Myth-busting – Electrical Safety installations Act 202011:19 AM, 3rd August 2020
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Research conducted and published by Precise Mortgages shows 38% of landlords will use limited companies to buy properties over the next year compared to 28% as individuals. This is in the wake of Section 24 mortgage interest relief restrictions.
42% of landlords with portfolios of more than four properties will be buying through a limited company, but this drops to 31% of landlords with smaller portfolios of 3 or less properties.
89% of brokers expect the number of landlords setting themselves up as a limited company to increase with the ability to continue to claim tax relief on mortgage interest seen as the main motivation.
London landlords are the most likely to be planning to purchase through a limited company.
Alan Cleary, Managing Director of Precise Mortgages, said: “Buying property within a limited company structure has become increasingly popular, particularly among larger professional landlords. Given the predicted rise in landlords switching to limited company status this year, we can expect this trend to continue.
“The contrasting levels of awareness of the PRA’s recent changes to lending criteria and the application process between small and larger portfolio landlords points to the growing professionalisation of the latter group who stand to be the most affected.
“Precise Mortgages is currently one of the most recommended specialist mortgage lenders, helping landlords to find solutions and supporting them through the process.”
Click Here to read the full report
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