Shift in Landlords switching to Limited Companies
According to an investigation recently carried out by Precise Mortgages, there has been a large increase in the number of landlords that are planning to use Limited Company Status to carry out new purchases of rental properties in 2019.
Almost two-thirds of landlords, who own four or more properties are planning on making the switch in 2019, this is up from the 41 percent recorded at the same time in 2018.
Of the two-thirds landlords that are going to be using limited company status to purchase the properties, just 17 percent of them own between one and three properties.
One of the main reasons that the increase in property purchases through a limited company is seen at present is thought to be due to the phased reduction in mortgage interest tax relief as this currently doesn’t impact limited company landlords.
Although you think that other landlords may also follow suit, you may be surprised to know that 21 percent of landlords with four or more properties are planning the opposite and are instead looking at buying the properties as an individual.
Whether you’re an experienced property landlord, a homeowner looking to remortgage or move home or whether you’re a first-time buyer looking for your first mortgage Online Mortgage Calculators can help. We have professional Mortgage Advisers that are available to provide mortgage advice tailored to your requirements and recommend the best mortgage for you.
Give the team a call today on 03333 44 85 11 or email firstname.lastname@example.org and a member of the team will be in touch shortly.