Moving Buy-to-Let Property Into a Limited Company: The Mortgage Side

By PMS Mortgages · Published 14 November 2026 · Meet Ria Ali

Moving a buy-to-let you own personally into your own limited company is treated as a sale at market value, even if no money changes hands. That can mean stamp duty for the company and capital gains tax for you, plus a full refinance onto a limited company mortgage. It can still make sense for some landlords, but the costs need working out property by property before you decide.

With changes to the tax on property income announced for April 2027, more landlords are asking us about incorporation. Here is what's involved, and where we can help.

How the transfer is taxed

We don't give tax advice, and you should speak to a property tax specialist before transferring anything. The general position in England is:

• Stamp Duty Land Tax. Your company is treated as buying the property at its market value. Companies pay the higher residential rates, which are 5% above the standard rates on every band. A flat 17% rate can apply to homes over £500,000, although relief from it may be available for genuine rental businesses.

• Capital Gains Tax. You are treated as selling at market value, so any rise in value since you bought may be taxable. Gains on residential property are taxed at 18% or 24%, depending on your income.

• Reliefs. Some landlords whose letting is run as a substantial business may qualify for reliefs that reduce these costs. Whether you qualify depends on your circumstances, so take specialist advice rather than relying on general guides or social media.

As a rough example, the higher-rate stamp duty on a £300,000 buy-to-let is £20,000. That is a cost to weigh against any long-term saving.

How the mortgage side works

This is where we come in. You can't simply move an existing mortgage into a company, so the transfer usually means:

1. Redeeming your personal mortgage. Check for early repayment charges first; on a fixed rate these can be significant, and timing the move to the end of a deal can save money.

2. Setting up the company correctly. Most lenders prefer a special purpose vehicle (SPV) whose only business is property, with the right business classification codes.

3. A new limited company buy-to-let mortgage. The company borrows against the property's current value. Directors are almost always asked for personal guarantees.

4. A fresh rental assessment. Lenders test the rent against the new loan. Companies are often assessed more favourably than higher-rate taxpaying individuals, which can mean more borrowing on the same rent.

5. Valuation and legal work. The company needs its own conveyancing, and the valuation sets both the loan size and the market value for tax.

On a portfolio, we look at every property together: which to move, which to leave in your own name, and whether to raise capital at the same time.

Should you transfer at all?

Incorporation isn't right for everyone. Many landlords keep existing properties in their own name and buy new ones through a company, which avoids the transfer costs altogether. Our guide to buying personally or through a limited company compares the two for new purchases.

Talk to us

We work with portfolio landlords across Croydon, Surrey and London, from limited company and SPV lending to HMOs and multi-unit blocks. We'll work alongside your accountant so the mortgage plan and the tax plan match. Our mortgage advice is fee-free, and your first consultation is free. Book a consultation or call 020 8668 6080.

Your home may be repossessed if you do not keep up repayments on your mortgage. The Financial Conduct Authority does not regulate most buy-to-let mortgages or tax advice.