More landlords turning to limited company expertise

The number of landlords planning to buy their next property within a limited company vehicle has increased significantly in the last few months, new data from Foundation Home Loans has revealed.

The intermediary-only specialist lender found that almost two-thirds of landlords are planning to make their next BTL purchase within a limited company vehicle – a significant increase on the 55% who said the same in the quarter two volume of the research.

Foundation, whose research was undertaken by BVA BDRC and carried out in September 2019 with the results based on 888 online interviews, also said the most recent results demonstrate how limited company purchases have become the preferred option for all landlords, regardless of the size of their portfolios.

The research found that 62% of landlords who own between one and 10 properties answered that they would purchase their next property via a limited company, while 65% of those with more than 11 properties had also said the same thing.

Foundation director of marketing, Jeff Knight, commented: “The rise in limited company usage by landlords shows no sign of tailing off, particularly as we have a more professional landlord community who recognise the benefits of using such a vehicle.

“It’s therefore perhaps no surprise to see a growing number of landlords signalling their intention to make their next purchase through a limited company, and as a lender it’s incredibly important that our product range reflects this – and we can offer advisers and their portfolio landlord clients access to quality products, an excellent underwriting process, and a high level of overall service that taps into the needs of limited company borrowers.”

“There has also been a notable uptick in limited company remortgaging at Foundation, and whether these are larger portfolio landlords or not, it’s quite apparent where the market has moved to, and the growing need for limited company expertise.”

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