Company buy-to-let in Worthing
Worthing has attracted investors from Brighton and London in recent years, because property prices are generally lower than in Brighton while the town has good transport links and a growing professional population. HMRC's office at Teville Gate House, opened in 2021, added a large employer by the station, and Worthing Hospital is another major source of tenants.
For company landlords, Worthing offers a mix of strategies. Victorian and Edwardian houses in central Worthing and Heene were often split into flats long ago, and freehold buildings with several flats can sometimes be financed on one multi-unit freehold block mortgage. Larger houses near the town centre are used as HMOs, subject to licensing and planning. Suburban family homes in Broadwater, Tarring and Durrington suit single lets.
At the time of writing, Adur & Worthing Councils run mandatory HMO licensing only, with no additional scheme. Company landlords are bound by the same licensing and Renters' Rights Act rules as individuals.
Personal name or limited company?
Buying through a limited company is not automatically better. Company landlords can usually offset mortgage interest in full as a business cost and pay corporation tax on profits, but taking money out of the company as salary or dividends is taxed again. The 5% stamp duty surcharge applies to companies too. For higher-rate taxpayers building a portfolio, a company often makes sense; for a basic-rate taxpayer buying one property, personal ownership may be simpler.
Moving properties you already own into a company is treated as a sale, which can trigger capital gains tax and stamp duty. Your accountant should advise on the structure; we then find the limited company buy-to-let mortgage that fits it.
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How limited company buy-to-let lending works
Lenders mainly want to see three things: a suitable company, usually an SPV with property SIC codes such as 68100, 68209 or 68320; directors and shareholders with acceptable credit who will sign personal guarantees; and rent that covers the mortgage by the lender's margin, commonly around 125% at its test rate.
Deposits generally start at 25%. A brand-new company with no accounts is not usually a problem, because the lender looks at the people behind it. Specialist properties, such as HMOs and multi-unit blocks, have their own criteria, which we cover in our SPV and HMO lending guide.
Example: a first SPV purchase
This is an illustrative example, not a real case. A higher-rate taxpayer who already owns two buy-to-lets in their own name sets up an SPV, on their accountant's advice, to buy a third property in Broadwater. The lender assesses the rent at its company rent test, which supports a larger loan than the personal test would. The landlord gives a personal guarantee, and the existing properties stay in their own name.
Limited company buy-to-let advice in Worthing
Russell Braiden CeMAP and the team arrange company buy-to-let lending across Sussex and Kent. 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 Worthing 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 I keep my existing Worthing buy-to-lets in my own name and buy new ones in a company?
Yes. Many landlords do this. Each lender will look at your whole portfolio, personal and company, when assessing a new application.
Do Worthing HMOs need a licence if owned by a company?
Yes, if they meet the mandatory licensing rules (five or more people from more than one household). Ownership does not change the rules.
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.
Can a brand-new company get a mortgage?
Yes. Many lenders are happy to lend to a newly formed SPV with no accounts, because they assess the directors' income, credit and experience instead.
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.
