Company buy-to-let in Horsham
Horsham is a commuter town with relatively high prices, and many landlords are higher-rate taxpayers. As with other higher-value towns, the rent test often limits how much can be borrowed, and many lenders use a lower rent test for limited companies, which is one reason company ownership is common among Horsham investors.
New homes are a big part of the local picture. Large estates have been built around Broadbridge Heath, Southwater and the north of the town, and Horsham Enterprise Park on the former Novartis site is being redeveloped with new homes alongside business space. Buying new-build homes through a company can bring extra lender checks on new-build criteria and sometimes lower maximum loans.
Period properties near the town centre, family homes in Roffey and Holbrook, and flats near the station all suit different strategies. Company landlords face the same licensing and Renters' Rights Act rules as individuals, and lenders apply the same property checks.
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: adding a new-build to a company portfolio
This is an illustrative example, not a real case. An SPV with three existing let houses buys a new-build flat in Horsham. The lender limits new-build flats to a lower loan-to-value than older properties, so the company puts down a larger deposit. The lender also reviews the existing portfolio and the directors' personal guarantees.
Limited company buy-to-let advice in Horsham
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 Horsham 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
Can my company buy a new-build home in Horsham?
Yes. Some lenders limit the loan-to-value on new-build properties, especially flats, and may need more information from the developer.
Is a company better for a Horsham buy-to-let?
It depends on your tax position and plans. Many higher-rate taxpayers find a company helps with the rent test. Your accountant should advise on the tax side.
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.
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.
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.
