01206 544333
Current Bank Base Rate: 3.75%
Current Bank Base Rate: 3.75%
Welcome to Advocate Finance, your trusted mortgage broker for investment mortgages.
Discover the benefits of using a Limited Company Share Purchase Mortgage to acquire limited companies holding buy-to-let properties.
This specialised mortgage option can help you grow your property portfolio while offering significant tax savings, particularly on Stamp Duty Land Tax (SDLT).
In this example, using a Limited Company Share Purchase Mortgage to acquire shares instead of the property itself results in an SDLT saving of £37,500.
Scenario | Property Value | SDLT Liability | Stamp Duty on Shares | Savings |
Direct Property Purchase (B2L) | £500,000 | £40,000 (including 5% surcharge) | N/A | £0 |
Limited Company Share Purchase | £500,000 | N/A | £2,500 | £37,500 |
At Advocate Finance, we specialise in arranging Limited Company Share Purchase Mortgages.
These products are offered by lenders who understand the unique structure of buying shares in property-holding companies.
Our team will guide you through every step, ensuring you maximize the benefits of this innovative approach.
Advantages of Ltd Co Share Purchase Mortgages | Disadvantages of Ltd Co Share Purchase Mortgages |
Potential Stamp Duty tax savings, which can be tens of thousands | Limited amount of lenders, which could mean slightly higher interest rates but once the shares are purchase, then a refinance to a cheaper lender could take place subject to early repayment charges |
Portfolio purchases of larger portfolios can be possible, and obtaining not only a bulk discount on the purchase price but also a saving on the stamp duty | If the discount is significant, then a bridging loan may be required before refinancing to a long-term mortgage lender |
Expertise and Experience:
Tailored Financial Solutions:
Competitive Fee Structure
Comprehensive Range of Services:
This type of mortgage helps reduce SDLT costs by taxing the transaction as a share purchase rather than a property purchase, often leading to significant savings.
See our case study here detailing how our client saved over £60,000!
Yes, you can refinance properties already owned by a limited company. However, the Limited Company Share Purchase Mortgage applies specifically to acquiring shares in a company holding properties.
Yes, due diligence is essential to identify any hidden liabilities within the company, such as unpaid taxes or legal disputes. Professional advice is crucial.
Most lenders cater to standard residential buy-to-let properties, but there are options for HMOs, commercial properties, and mixed-use developments.
This mortgage is most beneficial for high-value transactions where SDLT savings outweigh the costs associated with purchasing a limited company.
That being said, we see limited company share purchases becoming more common with BTL investors – we’ve explained here the reasons why.
Yes they do, as they are more complex. You can read more in our detailed post here
Yes – It is not limited to individual applicants buying the shares in a limited company. Another company can be used as the legal entity to acquire another companies shares.
This method could in some circumstances be even beneficial from a tax perspective, but please refer to your accountant / tax adviser to obtain advice on the most tax efficient way forward.
Our advisers offer a FREE consultation, so please give us a call or use the “Get in Touch With Us” form at the end of this page.
Our expert team of mortgage brokers are here to guide you through every stage of the process.
