Published 21 October 2019 · Last reviewed 21 October 2019 · Older article — see current rates
The other associated costs of getting a Mortgage under SPV (Special Purpose Vehicle)
This might seem like a bold statement but limited company buy to lets can literally double your legal costs. How so? Read on and find out why.
First, can I start by saying I”m not a Solicitor or Tax Advisor, I am in fact a professional Mortgage Broker and just feeding back my thoughts from my clients that have gone through the process of transferring their buy to let property into a limited company.
A limited company has its own “legal entity” and therefore must have separate legal advice. So as daft as it sounds if you own a property in your personal name and you are a shareholder (even 100%) of the take out limited company you must have a different legal representative. Its like your left hand shaking hands with your right one on the agreement of sale and purchase.
This brings me to my second point it is a “purchase”, not a “remortgage” so there is likely to be a Stamp Duty levy but you will need to discuss this with your Tax Advisor to ascertain the exact impact on you. Why is it a “purchase” well the title deeds will be updated with a new owner? For example; John Brown to Brown Property Ltd. A person to a company.
At Niche Advice we can recommend Solicitors based on our past experience for both the sale and purchase transactions. They will be separate firms. Importantly the firms we use are accustomed to limited company buy to let transactions, known and approved by the Mortgage Lenders too, and this synergy should expedite matters.
If you are after a Solicitor recommendation and want to know the full legal costs or help with the buy to let mortgage why not get in touch.