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Holiday Let Mortgages

Holiday Let Mortgages

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        • Holiday Let Mortgage Broker

          We have been specialising in holiday let mortgages since 2006 and have accumulated a deep understanding of all types of holiday let finance.

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  • ABOUT US
        • Holiday Let Mortgages is an Independent Mortgage Broker specialising since 2006 in mortgages for holiday let properties.

          This means that we are free from any outside influences in terms of where we can go to get you the best mortgage rates and deals available.

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Specialist INDEPENDENT mortgage brokers – ☎ 020 8301 7931

  • Guides
        • HOLIDAY LET GUIDES

          We have a lot of resources to help you with your holiday let. There are quite a few guides plus many articles on how we can help people successfully invest in a holiday let property.

        • Holiday Let Mortgage Guide
        • Holiday Let Mortgage Criteria
        • Buying a holiday home for investment
        • Holiday let property guide
        • Guide to UK Holiday Lets
        • Buying a holiday home in the UK
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        • HOLIDAY LET ARTICLES & CASE STUDIES

          There is lots of useful information in our article and case study sections. Built up over many years we share new developments in lending attitude and also client case studies for the more difficult holiday lets!

        • Articles
        • Case Studies
        • Q&A

Can I buy a holiday let through my business?

You are here: Home / Articles / Can I buy a holiday let through my business?

Can my company buy a holiday let?

Yes, you can purchase a holiday let through your existing trading business, provided your business is a trading limited company. If your business is not a limited company then you are treated as a private individual for the purchase. You can buy a single unit holiday let property or a complex of units or a holiday let business which is also a trading limited company. You will be eligible provided that your current company organises the correct or additional Companies House SIC code (68209 is for “letting and operating of own or leased real estate”).

Accountants, acting for their clients who own trading limited companies, will extol the benefits of the purchase of a holiday let businesses or property through their client’s company. There can be considerable tax and other advantages to this recommendation.

One of the significant issues is SDLT. If your existing limited company buys one or more holiday lets which are themselves not in a limited company then the higher rates of SDLT are payable, as they would be for a private individual. Any residential property that is purchased with a view to be let, incurs the charge. Properties restricted to holiday let use only, which ties them to the use, are still hit by this SDLT surcharge; unlike other commercial property.

However, if the property(ies) that you are buying are already in a limited company and many larger holiday businesses are owned by limited companies, there is an alternative way of purchasing these without triggering an SDLT event. Purchasing the property directly as a company asset will trigger an SDLT event, BUT purchasing the limited company itself, necessarily including all its assets and including the property(ies), by buying all the shares of that company will not trigger the 3% charge. SDLT is payable but only at the rate payable on the purchase of the shares i.e. 0.5% on the entire purchase price. This method is not an avoidance measure, it’s a non SDLT event. We posted a case study recently on this one, which was a complex holiday let purchase, via a Ltd Company. A share purchase works because at the land registry the title deeds do not change because the current limited company still owns it. The change takes place at Companies House which shows that you now own the company. Cost savings can of course be huge.

For completely parallel reasons, purchasing through a limited company (as an SPV) can also be very attractive on sale, as the purchaser can opt for the share purchase route. This of course can put the company vendor in a very strong negotiating position.

As always in such cases, its advisable to seek advice from a qualified accountant and solicitor before embarking on any commercial property transaction.

Category: ArticlesTag: company holiday let, limited company holiday let, limited company property purchase

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Get in touch with us and send some basic info about your project.

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CONTACT US

Holiday Let Mortgages

1st Floor, 140 Long Lane
BEXLEYHEATH
DA7 5AH

T 020 8301 7931
E mortgages@holidayletmortgages.co.uk

QUICK LINKS

Holiday let mortgage guide

Guide to UK holiday lets

Holiday let mortgage criteria

Holiday let articles

Holiday let tax

WE LIKE TO TALK

Please contact us whether you have found a property or project that needs financing or you are just in the early stages of forming a plan.

It’s often an advantage to discuss the financial side of a deal before everything has been agreed. So please call us on 020 8301 7931 and tell us your holiday let ideas.

Copyright © 2020 · Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it. Broker fees may apply. Written details on request. All loans subject to status. Think carefully before securing other debts against your home. The Financial Conduct Authority does not regulate holiday let mortgages. Holiday Let Mortgages is a trading style of Drake Mortgages Limited and this website is owned and operated by Drake Mortgages Limited who are authorised and regulated by the Financial Conduct Authority FCA Register No 207532 | Privacy | Terms