Limited Company Buy to Lets on increase
Research by Business Development Research Consultants has revealed that of the 738 landlords surveyed more than half will use limited companies for purchases, according to Precise Mortgages. More than twice the amount of landlords who intend to buy as an individual.
Limited companies were most popular among landlords with a portfolio of 11 or more, with 71% using them for purchases.
Limited company status has become more attractive to landlords due to the phased reduction in mortgage interest tax relief.
However, Buy to Let stress test calculations for limited company applications are also lower than for most individual landlord applications.
Alan Cleary, managing director of Precise Mortgages, said: “Despite the challenges in the market, professional landlords have still managed to grow their portfolios over the past year with the use of limited companies, and it will continue to be the most preferred purchase route particularly for those with larger portfolios.
“The increased use of limited company status is further evidence of how the buy-to-let market is changing and demonstrates how brokers and their clients need expert specialist support when buying as a limited company or considering switching.”