More and more landlords who are looking to purchase a buy-to-let property over the next 12 months intend to do so via a limited company vehicle.

The latest landlord research from Foundation Home Loans – in conjunction with BVA BDRC - suggested that while only 14 per cent of landlords said they would be seeking to purchase property over the next 12 months, over half of those (55 per cent) would do so via a limited company, up from 53 per cent in the Q1 iteration of the research.  24 per cent of those who said they would be purchasing would do so as an individual – down from 26 per cent three months ago, while 13 per cent said it would depend on their circumstances at the time.

A limited company status continues to appeal most strongly to those with 4+ properties, with smaller portfolio landlords much more likely to take a decision on the best strategy for them at the time of purchase. Although it’s fair to say that awareness regarding the benefits attached to this kind of offering has grown rapidly in recent times.

Limited company lending has certainly captured the attention of the BTL market, and many specialist lenders, such as Foundation Home Loans, are adjusting their offerings to meet the needs of all types of landlords. Whether this relates to the size of the portfolio, the type of properties, their equity position, other income or an exit strategy - landlords come with a differing set of circumstances and finances. And it’s important for intermediaries to remember that a one-size-fits-all approach simply doesn’t work in what remains a complex sector.

It’s clear that the majority of those landlords who will be purchasing over the next 12 months, intend to do so via a limited company and a growing number of landlords are willing to take the stamp duty hit in order to move properties from their individual name. So, when considering a lender in this area, make sure that you are placing your BTL clients with a market specialist who incorporates transparent products, consistent lending decisions, excellent customer service and limited company lending expertise in their propositions. 

Call TFC Homeloans now to find out the options for your landlord clients

ARTICLE BY FOUNDATION HOME LOANS