What is a Limited Company BTL Mortgage? | LDN Finance

Limited Company Buy to Let FAQs

When doing business with us, you can trust that we will make the process simple and easy for you. You can rest assured that we are dedicated in finding you the best solution for your situation.

What is a limited company buy to let mortgage?

Recent tax changes, impacting buy to let properties owned in an individual’s personal name, have increased the popularity of buy to let properties being purchased through a limited company structure. Typically a new limited company, called a Special Purpose Vehicle (SPV), is set up to own the property.

What is the maximum loan to value available?

There are options up to 85% loan to value depending on the loan size, rental income and various other criteria.

Can the limited company be offshore?

Offshore companies can be considered, depending on the location and residency of the director(s) and the company.

Are there any limited company buy to let products with no ties/redemption penalties?

Yes. There are lenders who can offer two and five-year mortgage products with no early redemption penalties which can be very useful in certain situations.

Can first time buyers purchase through a limited company?

First time buyers can still purchase with a limited company but the lending criteria is different, so it is important that the necessary research is completed at an early stage. There is more focus on the individual’s financial strength who is purchasing as opposed to solely looking at the rental yield.

Do I need separate special purchase vehicles (SPVs) for each property in my portfolio?

The funding market is very competitive and purchasers have never had so many options on how to purchase portfolios. The most suitable option could be using one SPV which covers the whole portfolio giving a simple solution with one set of criteria to satisfy. However, it can also be preferential to split the portfolio across multiple SPVs to ensure the most cost effective strategy is put in place. An LDN Finance adviser would consider all options when making a recommendation on how best to proceed.

If you have any questions you would like to ask, simply contact us and we will have a dedicated member of the team get back to you.

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