Incorporating your Portfolio
Are You Looking To Incorporate Your Buy to Let Portfolio And Move To A Limited Company?
Moving your personally owned buy to let property to a limited company SPV is a job requiring very careful early planning, both from a tax advice and mortgage perspective, especially for larger portfolios. Due to penal Section 24 tax relief restrictions which are only in the early stages and will get tougher over the next few years, you are certainly right to consider all of your options and conduct your due diligence enlisting the help of the right tax and mortgage partners.
The longevity of your property business depends on it.
Of the many transactions that we have undertaken in this capacity over the years, most of our clients have utilised professional tax planning with a big four accountant for peace of mind, especially where complex Section 162 relief is being professionally sought and utilised. Your taxation advice must be robust.
If Section 162 relief cannot be achieved you must be aware that since a new purchase must take place in a wholly different entity, ie a limited company, this could trigger a CGT liability and also would incur SDLT on the purchase prices. Again, please seek professional qualified tax advice.
Of course when it comes to refinancing it’s a difficult enough decision choosing a mortgage broker for one transaction, so to pick a broker for larger numbers of mortgages at once requires a lot of faith and trust. The confidence that you are in safe hands can only be built up by enlisting our help and hearing our early advice and tips when taking you through this process, before making a decision on which way to turn.
Our help has subsequently been enlisted a number of times where mortgage brokers had started this process without fully comprehending the planning and skills required and the magnitude of the task at hand.
So Why Would You Ask Ourselves To Undertake Our Due Diligence And Mortgage Research And What Can You Expect If You Do?
- We’ll liaise with our underwriters at the lenders who are best positioned in terms of competitive finance early in the process to discover their lending appetite based on the portfolio as a whole, you as a client and propose to you a structure of which property should be financed where and on what terms. This allows us to identify potential pain points and have them pre-agreed with the key decision makers at the lender.
- Check your liability – We’ll check with you regards current early repayment penalties that you may have on your existing personal borrowing.
- Overall Cost Comparison and fees checker – We’ll factor in the your payments, arrangement fees, valuation costs, legal fees including lender legals into our cost comparisons for you. You can be confident you are coming away with the best possible deal for your circumstances and preferences.
- Detail – We’ll quote you the full details and nitty, gritty of each and every mortgage across the recommendation.
- Structure – We’ll include options on how to structure the portfolio to minimise costs and keep simpler if possible and makes sense to do so, for example we may be able to move your overall finance amount over to smaller numbers of property, loan to value permitting. This will reduce valuation, arrangement and legal fees and leave property free to gear in the future, as and when needed.
- Security Level – We’ll advise you on the level of security a lender requires, e.g. debenture/fixed/floating charge and the implications of such.
- Longevity – We will advise you on whether you can switch to a new deal with the same provider when your initial benefit period ends. This can save you huge amounts of time and money in fees on an ongoing basis long after our initial advice.
- We’ll mitigate your upfront costs protecting your initial cash outlay – It’s very easy to secure accepted decisions and pay for a multiple mortgage valuations only to find that the lender or lenders aren’t happy lending to so many properties in one area or a few individual properties, this could create an exposure risk. We’ll check this upfront and refer all properties to the lenders and their valuation teams to ensure they’re happy at no cost to you, before you outlay those fees.
- Experience – As a broker sitting squarely in the limited company space and dealing with many limited company lenders every day… we have access to specific dedicated underwriters working for ourselves only, access to key decision makers and credit committees, this can help smooth the transition to limited company and take the stress from the transaction.
- Time – We’ll give you the time needed every step of the way until the portfolio has completed and the purchase into Ltd Company name is complete and you can start enjoying the benefits that an SPV owned portfolio brings.
Why Use The Buy to Let Broker?
- Human experts backed by tech.
- Unparalleled knowledge in the specialist market.
- Unlimited access to SPV lenders.
- Advice based on true total cost including rate and all fees.
- Intricate knowledge of ‘portfolio landlord’ criteria.
- Exclusive & semi-exclusive schemes.
- Experience – it’s what we know and who we know.
- Access to decision makers – underwriters, credit managers & senior personnel.
- No credit checks to get qualified quotes to your inbox.
- Borrow more. Utilise your own personal income to push loan amount limits.
- Access to big 4 accountant and specialist conveyancing.
- Zero sales pressure, digest your quotes in your own time.
Want To Know More About Incorporating Your Portfolio?
If you’d like to know more about what we’d suggest for you, please give us a call for a confidential discussion about the challenge ahead on You can also call us 08009499410 or head here to request quotes. There’s no obligation and we’ll assist as much as possible in giving you a head start.