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Buy to Let

New landlord options from Kent Reliance and Interbay Commercial

Christina Hoghton
Written By:
Christina Hoghton
Posted:
Updated:
19/03/2024

Landlords looking to incorporate buy-to-let loans into a company structure will find new options available to them

Kent Reliance and InterBay Commercial, both part of OneSavings Bank, have announced a new policy for landlords who wish to transfer their existing buy-to-let property from their individual name into a company or limited liability partnership structure.

Following the announcement in last year’s summer Budget of a phased change to tax relief on mortgage interest for landlords from 2017 onwards, incorporation of a limited company has been seen by some as the preferred means of holding investment property.

Recent research by Kent Reliance suggested limited company lending across the UK could exceed 56,000 in 2016, up from 30,000 in 2014.

In response to this demand, the new policy will allow both new and existing customers to transfer a property from their sole name into a Limited Company or limited liability partnership, subject to current policy requirements being satisfied.

A key feature is that the lenders will accept directors’ loans or gifted equity, subject to an insolvency indemnity policy.

Take tax advice

Borrowers are urged to seek professional advice from a suitably qualified professional prior to entering into any transaction. This is essential to understand any costs or tax liabilities that may be triggered as a result of moving property into a company structure.

Adrian Moloney, sales director for OneSavings Bank, said: “The Chancellor’s changes introduced a clear need for products designed specifically for property investors who were moving their investments into a limited company, and needed their mortgage finance to reflect this. Our new criteria provide a solution for professional investors who wish to manage their portfolios through a limited company structure. We’ve also made sure that the process is as quick and efficient as possible.”