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  1. #1
    Looking to get a straight answer about 2 queries which I am confused about...I am embarking on buying my 3rd BTL and due to the new tax rules etc am investigating doing this under a limited company. Had a quick chat with my financial adviser who said:

    1. I would need to set up 1 company per property as it is a non-trading company.
    He did mention you can have multiple properties under one company but usually when this is done its with one lender. Also buying a property under a company limits options of lenders, and rates and fees are also higher.

    Anyone heard of this, is this true?


    2. He also mentioned the additional 3% stamp duty is not payable if the property is under the stamp duty threshold even if it is an additional property.

    Is this true?

    I am doing further research (internet) and speaking to friends but would like a definitive answer. I have never known him to be wrong and he has always given me good advice in the past but this seems dubious.

    Can anyone shed some light?

  2. #2

    Buying Houses Under a Limited Company

    1. Not a straight answer but Every Ltd company property owned I have talked to has one company for multiple properties. The only exception to this was someone that had joint ownership with more than one person. In that case he had a separate company for each partnership. Limited company mortgages are likely to be higher rates anyway but I don't think it has anything to do with multiple mortgage providers. Speak with a good specialist mortgage broker rather than a jack of all trades financial advisor for more expert advice.

  3. #3
    The new stamp duty thresholds are nasty.
    The HMRC have a calculator which shows you very clearly what you have to pay.

  4. #4
    i have 5 btl properties in my ltd and have also done a buy-refurb-sell. My accountant said i should do a sepearte trading and BTL if i am doing multiple buy-sell's but its ok if its infrequent and there is a good reason

  5. #5
    1. It is best to have a new company per property as if you buy a further property and want to put it under the same company it is likely you will need to use the same lender that lent for the original property. This obviously means having to take their rates and fees as they are at the time which may not be the most competitive. My IFA did further research and is still looking into it but explained that is the jist of it. Also spoke with an estate agent friend who owns many BTL's and looked into transferring them to a company name, decided against it for now but any new BTL's he purchases he is starting a new company per property. So no change from the original findings.

  6. #6
    That doesn't seem right to me. That's like saying an individual with multiple properties has to use same lender, and that is not the case. This is the first time I have ever seen this advice given. Have you spoken to a corporate mortgage broker for their opinion?

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