James is a higher-rate taxpayer with four buy-to-let properties held in his personal name. With the phased withdrawal of mortgage interest tax relief for personal-name landlords now fully in effect, his accountant had recommended he consider moving his properties into a special purpose vehicle (SPV) limited company for tax efficiency.
Moving properties from personal name to SPV is not a simple retitling, it is a sale and purchase, with associated stamp duty and mortgage costs. Doing it properly requires four coordinated buy-to-let mortgages in the new limited company’s name, plus liaison with the accountant on tax structuring and the solicitor on conveyancing.
Anthony worked alongside James’s accountant to model the whole thing. Two lenders were shortlisted for the SPV mortgages based on their appetite for portfolio landlords and competitive rates for limited company structures. Applications were submitted in sequence to avoid stressing the SPV’s balance sheet before each completion.
All four properties refinanced into the SPV over a six-month period. Total new borrowing: £720,000. Expected annual tax saving on a higher-rate income, per James’s accountant: approximately £9,200. James has since added a fifth property to the SPV, also arranged through A&L.
“We came for a first mortgage in 2019. Anthony has done our life cover, our second mortgage and now the buy-to-let restructure. It is like having a friend in the industry.”
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