Why many Brighton landlords use a company
Brighton property is expensive compared with most of Sussex, and rents, while high, do not always keep pace with prices. That makes the rent test central to any Brighton purchase. Because many lenders use a lower rent test for limited companies than for higher-rate personal borrowers, a company structure can sometimes support a larger loan on the same rent, which is one reason many Brighton investors buy through an SPV.
The city's HMO market is also well suited to companies. Shared houses for students and young professionals around Lewes Road, Hanover and Elm Grove are often held in company names, and owners use HMO and multi-unit lenders that look at the room-by-room income. Any new HMO needs planning permission under the city-wide Article 4 direction, as well as the right licence.
Brighton landlords also need to keep up with licensing: selective licensing in four wards until 2029, city-wide additional HMO licensing, and a further designation for Central Hove and Regency that is currently on hold. The rules apply equally to companies and individuals.
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: refinancing an HMO into a company
This is an illustrative example, not a real case. A landlord buys a new five-bedroom licensed HMO near Lewes Road through an SPV. The lender assesses the room rents, the licence and the planning use, and the company takes a five-year fixed HMO mortgage. Because the company's rent test is less demanding than the landlord's personal one, the loan works on a lower deposit than it would have in the landlord's own name.
Limited company buy-to-let advice in Brighton
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 in Hastings and most Brighton clients work with us by phone or video, with documents uploaded securely; you are also welcome at our Hastings office.
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
Is it cheaper to buy a Brighton buy-to-let through a company?
Not necessarily. Company mortgage rates and fees can be slightly higher, and the tax benefit depends on your situation. A company can help with the rent test and with how profits are taxed, so talk to your accountant first.
Can a limited company own a Brighton HMO?
Yes. Many do. You will still need planning permission for the HMO use where the Article 4 direction applies, the right licence, and a lender that accepts company borrowers and HMOs.
Is a limited company buy-to-let mortgage regulated?
No. Mortgages to limited companies are not regulated by the FCA. We still give you the same written recommendation and explain the costs and risks.
Do I need to set up a new company?
Not always, but most lenders prefer a special purpose vehicle that only holds property. If you already have a trading company, a smaller group of lenders may still help. Speak to your accountant before setting one up so the shareholdings suit your plans.
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.
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.
