Ryan - Underwriting Team
There’s been a big increase in the number of customers using limited companies to manage their buy to let business in recent months. In fact, according to a recent article in Mortgage Introducer1, it’s estimated that 18% of properties let out in the first half of 2018 were owned by a company rather than an individual – a record high. With more customers choosing to incorporate, we thought this would be the perfect opportunity to let you know how to transfer an existing buy to let property into a limited company structure.
We understand why you’d think the transfer should be keyed as a remortgage. Unfortunately we can’t accept it in this form; it must be keyed as a purchase. In effect, the property must be ‘sold’ to the limited company. We’ve had to turn down a lot of applications recently which have come through as remortgages.
Although you’ll have to rekey the application as a purchase, don’t worry about having to upload the documents again. We will simply move them across to the new case once it’s been submitted as a purchase to get the case moving forward as soon as possible.
Due to the tax implications associated with transferring property, it’s vital your customer seeks independent advice before deciding whether to incorporate as a limited company.
If you’d like to discuss a Limited Company case with us, please call 0800 116 4385.
Find out more about our range of Limited Company Buy to Let Mortgages, including our latest limited edition products with rates from just 2.89%2, by clicking here.
2Rates correct as of Wednesday 18th July 2018, please refer to https://www.precisemortgages.co.uk/BuyToLet for the latest product information.