Personal to Limited Company Buy to Let Purchase for Professional Landlord

Personal to Limited Company Buy to Let Purchase for Professional Landlord

28.04.21 | Written by: Luke Worrell

The Client: A professional landlord with four buy to let properties owned in both his personal name and an SPV limited company.

The Property: Our client owned the four-bedroom terraced house as a buy to let in his personal name. Situated in Greater London, the house was within walking distance of the local train station and close to plenty of green spaces.

The Finance: After consulting with his accountant, our client wanted to ‘transfer’ his personally owned buy to let property into his limited company. As a higher rate taxpayer, this would be a more tax-efficient investment structure for him in the long term. ‘Transferring’ personally owned property into a limited company is a full sale and purchase transaction; therefore, our client required a limited company buy to let mortgage to facilitate the purchase.

The Challenge: Although it would be our client’s limited company underwritten for the mortgage, lenders would still consider our client’s personal income. As a professional landlord, his only income came from the rental income of his four buy to let properties. As some lenders do not feel comfortable lending to professional landlords, it would restrict our choice of available buy to let mortgages.

The Solution: As an independent specialist buy to let mortgage broker, we are able to source finance from a variety of specialist lenders. With many professional landlord clients, we knew which buy to let lenders would consider this case and quickly started searching for a competitive mortgage rate. A suitable rate found, including a free valuation and cashback, our client was thrilled to receive a mortgage offer in just a few weeks!  Here are the details:

Property value: £410,000

Loan amount: £307,500

LTV: 75%

Rate: 3.34% five-year fixed

Term: 25 years, interest-only

Lender arrangement fee: £1,995

Rental Income: £1,700 per calendar month

Mortgage Payment: £861 per calendar month

Application: SPV Limited Company

Consultant: Luke Worrell, 01732 471684

ANY PROPERTY USED AS SECURITY, WHICH MAY INCLUDE YOUR HOME, MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

NB: ANY PROPERTY USED AS SECURITY, WHICH MAY INCLUDE YOUR HOME, MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

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