The stamp duty reductions have stimulated the buy to let market in two ways:
The stamp duty reductions have stimulated the buy to let market in two ways: firstly, it has really encouraged owner occupiers to buy and upsize, which has also opened a market for landlords to buy into; and secondly, we have also seen landlords using this window to transfer their portfolio into the ownership of a Limited Company set up for that purpose (SPV’s). Whilst some continue to hold back, believing that high property prices are outweighing the stamp duty reduction, a strong proportion are making the switch now.
Latest data from our Landlord research via BVA-BDRC for July to September 2020 showed a slight increase in landlords intending to purchase their next BTL property within a Limited Company structure, up 3% to 48% this quarter, showing the appetite for this type of purchase structure to be holding stable at around half of upcoming purchases.
The portfolio landlords with more than eleven properties remain significantly more likely than smaller landlords to intend to buy their next BTL property within a Limited Company (76% vs. 40%).
At Complete FS, we too have seen a real increase in Limited Company purchases too, we have the majority of these lender who accept such transactions on our panel.
Whether your clients have a portfolio of 100 properties or it’s their first limited company mortgage, we have the expertise to find the right lender.
