No substitute for expertise on limited company buy-to-let

An excellent example of this has been the substantial increase in the number of landlords opting to build their portfolios through limited company vehicles, rather than in their own name. Doing so can allow landlords to borrow more substantial amounts due to the way that the stress tests are carried out, and property investors have been quick to recognise the opportunities this presents.

In fact, 2020 saw an explosion of limited company landlords, 41,700 buy-to-let incorporations according to Hamptons. That’s a new record, and a jump of 23% on the number of incorporations which took place in 2019.

A separate study from Hamptons has found that sell-offs from landlords has dropped to a seven-year low, which tells its own story. The desire to invest and build larger portfolios remains there; landlords are simply looking to do so in a more tax-efficient fashion by going through a limited company.

Relying on experts

There’s no escaping the fact that investing in property through a limited company is a rather more involved process than simply purchasing a buy-to-let property in your own name.

That’s particularly true when it comes to arranging mortgage finance. More and more lenders have moved into the limited company buy-to-let space, providing landlords with a greater range of choice as well as more competitive pricing. Brokers will know only too well that there can be significant differences in which lenders will consider cases, and the criteria in place, when buying through a limited company compared to a traditional buy-to-let.

It’s because of the broker’s expertise that their clients keep coming back to use them again when the time comes to expand those portfolios. Put simply, brokers have never been such vital allies for professional landlords.

A slick legal process

It’s important to understand that this requirement for expertise stretches beyond the mortgage.

Professional landlords will usually have an accountant in place for example, who is on top of how the taxation position can vary depending on how the transaction is being carried out and help them reduce their tax liabilities.

What’s more, the conveyancing process for an incorporated buy-to-let is going to be different, and so it’s important that your client uses solicitors with expertise in this area, who can handle the legal side of such a purchase in a speedy and efficient way. Using a solicitor who does not have much experience of this form of purchase can open your client up to a lengthier - and bumpier - process.

At eConveyancer we’ve put a lot of work into building a diverse panel of conveyancing firms, so that brokers and their clients always have plenty of options when it comes to finding the right solicitor for their transaction. Identifying the right conveyancer can make all the difference, not only in getting a purchase over the line, but in doing so speedily and with a minimum of stress.

Buying a property involves an awful lot of partnerships, groups of stakeholders having to work together to complete a transaction. Working with experts, who understand all of the potential hurdles a case may face - and know how to work through those hurdles - will ensure that your client enjoys the best possible experience.