[col type=”one-third”]
Our property investment expert is Jeni Browne, Sales Director at
Mortgages for Business
www.mortgagesforbusiness.co.uk
Tel: 0345 345 6788
[/col]
[col type=”two-third last”]
Question
Setting up as a limited company
Aside from having a minimum number of properties, what are the requirements for setting up as a limited company? I have been a landlord for over 10 years and own five buy-to-lets (all mortgaged) but am keen to reap the tax benefits of being a limited company.
Answer
This is a great question! There are no requirements for setting up a limited company per se; you simply go to the Companies House website, complete the form and pay c£20.
When you come to do your first tax return, you’ll need to confirm that the company is a property letting company with the correct SIC codes (68100 and 68209 and the most popular).
Applying for a mortgage through a limited company is equally straight forward and much like personal buy-to-let applications.
I’d recommend asking a broker to run through the process’s finer details, but as an experienced landlord, I’m sure you won’t have a problem.
[hr style=”single”]
Question
Can I convert my buy-to-let to a holiday let?
I don’t know if this is possible but I own a buy-to-let in a seaside town and with the whole staycation boom I would like to cash in on the holiday let market instead.
I have had my buy-to-let five year deal now for almost two-years and my tenants are due to move at the end of their contract. Can I just continue with the same mortgage or will I need to switch?
Answer
You’re right, we are about to see a very busy season in the UK holiday let industry, so I can see why you’d want in on the action!
The best place to start in this situation is to speak to your existing mortgage lender to check whether they are happy with this; some lenders are comfortable with holiday let properties, and some are not.
If they accept holiday let properties, you may still need to switch mortgage products depending on the criteria. If not, then a broker will be able to help you source a buy-to-let lender who will.
[hr style=”single”]
Question
House conversion – one or two mortgages?
Okay so this is a bit of an odd one! I am purchasing a house which I intend to convert into two flats to rent separately. I am a builder by trade and have loads of contacts so I cannot foresee the work being expensive or problematic so I am planning to take out a buy-to-let mortgage. But will I need one or two mortgages?
Obviously I am purchasing one home but eventually it will provide two income streams? Is there a specialist product I need to take out? Thanks for your advice. I am a complete novice to buy-to-let!
Answer
This is a tricky one to answer, as there are lots of elements to consider here. Firstly, it’s unlikely that a buy to let lender will be comfortable with you purchasing one property, and then asking to split their security into two separate properties.
I’d recommend that you use a bridging loan to complete the purchase and the necessary works.
Once the works are complete (and you have two separate properties), you will have a few buy-to-let mortgage choices.
You can either leave the flats on the same legal title or put long leases on each separate unit. If you go with the former, there are plenty of mortgage options for you here as it’ll be what’s known as a multi-unit freehold block; sounds complex but any decent broker will be able to help you here.
If you put a lease on each flat, they will have their own entry on the land registry and will need different mortgages. There are pros and cons to each option, so I would recommend speaking to broker and accounts about which is the most financially beneficial and suitable for you.
[hr style=”single”]
Question
Later life buy-to-let mortgages – do they exist?
Are there any ‘later life’ mortgage options for older landlords? I am 65 and my husband is 62 and we are keen to invest in a buy-to-let but wondered if any tailored products existed for people in our circumstances? We own our own property outright and have quite a substantial deposit to place down – 60%. But we still need a mortgage and a bit of guidance! It’s all such a maze.
Answer
In the world of buy-to-let, believe me, you are spring chickens! The majority of buy-to-let mortgages will happily run until your 75th birthday, but there are still many lenders with no age limits at all!
A good broker will be able to help you find the right lender, and I wouldn’t expect your age to be a stumbling block at all. Good luck!
[hr style=”single”]
[/col]
