Incorporating principal private residences and buy-to-let investment properties and enabling professional investors to ring-fence property transactions, using a suitable special purpose vehicle (SPV) for ownership.
Notes – Investors with multiple properties are sometimes advised by their accountant to hold future investments in a limited company for tax advantages.
Some lenders can allow existing trading Companies to hold investment properties, whereas others specialise in lending to newly formed SPVs.
In some situations, clients have previously been advised to hold their principal main residence and associated borrowings, in a limited company for tax reasons. These arrangements have historically been provided by their own bank, on sometimes uncompetitive commercial terms. Due to a change in the market, exclusive terms are available in such cases to reduce overall interest costs.
|
|
 |