Transferring a property to your limited company: step by step
Moving a buy-to-let you own personally into your own company is treated as a sale at market value, even though you own both sides. That has tax consequences, so take accountancy advice first, and a finance process, which is where we come in.
1. Check the numbers first
Compare the stamp duty, capital gains tax and early repayment charges against the long-term saving. Our portfolio restructure calculator gives a first view, and our Section 24 calculator shows the tax you pay today.
2. Set up the right company
Most lenders prefer a special purpose vehicle (SPV) whose only activity is property, registered with SIC codes 68100, 68209, 68320 or 68201. Directors and major shareholders normally give personal guarantees.
3. Arrange a limited company mortgage
Your existing mortgage can't move with the property. The company takes out a new buy-to-let mortgage. Lenders rent-test companies at around 125% interest cover rather than 145%, so the company can often borrow more against the same rent. Not every lender accepts a purchase from a connected person, which is where a broker saves time.
4. Deal with the deposit
There's no cash deposit in the usual sense. The equity in the property is left in the company, usually recorded as a director's loan. Some lenders accept this "gifted deposit" arrangement, while others want to see cash moving. We'll place the case with lenders that are comfortable with it.
5. Time the redemption
Redeeming a fixed rate early can cost 1–5% of the loan in early repayment charges. Moving each property as its fix ends, or porting where possible, can make a big difference.
6. Completion
Solicitors act on the sale and the new mortgage, the old mortgage is redeemed, SDLT is paid by the company, and the property is registered in its name.
Moving one property vs a whole portfolio
Moving six or more dwellings in one transaction can change the stamp duty treatment, and a whole-portfolio move may be where incorporation relief is relevant. See incorporating a property portfolio.
Frequently asked questions
Can I sell my buy-to-let to my own limited company?
Yes, but it's treated as a sale at market value. Stamp duty and capital gains tax may be due, and the company needs its own mortgage.
Do I need a deposit to transfer a property to my company?
Usually not in cash. The equity is typically left in the company as a director's loan, and some lenders accept this in place of a cash deposit.
Can I keep my existing mortgage?
No. The company must take out a new limited company buy-to-let mortgage, and the personal mortgage is redeemed, which may trigger early repayment charges.
Is it worth transferring one property?
Sometimes, especially for a higher-rate taxpayer with high borrowing and a low gain. But costs are per property, so check the numbers first.