BTL2022: Almost a third of active BTLs in limited companies

Matt McCullough (pictured), national sales manager at Aldermore Bank said 29 per cent of active buy-to-lets are sat in limited companies, a three per cent uplift from last year.

UK buy to let companies hold a total of 583,000 mortgaged properties, or almost a third of all outstanding buy-to-let mortgages.

As the percentage of financing costs reduced to 0 per cent in the tax year ended 2021, one out of every two buy-to-let mortgages were taken out by landlords with a company.

McCullough outlined the substantial benefits of using these tax efficient wrappers, although he warned against adding children’s names as shareholders, however well-intended, because it is illegal.

He said the Aldermore limited company product allows up to six shareholders or directors, day one trading within a Special Purpose Vehicle (SPV) wrapper, fees assisted legals, and product switches among other benefits including capital raising.