Your Business and Industry

Delivering timely BTL actions for limited companies

02 Nov 2022

Regulatory and tax changes have altered the way that many landlords approach individual property investments and how they structure their portfolios.

Timely Btl Article

Inevitably, this has led to more and more landlords evaluating their options and seeking ways to reduce tax burdens and other related costs in the most responsible and appropriate manner possible.

This shift in focus has led to a rise in prominence of portfolio landlords across the BTL market and in the volume of limited company lending, an area in which we have experienced a significant uplift in business over the past few years. A trend which remained evident in the latest BVA BDRC Landlord Panel research for Q3 2022.

The research outlined that just under 6 in 10 landlords now intend to purchase their next BTL property within a limited company structure, higher than levels recorded in the previous few years. From a broker perspective, this spells opportunity but it’s also important to identify which type of landlords is likely to be more active in this area.

When analysing this data further, those with larger portfolios are significantly more likely to purchase in a limited company structure, with 73% of 6+ property landlords looking to buy in this way compared to 41% of those with 1 – 5 properties.

In addition, 17% of landlord respondents hold at least one of their properties as part of a company; this increases with portfolio size with 45% of 20+ property landlords holding some or all of their portfolio in a limited company (although this is down 3% from Q2 ’22). On average, for those who have a limited company 8.5 of their properties are held in this way. 

Purchasing a buy-to-let property via a limited company structure may not always be the right option for every landlord but this is where the importance and value of a good, professional advice process comes into the equation as this remains a somewhat complex area.

Lenders who are experts in this type of lending are also demonstrating their value for intermediary partners and their landlord clients, especially during an uncertain economic and interest rate environment where service levels are coming under real pressure and clients need swift, decisive responses.

Here at Foundation Home Loans, we are currently taking just one day to review buy-to-let mortgage applications and we are also averaging just 30 seconds to answer incoming calls. So, if you are looking for a lender who you can rely on to service a host of portfolio landlord and limited company needs, then why not speak to our specialist BTL team today.

Contact your BDM