Buy-To-Let
Buying an additional property could be a great way to provide an additional income stream and build some stability and security for your future. Year on year, we help a growing number of clients build and care for their property portfolio.
Taking a buy-to-let mortgage is a little different from buying the home that you intend to live in, and we’re here to guide you through every step of the way to getting your mortgage.
Generally, the amount you are able to borrow switches from being based on your earned income, to the rental income achievable against the chosen property. On average, you’ll also need a deposit of at least 25% of the purchase price.
At Melius, we don’t treat these applications any differently. You will get access to the same knowledge and expertise as you would if you were purchasing your own home to reside in. We may recommend discussing your plans with your accountant, tax advice is an integral part of setting up a property portfolio.
Many clients are seeking guidance from accounts and tax advisers on the best route for them to purchase a buy-to-let property. After seeking advice, some landlords are opting to purchase their properties through a limited company (typically known as an SPV – Special Purpose Vehicle).
We deal with this type of transaction regularly and are experts in this area.
The Financial Conduct Authority does not regulate some forms of Buy-To-Lets. Your Home / Property may be repossessed if you do not keep up repayments on your mortgage.
**Buying through a Limited Company**
You may have decided (after tax advice from an expert – we hope!) to buy your property through a limited company. It helps if this company has been set up specifically to buy and let houses through without any other trading element (most lenders insist on this). We will need all of the company details including the name, registered address and details of the owners and shareholders together with the bank account details.
Every company in the UK has a Section Industry Code (referred to as SIC) highlighting which sector the company trades in. The majority of lenders require your company to have one of a specific list of codes. Your adviser will check this with you in the initial stages.