Using a company to buy a rental property

caronoel

Currently have a few rentals that my wife and I own personally.

We are considering expanding the portfolio, and are obviously cognizant of the impending tax changes on rental income.

I was considering the possibility of buying the additional properties through a company

A few questions:
1) Is it harder to get a BTL mortgage through a company, rather than as an individual investor?
2) Any recommendations for a decent accountant to handle the monthly / annual accounts?

Thanks

WHA

Yes, lending to limited companies is different. Loan to equity ratios tend to be lower so you'll need a higher deposit. You'll probably need to establish a good relationship with a decent mortgage broker rather than trying to use the High Street and internet. Interest rates may also be a little higher.

As for accountants, it's basic bread and butter work, so your typical local accountant should be fine. It's not really a specialist field.

martinsurrey

http://www.fleetmortgages.co.uk/products-p-9.html

they do a range of Ltd Co products, as do others, but as mentioned above they are broker only, get to know a BTL whole of market broker.

The ltd co mortgage will be backed by a personal guarantee by the directors, making you personally liable if the company folds.