Big ticket landlords flocking to limited company buy-to-let
Two in three (64%) landlords with more than four properties plan to buy using a limited company structure this year, research from Precise Mortgages found.
Only 17% of landlords with one to three properties plan to use limited company status.
Alan Cleary, managing director of Precise Mortgages, said: “The buy-to-let market is changing and the switch to greater use of limited company status is one aspect of the development underlining the increasing maturity of the sector.
“There are good reasons why limited company buy-to-let is dominating the purchase market and we expect that will continue to be the case this year and next.
“Brokers and customers however need expert specialist support when buying as a limited company or considering switching to limited company status as there are considerable costs involved.”
Three quarters (73%) of buy-to-let landlords think the lending criteria and portfolio application process changes introduced by the Prudential Regulation Authority are making it more difficult to secure mortgages, while 57% said the changes will slow applications down.