If you’ve grown weary of being a UK landlord in a personal name, or contemplating investing in a new buy-to-let investment, now might be the perfect time to capitalise on a remarkable trend sweeping the property investment sector: buyer demand for property companies is at an all-time high.
Rather than purchasing individual properties in personal name, investors are now prioritising the acquisition of property companies that own at least 1 asset, and the reason behind this shift is straightforward – the tax advantages are unparalleled.
In this article, we’ll unpack why this approach is so appealing to buyers and explain how landlords can benefit by working with the right team to secure competitive offers, a quick sale, and even a smooth transition into retirement.
Stamp Duty Land Tax (SDLT) is one of the largest expenses for property buyers in the UK. With recent increases, including a 5% surcharge on additional properties, these costs can quickly become prohibitive for investors looking to build a portfolio. However, purchasing a property company instead of individual properties offers a game-changing advantage: the applicable Stamp Duty is only 0.5% of the company’s value.
This substantial difference is driving an influx of serious investors eager to acquire property companies as concerns.
Let’s consider a property company with assets valued at £3 million:
Scenario | SDLT/Stamp Duty Payable |
Buying Properties Directly | £421,250 |
Buying a Property Company | £15,000 |
Tax Saving | £406,250 |
Buyers purchasing properties directly face escalating SDLT costs, while those acquiring a property company benefit from the significantly lower 0.5% Stamp Duty rate. This £406,250 saving not only incentivises investors but also allows them to reinvest into other opportunities, making property companies an attractive target.
Selling your property company, rather than each property individually, provides landlords with unique advantages. From higher buyer demand to streamlined processes, here’s why you should consider this route:
Investors looking to reduce their SDLT burden are driving a notable increase in demand for property companies. This competition often results in more lucrative offers, as buyers see the value in acquiring well-structured portfolios that are bundled together.
Selling an entire property company can save significant time and effort. Instead of transferring individual properties, renegotiating mortgages, or juggling multiple transactions, the buyer takes on the entire company. This seamless approach is far less stressful and ensures a smoother transition.
Thanks to the SDLT savings, buyers may be willing to pay a premium for a property company. This means landlords could secure a higher overall price compared to selling properties individually.
At Value Invest, we connect landlords with an extensive network of buyers. Many of these investors are now focusing on property companies due to the tax advantages. By tapping into this growing trend, we help landlords achieve faster sales at competitive prices.
Our process is simple and effective:
If you’re ready to explore selling your property company, our team is here to assist every step of the way.
To illustrate the SDLT advantages, let’s delve into the numbers:
For a £3 million portfolio, SDLT is calculated as follows:
Total SDLT for direct property purchase: £421,250
With a 0.5% Stamp Duty rate on a £3 million company purchase:
£3 million x 0.5% = £15,000
This means a buyer saves £406,250 in tax by purchasing the property company instead of the properties individually.
The market’s focus on property companies is more than a passing trend – it’s a structural shift driven by tax incentives. For landlords, this opens up an opportunity to sell efficiently, profitably, and with less administrative burden.
If you’re a landlord holding your portfolio within a Limited Company, now is the time to take advantage of this high demand. Investors are actively seeking property companies, and with Value Invest’s expertise, you’re positioned to make the most of the opportunity.
If you’re a landlord with properties held within a Limited Company, now is the perfect time to sell. Investor demand is at an all-time high, and the SDLT savings make this an unparalleled opportunity for both buyers and sellers.
Contact us at Value Invest today to connect with our network of motivated buyers. We’ll guide you through the process, ensure your portfolio is positioned to attract competitive offers, and help you achieve a seamless, profitable sale.
Let’s work together to make the most of this booming trend and secure the outcome you’ve been aiming for.
Investing in the UK property market requires thorough research to make sure you’re investing in the right areas, trust in the developers, and patience until completion. With the help of our expert team in Value Invest, we can guide your way to wealth accumulation.
Value invest identifies exceptional properties, pools together the resources of individual investors and purchases properties at a discounted prices:
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ALL RIGHTS RESERVED
