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buying as an individual or as a LTD company
crisp
Posts: 435 Forumite
is there much difference in terms of lenders on offer and rates between buying in my own name or that of a uk ltd company?
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Comments
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If you are buying as a limited company then it will be a business loan and the bank will lend on the basis of the company being able to afford it and what the property is going to be used for. It would also have different taxation rules applied to it.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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If you're talking buy-to-let, there are several lenders who will lend to ltd companies, as long as they are SPVs, or Capital Home Loans will lend to any ltd company. Rates do tend to be a bit higher, and criteria more restrictive. I had an issue with a Mortgage Express case, as they insist on instructing their own solicitors, in addition to the clients, at the clients expense - another £400!I am a Mortgage AdviserYou should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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I presume that you are talking Buy to Let here. The only difference is that you'll be limited to fewer lenders as not all of them lend to limited companies (and I mean quite severely). MortgagesInc mentions Capital Home Loans who are probably the most well known for this type of application in broker circles, but there are others. Woolwich will also take apps for these and at the moment I consider their rates better than CHLs. For example (I'm not saying this is right for you) but they have a Base Rate Tracker +0.49% for life (so no costly switching after a couple of years) upto 85% LTV and rental cover of 105% of pay rate and NO Early Repayment Charges. Handy in these uncertain times.
You'll also have to speak to a broker as most lenders do not deal directly with the public (such as Capital Home Loans).
Regards0 -
i currently have 3 BTL properties with between 17% and 25% equity in them. i was thinking about transferring them in a ltd company and applying for a drawdown facility for further BTL purchases. it was something mentioned by a broker. he told me there would be no tax implications, but thats another point.0
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There would be tax implications as you would be selling them to the limited company. CGT would apply.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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