Guide to buy under a limited company to let

To purchase or mortgage buy-to-let properties under a limited company, you will need to follow these steps:

1. Incorporate a limited company

The first step is to set up a limited company to act as the borrower. This can be done online through Companies House or with the help of a professional service.

2. Open a business bank account

Once the company is set up, you will need to open a business bank account. This will be used to manage all the rental income and expenses related to the property.

3. Apply for a mortgage

You can apply for a buy-to-let mortgage for the limited company. The lender will assess the affordability of the company and the property's rental income potential to determine if the mortgage can be approved.

4.Purchase the property

Once the mortgage is approved, you can purchase the property in the name of the limited company.

5. Manage the property

The limited company will be responsible for managing the property, including finding tenants, collecting rent, and paying expenses.

It is important to note that purchasing or mortgaging buy-to-let properties under a limited company may have different tax implications compared to owning the property personally. Therefore, it is recommended to seek professional advice from an accountant or tax advisor to ensure that the investment is structured in the most tax-efficient way.