Company Buy to Let Purchases
Purchasing a property under a company also referred to as a Special Purpose Vehicle (SPV) is becoming more and more common, this is largely due to the Government introducing changes in 2015 for claiming mortgage interest on buy to let properties. From April 2020 individuals who own buy to let properties on their personal names will not be able to claim mortgage interest as an expense however if owned as a limited company, mortgage interest can be claimed as allowable expense.
If you are looking to purchase property under a company, it is important you obtain tax and accounting advice from the outset. With regards to Stamp Duty Land Tax (SDLT), the higher rate will be payable even if you qualify as a first-time buyer personally.
There are now a growing number of mortgage lenders backing investors with company buy to let mortgages. Most lenders will require you as director or shareholder in the company to provide a personal guarantee as additional security to the property itself.
Our lawyers have many years of experience acting for companies purchasing property and furthermore since the recent upturn. We are on specialist limited company panels for mortgage lenders and have experience dealing with their requirements.
We also offer Independent Legal Advice (ILA) where personal guarantees are required for directors or shareholders.
Contact our commercial property solicitors in Ruislip, Middlesex
Call our commercial property team today on 020 3856 8156 or complete our online enquiry form and we will get back in touch.