setting-companies-dodge-Osborne-s-tax-snatch.html
  3. http://www.thisismoney.co.uk/money/buytolet/article-3415394/Buy-let-landords-storming-UK-housing-market-beat-stamp-duty-hike.html
  4. http://www.thisismoney.co.uk/money/news/article-3396573/How-crafty-landlords-setting-companies-dodge-Osborne-s-tax-snatch.html
  5. http://www.thisismoney.co.uk/money/news/article-3396573/How-crafty-landlords-setting-companies-dodge-Osborne-s-tax-snatch.html
  6. http://www.ftadviser.com/2016/01/26/mortgages/end-is-nigh-for-overcharging-on-limited-company-btl-mortgages-A9DYbcEPCNN8f5Ph6fmQ7M/article.html
  7. http://www.ftadviser.com/2016/01/19/mortgages/mortgage-products/how-to-side-step-cull-of-buy-to-let-tax-relief-TvfuIjDMMSMrrUHLdrbByK/article.html”>http://www.ftadviser.com/2016/01/19/mortgages/mortgage-products/how-to-side-step-cull-of-buy-to-let-tax-relief-TvfuIjDMMSMrrUHLdrbByK/article.html
Return to the Latest Market News

Latest Articles/News

Case Studies

According to the Office for National Statistics, by 2066 the number of UK r…

Latest/Related News

It’s safe to say that 2020 has been a challenging year for many, but the …

Press Release

The team at largemortgageloans.com has collectively been nominated for thre…

Press Coverage

Lock down your finances for the coming storms…

LML Brochure

Download our brochure to find out more about largemortgageloans.com and what we can offer

Click to Download

Sign Up

Subscribe now, to hear from us on the latest mortgage market news, products and services.

Client Testimonials

Close

Live chat with
our team now

Chat

largemortgageloans.com