Personal to Limited Company Buy to Let Mortgage for Large Portfolio Landlord

The Client: An experienced professional landlord with a large buy to let portfolio. Having sought professional tax advice, she wanted to incorporate her personally owned portfolio into a limited company as it would be more tax-efficient. 

The Property: A two-bedroom detached barn-conversion located in a rural location in Cornwall. The property benefited from stunning countryside views and plenty of character.

The Finance: As our client was purchasing her existing buy to let property into her new SPV, she required a limited company buy to let mortgage. Using the existing equity in the property as a deposit through a director’s loan, she only needed a 48% LTV mortgage.

The Challenge: With at least 20 buy to let properties in the background and her sole income coming from property, our choice of lenders was significantly reduced. With fewer lenders to choose from, sourcing a competitive limited company buy to let mortgage rate would be more of a challenge too.

The Solution: As a specialist buy to let mortgage broker, we are accustomed to dealing with complex cases such as this one, and work closely with the lenders that can handle the underwriting. We quickly shortlisted those buy to let lenders that accept portfolio landlords and are comfortable with income only coming from property. From there, we set about sourcing a suitable rate that would be financially beneficial for our client. Here are the details:

Property Details

Property value: £335,000

Loan amount: £160,000

LTV: 48%

Rate: 3.14% five-year fixed

Term: 25 years, interest-only

Mortgage payment: £423 per calendar month

Lender arrangement fee: £1,995

Rental income:  £850 per calendar month

Gross yield: 3.0%

Application: SPV Limited Company

14th July 2021