Ltd Company Buy to Lets are available to applicants who wish to use a Ltd Company to buy or re-mortgage property for let. Ltd Companies used to for Buy to Let are treated as a separate entity from the Company Directors. You can use an SPV Ltd Company or a Trading Company as well….
Using a Ltd Company for Buy to Let.
You can use a Ltd Company for Buy to Let in much the same way as you can in your own name. The key difference is the Ltd Company will own the property, not you personally. This can have advantages and disadvantages, which your Mortgage Broker and your Accountant can advise you on.
Most people will use a Ltd Company as a way to maybe mitigate the new more onerous taxing of Buy to Lets held in your own name. However, everyone’s circumstances are different, so again take the appropriate tax advice from your Accountant.
Lenders will still assess the Directors of the Ltd company when considering an application for a Buy to Let purchase or re-mortgage. Each lender has their own underwriting and criteria requirements. At Mortgage Advisor Glasgow we can help you find the best lender based on your needs.
The majority of lenders will require you to have set up your Ltd Company as a SPV, which stands for Special Purpose Vehicle.
What is a SPV?
An SPV is set specifically to buy and hold Buy to Let property within a Ltd Company structure. Normally the SPV should have the correct SIC Codes set up as well. Most lenders will require you have at least one or more of the following SIC codes, 68100, 68201, 68209, 68320.
The Importance of SIC codes.
Having the wrong SIC codes can cause issues with some lenders and they may refuse to lend if you do not have the correct SIC codes. Using the SIC codes I have listed above will normally be fine, if in doubt get in touch and we can check your SIC codes for you.
Can I Use a Trading Company for Ltd Company Buy to Let?
Yes, there are a few lenders that will allow you to use a Trading Company, that it is not an SPV. Please call us to discuss your requirements as we have access to lenders that will lend to Trading Ltd companies such as your own trading business.
How much Deposit do I need for a Ltd Buy to Let Company?
In most cases the minimum deposit will be 25% for both SPV companies and Trading companies. There maybe options for 20% deposit, but will depend on the market at the time, feel free to get in touch and we can check for you.
Summary.
The above is brief and concise overview of Ltd Company Buy to Lets. For more information and to discuss your own situation, please call us on the number above or complete the short contact form below.
Michael Markey CeMap,CeRER