BTL for a Ltd Company

56cheffy

Would this have to be a commercial mortgage?

Are BTL's for a ltd company more difficult to get and are they more expensive.

Thanks

ACG

What is it you are wanting to do?
If you are wanting to buy a residential property in the name of a new limited company which is set up to buy the BTLs then you can get a limited company BTL. They are no more difficult to get than a normal BTL, but there are less of them around, so typically that means they will be more expensive.

There may also be a little more work involved, personal guarantees and possibly the need for legal advice on that personal guarantee. But in the main if you can get one, you can get the other. The limited company also need to be set up correctly - by that I mean it needs the correct company category code.

sparkey1

BTL Limited company is different to Commercial. Commercial tending to be property that involves business rates.


BTL Limited Company mortgages often have more requirements. For example you may get asked to provide Board Meeting minutes. You may be restricted in using a panel solicitor. (KRBS Ltd Company mortgages for example restrict you to a dozen or so solicitors). You will more often than not have to provide personal guarentees, often using a different solicitor.

Ranges of mortgages are less and usually slightly more. However it will mean you wont get caught up in clause 24.

amnblog

Lending is available, but the more important questions are ones you should be asking your Accountant as to whether buying under a Limited Company is right for you.

56cheffy

ACG wrote: »

What is it you are wanting to do?

I have 3 BTL properties that I want to sell to my son over the next 3 years.

I only did it as a 'hobby'.

With the changes in tax laws/rules I read that it was more beneficial for him to to set up a ltd company.

Obviously he will be taking advice from an accountant and financial adviser, so just looking for some initial advice.

Thanks