BTL mortgage as individual and rent back to Ltd?

[chazza]

Hi. Newbie here. This site is awesome. And this corner of it is the most exciting bit. Go mortgage advice!

I read somewhere (possibly here) that someone had bought the property as an individual (thereby benefiting from better mtg rates) and was renting it to their ltd company (thereby benefiting from better taxation). It sounds too simple!

Does this work? Is it legal? Will lenders be OK with it if they find out?

Your thoughts please :-)

[Alex Wright]

So your Ltd is a letting agent and maintenance company that you pay the difference between rental income and mortgage payments to? If so I still think you personally would be liable to declare the mortgage payment part as an income from the rent received.