Ltd Company BTL

Buy to let through a company

Purchasing rental property through a Special Purpose Vehicle (SPV) limited company can be more tax-efficient than buying in your personal name. We arrange mortgages for both new and existing SPV structures, working with lenders who understand company lending.

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FCA Regulated

SPV specialists

Portfolio lending

Tax-efficient

Why buy through a limited company?

Since the phased removal of mortgage interest tax relief for individual landlords (completed April 2020), many investors now hold rental property through a limited company. The company pays corporation tax on profits (currently 25%) and can offset the full mortgage interest against rental income before tax is calculated.

Whether this structure makes sense for you depends on your tax position, the size of your portfolio and your long-term plans. We do not give tax advice, but we work closely with specialist property accountants and can make introductions.

How SPV lending works

Setting up an SPV

Most lenders require a company set up specifically for property investment, with SIC codes 68100 (buying and selling) or 68209 (letting and operating). We guide you through what the lenders need.

Personal guarantees

Directors of the SPV will need to provide personal guarantees. The lender still assesses your personal credit history and income, even though the mortgage is in the company name.

Rates and deposits

Ltd Co BTL rates are broadly comparable to personal BTL rates. Deposits start at 25%. Some specialist lenders offer lower deposits for experienced landlords with strong portfolios.

Transferring existing properties

If you already own rental properties in your personal name, transferring them into a company is possible but involves a sale (which triggers stamp duty and potentially capital gains tax). This needs careful planning with a tax adviser. In many cases, it makes more sense to keep existing properties personally and purchase new ones through the company.

Portfolio growth

A company structure makes it easier to grow a portfolio because profits are taxed at corporation tax rates, leaving more cash available for deposits on the next property. We arrange mortgages for SPVs at every stage, from the first purchase to large multi-property portfolios.

Common questions

Do I need an accountant?

A limited company must file annual accounts and a corporation tax return. You will need an accountant, ideally one who specialises in property. We can recommend accountants who work with landlords.

Can I have multiple directors?

Yes. Many SPVs have two directors, often a married couple. Some lenders allow up to four directors. All directors will need to provide personal guarantees and pass credit checks.

What SIC codes do I need?

Most lenders want to see SIC code 68100 (buying and selling of own real estate) or 68209 (other letting and operating of own or leased real estate). Your accountant can add these when setting up the company.

Are the rates higher?

Ltd Co BTL rates used to carry a premium over personal BTL, but the gap has narrowed significantly. Some lenders now offer identical rates for both. We compare the full market to find the best deal.

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