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Matt Bee

Do properties held within a limited company count towards the 4 mortgaged BTL properties you need to be a portfolio landlord?

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Hi

The blog post below suggests: "If the landlord already owns under four buy to let properties in their sole name, they can still purchase a new property in a limited company name and continue to benefit from not being considered a portfolio landlord for the existing properties that are owned. This will allow for existing properties to be remortgaged using a non-portfolio landlord criteria potentially achieving more competitive products."

https://www.lendlord.io/post/how-limited-company-owned-properties-can-affect-a-lender-s-criteria

Is that correct? My understanding until now has been that properties held within a limited company owned by an individual would also count towards that individual's number of properties for the portfolio landlord test.

Hoping someone can clarify this for me.

Many thanks

Matt

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That determination is not black or white its a bit grey. Lenders implement the rules there own way.

I wouldn't worry about being classed as a portfolio landlord or not. It's just a bit more paperwork that the lenders typically ask for anyway. As lenders do their checks anyway, it was one of those regulatory things that was built up and when implemented came down to not much difference.

You do have lenders, that have caps of background properties (though they always had). The same applies, some ignore background BTL in a SPV and others do not.


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