Ltd Company Mortgages

A Ltd Company mortgage is a kind of Buy-To-Let mortgage, the difference being that you invest in properties as a Limited Company, rather than Individual name. If you are a landlord and have multiple properties, changing to a Limited Company can potentially save you from paying higher taxes.

Is it right for you? Here's what you need to weigh up..
Pros:

Changes in Government protocol means that landlords will only be able to claim tax relief of a maximum of 20% back on their investments between 2017 and 2020. This change is not applied to Limited Companies, making a mortgage like this a way to avoid the cut backs.

As the mortgage will be in your company's name, this makes it easier to change ownership of the properties under it. If you get an investor that wants part ownership of a property, it will be much easier to make this happen with an Ltd. Company Mortgage

Cons:

Many lenders are not as willing to offer Ltd Company mortgages, making it difficult to find a good deal.

The lenders that will offer a Ltd Company mortgage usually have much higher interest rates and fees.


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