Company buy-to-let around Battle
Landlords in Battle tend to own a small number of high-quality homes rather than large portfolios: family houses in town, cottages in the surrounding villages and some holiday lets. For higher-rate taxpayers adding to their portfolio, a limited company can be worth considering, particularly as personal mortgage interest relief is limited to a basic-rate tax credit.
Property type matters as much as structure. Listed buildings in Battle's conservation area, period cottages with older construction and rural homes with land or agricultural restrictions all reduce the number of lenders available, and that is true for companies as well as individuals. Some lenders are happy to lend to SPVs on holiday lets; others only on assured shorthold or periodic tenancies.
The Battle area also sees smaller development and conversion projects, such as barns and outbuildings converted into homes. These typically need development or bridging finance first, with a company buy-to-let mortgage to refinance once the homes are complete and let.
Personal name or limited company?
The decision is mainly a tax one, so it belongs with your accountant. In broad terms, a company can treat mortgage interest as a cost against rental profit, while individual landlords only get a basic-rate tax credit. Against that, extracting profit from a company is taxed again, company mortgages can carry slightly higher rates or fees, and the 5% additional-property stamp duty surcharge still applies.
Transferring properties you own personally into a company is normally a sale for tax purposes, so it is rarely a quick fix. Once you know the structure you want, we arrange the limited company buy-to-let finance around it.
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How limited company buy-to-let lending works
A typical company buy-to-let application is made in the name of an SPV, a company set up only to buy, let and manage property (SIC codes 68100, 68209 or 68320 are the usual ones). Each director, and usually anyone owning 20% or more, gives a personal guarantee and goes through credit checks.
Because company profits are not taxed at personal higher rates, many lenders use a lower rent test, often around 125%, so the same rent can support more borrowing. Expect to need at least a 25% deposit. For more on structures, HMOs and multi-unit freehold blocks, see our limited company and SPV guide.
Example: a barn conversion held in a company
This is an illustrative example, not a real case. A local couple's SPV buys a barn near Battle with planning permission for conversion into a home. Development finance funds the purchase and works. When the property is finished and let on a periodic tenancy, the company refinances onto a five-year fixed company buy-to-let mortgage, with both directors giving personal guarantees.
Limited company buy-to-let advice in Battle
Limited company lending is a specialist area, and the right structure matters as much as the rate. We are directly authorised by the Financial Conduct Authority (FRN 925926) and rated 5.0 stars from 109 Google reviews. We are based at 17 Havelock Road in Hastings and can visit you at home around Hastings and Bexhill, or talk by phone or video.
Our broker fee is £599. For a purchase it is payable when your mortgage offer is issued; for a remortgage to a new lender it is charged on completion. Where there is adverse credit the fee is £999, or up to 1% of the loan. We do not charge a fee for product transfers with your existing lender, and we confirm any fee in writing before we start. Contact us or call 01424 444597 to talk it through.
Frequently asked questions
Can my company buy a listed property in Battle?
Yes, from lenders that accept listed buildings. The valuation may take longer, and the lender will want to know about condition and any restrictions on alterations.
Can I convert a barn near Battle and hold it in a company?
Yes. A conversion is usually funded with development or bridging finance, then refinanced onto a company buy-to-let mortgage once it is complete and let.
Will I have to give a personal guarantee?
Almost always. Lenders usually ask each director, and often any shareholder with 20% or more, for a personal guarantee. That means you could be personally liable if the company cannot repay, so take independent legal advice.
Can I move properties I already own into my company?
You can, but it is normally treated as a sale, so capital gains tax and stamp duty may apply, and it needs a new mortgage in the company's name. Get tax advice first; we can then arrange the company mortgage.
Important: Limited company buy-to-let mortgages are not regulated by the Financial Conduct Authority. Your property may be repossessed if you do not keep up repayments on your mortgage. Directors are usually asked for personal guarantees, which can put personal assets at risk. The FCA does not regulate tax advice, so please take advice from an accountant before buying through a company.
Transparent Mortgage Services is a trading style of Transparent Financial Associates Limited, which is directly authorised and regulated by the Financial Conduct Authority (FRN 925926). 17 Havelock Road, Hastings, East Sussex TN34 1BP. Telephone 01424 444597.
