Submitted on Wednesday 08th February 2012
Limited Company Buy to Lets
Who uses a limited company?
Individuals buy property in limited companies for a number of reasons including, tax planning, as a joint venture, to achieve limited liability or to use surplus cash in an already successfully trading limited company.Many companies need to refinance property to exit bank development or investment finance or to capital raise for better rates or new projects.UK lenders are currently lukewarm in the UK buy to let market and this is also true when raising funds for limited companies. This is why expert help is vital to find which companies currently support this sector. Although there are not dozens of competitive lenders the ones that are there can in most cases service customer needs.
What are the considerations?
It is not only about rates and how much you can borrow. You need to make sure that your structures are acceptable to lenders. You also need to make sure that you are happy with their legal requirements. Some lenders will want a personal guarantee and a floating charge over other company assets and a charge over rental income. Sometimes this may be worth giving in order to achieve better terms. Some lenders will only offer capital and interest while others will still do interest only. The type of property being financed and its location may be imprortant. If you are a property developer some companies will not work with you. Most companies, but not all, will be interested in your wider income and asset and liability position. All companies will be interested in your credit record and your experience.
Rates and LTV
Rates are availble from 2.5% above Libor and loan to values of up to 75% are currently available with more available with additional security.
To explore the whole market in one exercise please email danny@stirlingpartners.com or call on 0207 580 1555 and ask for Danny O Sullivan
