Tax efficient Buy to let mortgage Liability Partnership LLP
The planned taxation changes have sent the buy to let mortgage market off in tangents; many of the Landlords I talk to are contemplating purchasing or remortgaging under a limited company for their next project, but every now and again, I get a request for a Buy to let mortgage Liability Partnership LLP. In most instances the clients are clued up and acting on their tax advisors’ advice. Sometimes the mortgage strategies put forward involve a sequence which starts with the buy to lets placed inside a LLP with a view flip them into a Limited Company at a later stage.
I’m not a tax advisor nor naive either: recently I’ve heard the virtues of limited companies and LLPs; in the past it’s been trust and offshore British Virgin Island (BVI) mortgages, it’s not my place to comment on the best way, but I’m a very good facilitator of tax efficient mortgages whatever you and your tax advisor decide.
Buy to let mortgage Liability Partnership LLP
Please click through to see an example of a limited liability partnership buy to let mortgage product. How this can be used for tax efficient purposes will need to be discussed with a specialist tax advisor.
Niche Advice arranges mortgages but is not a Lender or a Tax Advisor and you should alway seek expert tax advice before making a decision.
Example Product Rate and Fees – Buy to Let Liability Partnership LLP
[ezcol_1fifth]Initial Rate: 4.74%[/ezcol_1fifth] [ezcol_1fifth]Subsequent: 6.24%[/ezcol_1fifth] [ezcol_3fifth_end]The overall cost for comparison 6.30% APRC[/ezcol_3fifth_end]
The total amount you must pay back, including the amount borrowed is £538.139.24
Features / description: Limited Liability Partnership buy to lets. Rental coverage 125% at 5.5% notional rate (5% for straight-swap remortgages).
| Type and initial benefit period | Fixed for 2 years |
| Minimum deposit / equity: | 30% |
| Valuation fee | £520 |
| Booking fee | £0 |
| Lender arrangement | £1995 |
| Telegraphic transfer / CHAPS fee | £30 |
| Legal fee | £500 |
| Early repayment charge | 5% of the amount repaid in the fixed period |
Niche Advice offers all types of tax efficient buy to let mortgages including those under trading LLPs or newly formed SPVs. Speak to the experts on T: 020 7993 2044 or complete the web contact form on this site.
Any property used as security, which may include your home. may be repossessed if you do not keep up repayments on your mortgage. Niche Advice arranges mortgages but is not a Lender.
Important Information
Residential and Buy to Let Mortgages
Rates current as at 28/01/2017 . The overall cost for comparison is based on a purchase price of £300,000 over a 25 year term. The Right-to-Buy example is based on a discounted purchase price of £150,000. Repayment for Residential and Interest only for Buy-to-let (unless otherwise specified). Eligibilty will depend on your own personal circumstances.
KEY – ERC = Main early repayment charge.
The purpose of this web is for information only and is based on a fictitious illustrative scenario. It does not constitute a Mortgage Offer in any way.
It is essential that you seek independent mortgage advice as a suitable product will be based on your own individual circumstances. An interest rate should not be read in isolation, and you should refer to your personal key facts illustration and Mortgage Offers for full terms and conditions. If anything is unclear it should be discussed fully with both your mortgage and legal advisors before entering into a mortgage contract with the lender.
The information contained herein is based on research through the Trigold (IRESS UK) sourcing system. When first published to this site the data is normally 24 hours behind real time, and may or may not still be available.
A first charge over your property is required as security for the loan.
The formal mortgage offer of an advance will be subject to a valuation and other satisfactory references.
Author: Payam Azadi
Payam Azadi is a partner at Niche Advice who are whole of the market Independent Mortgage Brokers. His role is very much focused on Property financing both on residential and commercial lines. To get in contact with him please click here.
