A limited company buy-to-let mortgage is where you purchase a buy-to-let property through a limited company or special purpose vehicle (SPV). For a large percentage of property investors, the tax benefits of buying a property through a limited company can be considerable (particularly for higher or additional rate taxpayers). A special purpose vehicle, also called a special purpose entity (SPE), is a subsidiary created by a parent company to isolate financial risk. Its legal status as a separate company makes its obligations secure even if the parent company goes bankrupt.

There are many positives and negatives to purchasing a buy-to-let property via a limited company as opposed to under a personal name and it largely depends on the individual’s circumstances, particularly in the light of recent and upcoming changes.

To find out about the benefits and drawbacks of limited company buy-to-let mortgages, we would always recommend speaking to a tax specialist.

Limited company buy-to-let mortgages can also be a viable option for people who want to purchase property as a collective and for those who want to distance themselves from personal liability if something goes wrong down the line. Although a lot of high street mortgage lenders don’t provide limited company buy-to-let mortgages, some more specialised vendors do. We work with a range of lenders across the whole market who might be able to help, so if you’re thinking of incorporating for buy-to-let, get in touch.