Latest research from a specialist lender claims that over the next twelve months almost 40% of landlords will be mortgaging BTL properties as limited companies, with only 26% of BTL acquisitions being made by individuals.
Those landlords who have a portfolio of four plus rented properties, 42% will be mortgaging a new property via a limited company; however it drops down to 31% of landlords with three properties.
The research states that London’s BTL investors will more than likely be making additions through the use of a limited company. The specialist lender which commissioned the study says it shows that more and more landlords are switching to become limited companies.
Nearly 89% of the mortgage brokers that took part in the research said that they fully expect to see a very high increase in landlords setting themselves up as limited companies; having the opportunity to claim back mortgage interest tax relief will be the prime motivator. From those landlords who took part in the survey, approximately 15% were planning to expand their portfolios and 23% of them are intending to buy three or more properties over the coming year.
The survey also states that those landlords with large portfolios are far savvier of the recent lending criteria and application processes that the Prudential Regulation Authority has recently imposed on the sector.