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

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

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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Mortgages for Business Ltd is registered
in England and Wales No. 2502713.

Registered office:
17 Kings Hill Avenue,
Kings Hill, West Malling,
ME19 4UA.

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Mortgages for Business Ltd is authorised and regulated by the Finance Conduct Authority (No. 313537) to transact regulated mortgages. We are a credit broker, not a lender. We work with the whole of market in sourcing a lender for you; we may receive a commission from the lender, and this amount varies between lenders. The FCA does not regulate some investment mortgage contracts. Mortgages for Business Ltd is a founding member of the National Association of Commercial Finance Brokers, the body that promotes best practice within the commercial finance industry. Telephone calls may be monitored or recorded for training purposes.

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