0208 364 3444
This week, we look into the growing popularity of buy to let limited companies and explore how our award-winning brokers are supporting professional landlords in transitioning to improved rates through product switches and remortgages.
Benefits of Using an SPV Limited Company for Property Investment
Investing through a (SPV) Special Purpose Vehicle, a limited company set up specifically for property investment, offers significant tax advantages that can greatly enhance the efficiency of property portfolios.
Unlike personal property investments, an SPV allows you to claim 100% of your mortgage interest as an allowable expense, maximising tax relief. It is also important to consider that the income and capital gains from properties owned through an SPV are subject to corporation tax, which is typically lower than personal tax rates. (Always seek professional tax advice)
The attractiveness of SPV structures for buy-to-let investments is reflected in the rising number of limited companies set up for this purpose. According to data from Hamptons, a record 50,004 limited buy-to-let companies were established in the UK last year, an increase from the previous record in 2022.
Refinancing for Portfolio Landlords
Recently, our team worked diligently to assist a portfolio landlord in refinancing 10 properties held within an SPV limited company. This strategic move meant the landlord was able to reduce his monthly mortgage payments by a considerable amount.
Get in Touch Today
With lenders continuing to make reductions to their rates this is the perfect time to speak to us about your mortgage options.
Get in touch now on 0208 364 3444 alternatively click here to schedule a free consultation call.