- Client: UK nationals with a buy-to-let portfolio
- Challenge: Refinancing properties following a change in ownership structure
- Structure: Limited company
Enness was approached by UK-based landlords looking to refinance a portfolio of buy-to-let properties that had been moved into a limited company structure.
The properties had originally been held in the clients’ personal names before being transferred into a partnership and subsequently incorporated into a limited company. However, the existing mortgages remained in the clients’ personal names, creating a more complicated refinancing position.
The clients needed a lender that could understand the history of the properties and the way ownership had changed rather than treating the refinancing as a straightforward new purchase. This was important because the structure involved several stages of ownership, while the underlying properties and existing borrowing had already been in place.
Enness reviewed the circumstances and approached specialist lenders with an appetite for more complex limited company buy-to-let structures. The aim was to find a lender that could accommodate the existing ownership history while providing the clients with a competitive refinancing solution.
A suitable specialist lender was identified and agreed to refinance the properties within the limited company structure. The lender was comfortable with the background to the ownership and was able to provide competitive terms for the portfolio.
The resulting structure gave the clients a clearer long-term financing arrangement for their investment portfolio and allowed the borrowing to sit alongside the company structure they had established for their property investments.
Cases involving the transfer of property between personal, partnership and company ownership can require careful consideration, particularly where existing mortgages remain in place. The lending options available can vary considerably depending on the ownership history, property portfolio and proposed structure.
For landlords operating through a company, limited company buy-to-let mortgages can provide a route to financing investment property through a corporate structure. Where an existing portfolio needs to be restructured or refinanced, remortgage solutions may also be worth exploring.
If you are looking to refinance a buy-to-let portfolio following a change in ownership structure, speak to a mortgage specialist to discuss your requirements.
Disclaimer:
This case study is for illustrative purposes only and does not constitute financial, legal or tax advice. Changes to property ownership can have tax and legal implications, including potential stamp duty land tax considerations. Clients should obtain appropriate independent tax and legal advice before restructuring property ownership or borrowing. Finance is subject to status, underwriting, valuation and lender criteria.
Information contained in our case studies is for market and illustrative purposes only. In some cases, these may be made up of multiple cases and are for illustrative purposes only.
Some case studies are made up of enquiries that have come into the business, not all business completes, and the posting of a case study does not represent a completed piece of business.
Property values can fall as well as rise, and you may not get back the amount originally invested. Property investments can be illiquid and may take time to sell. Where borrowing is used, your property may be repossessed if you do not keep up repayments on a mortgage or other loan secured against it.
