- Client: UK Nationals with Buy-to-Let Portfolio
- Challenge: Refinancing within a Limited Company Structure
Our clients, UK nationals, owned a portfolio of buy-to-let properties that had been transferred into a limited company structure for tax efficiency and long-term asset management. Initially held in their names, the properties were moved into a partnership before being incorporated into the limited company. However, the existing mortgages were still tied to the clients' names, which created challenges when seeking refinancing options under the new company structure.
The Challenge: Understanding the Complex Ownership Structure
Refinancing these properties required identifying a lender who understood the complex ownership transition: from personal ownership to partnership, and ultimately into the limited company. Traditional lenders often treat such scenarios as new purchases, potentially triggering stamp duty land tax (SDLT) liabilities. This made finding a lender experienced with intricate ownership structures crucial to avoid unnecessary tax costs.
The Solution: Specialist Lender for Seamless Refinancing
Enness identified a specialist lender with the expertise to handle the complexity of the client's situation. This lender understood the tax and structural setup, accepting it without requiring direct involvement, which provided the clients with confidence and flexibility. Furthermore, the lender offered a competitive interest rate tailored for limited company buy-to-let mortgages, making this an ideal solution for the client’s financing needs.
The Outcome: Tax-Efficient Refinancing
Thanks to Enness’s expertise, we secured a refinancing solution that allowed our clients to smoothly transition their buy-to-let properties into the limited company structure. This approach helped them avoid unnecessary SDLT liabilities while benefiting from a favourable lending rate. Enness provided a seamless, tax-efficient refinancing solution that aligned perfectly with the client's long-term financial strategy.
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