Whether to hold your buy to let mortgage in York personally or through a limited company is something many landlords are now considering.

It’s a topic that’s gained a lot of interest, particularly following changes to mortgage interest tax relief and the way rental income is taxed.

While some investors may find benefits in using a limited company, for others, the associated costs and implications may not be worthwhile.

The decision isn’t always straightforward and often depends on a range of personal and financial factors.

Why might a limited company be considered?

There are several reasons landlords explore the idea of transferring their property into a Special Purpose Vehicle (SPV) company.

Some are looking for greater tax efficiency, especially higher-rate taxpayers.

Others may be thinking ahead to future investment plans, inheritance planning, or how best to manage multiple properties under one structure.

Operating through a company can offer more flexibility in how profits are handled, and some landlords prefer the structure it provides for managing a growing portfolio.

However, it’s worth bearing in mind that this route won’t be right for everyone. For some, staying in personal names may be the simpler and more cost-effective choice.

What do mortgage lenders think?

When it comes to buy to let mortgages for limited companies, lenders tend to have more specific criteria.

Applications are usually only accepted from SPVs set up solely for property purposes, and a relevant SIC code must be used when registering the business.

Mortgage options for SPVs have become more widely available in recent years, though they can sometimes come with slightly higher interest rates or fees.

For certain landlords, the long-term financial planning benefits may outweigh these differences.

Is it worth transferring properties you already own?

Transferring existing properties into a limited company is a more complex decision.

It’s not a paper exercise; it involves a legal sale, often triggering costs such as Stamp Duty Land Tax (SDLT), Capital Gains Tax (CGT), legal fees, and new mortgage valuations.

Because of these costs, many landlords choose to keep their current properties in personal names and consider using a limited company for any future purchases.

That approach may be more manageable, especially if the aim is to gradually build a portfolio over time.

Of course, there are situations where a full transfer might make sense, but these tend to be specific and based on wider financial planning considerations.

Points to Keep in Mind

There are pros and cons to each approach.

Some landlords may benefit from the potential tax advantages of SPV ownership, while others prefer the flexibility and simplicity of remaining in their personal name.

What works best can vary depending on your income, future plans, and how you intend to run your buy to let in York.

It’s not just about tax either, ongoing administrative responsibilities, access to mortgage products, and personal cash flow needs all play a part in shaping the right decision.

The Importance of Professional Guidance

Because this is such a complex area, it’s important to seek advice from professionals who understand both the mortgage and tax implications.

A mortgage broker in York can guide you through lender criteria and help you understand your financing options, while a tax advisor can explain how different ownership structures could affect your overall liabilities.

There isn’t a universal answer. It’s about what works for you, and that often starts with the right conversation.

Date Last Edited: June 17, 2025