Purchasing or Selling Rental Properties

Company Buy-to-Lets

Attwells Solicitors has a dedicated company buy-to-let team that specialises in company purchases. Therefore, you can rely on our lawyers to progress your buy-to-let purchase or sell swiftly. Call our Head Office: 01473 229888

Click here to see our fee guide.

What is a company buy-to-let?

Company buy-to-lets refer to residential properties that are purchased by companies or businesses for the purpose of letting them out to tenants. In this context, “buy-to-let” means acquiring a property with the specific intention of renting it out to generate rental income.

When buying a company buy-to-let property, the process is similar to that of purchasing any other residential property. However, you will require a specialist property lawyer to undertake the company’s due diligence. This would include any ID requirements and a review of the company structure to ensure that your company can purchase a property. We can also assist you with commercial finance such as bridging loans or mortgages.

  • Fixed Fees

  • One point of contact

  • Use straightforward language

  • We can talk in person, over the phone, via email or through Teams or Zoom

  • Offer same-day callbacks if you call before 3pm

 

Click here to see our fee guide.

The benefits to a company buy to let

What are the potential benefits of a Company Buy-to-Let?

  • Tax advantages: In some jurisdictions, companies can benefit from tax advantages when investing in property. For example, certain expenses related to the property, such as mortgage interest, repairs, and maintenance costs, may be tax-deductible, potentially reducing the company’s overall tax liability.

  • Limited liability: By holding the property within a company structure, the liability is limited to the company itself. This means that the shareholders’ personal assets are generally protected in case of any legal issues or debts related to the property.

  • Potential for rental income: Renting out the property can generate a regular income stream for the company. This income can help cover the costs associated with the property, including mortgage payments, property management fees, and maintenance expenses.

  • Long-term capital appreciation: Over time, the value of the property may appreciate, potentially resulting in capital gains for the company if it decides to sell the property in the future.

It is important to note that the benefits of buying company buy-to-lets depend on various factors and your personal circumstances.

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How do I form a buy-to-let company?

In order to set up a company, you need to register with Companies House, completing the necessary paperwork. This can be complicated, as the paperwork is often detailed and contains legal and accountant jargon. Therefore, you may find it easier and ultimately more cost-effective in the long run to ask one of our solicitors to set up your company for you. We can do this as an add-on to your conveyancing.

How do I transfer property into a company?

As the current owner, you are effectively selling your property to a company. Therefore, you will need to redeem your current mortgage, if applicable, and arrange the required finance in your company’s name. Selling the property may mean you are liable for Stamp Duty Land Tax and may have to pay Capital Gains Tax. Consequently, we would also recommend that you speak to an accountant first.

How much will my legal fees be?

The fees payable for company buy-to-lets are in accordance with the Attwells Residential Calculator, plus an additional sum of £225 plus VAT. For more information about pricing and disbursements, please click here.

Click here to see our fee guide.

Jack Allitt