Let to Buy for Company Directors – A Cost Effective Approach

If you’re a company director thinking about your next move, you might assume that selling your current home is the only way to fund your onward purchase. But what if there was a smarter way to do it? A way that could help you build long-term wealth while still getting the home you really want?

In this case study, we share how a limited company director used a Let to Buy strategy to retain their existing home as an investment, fund their onward purchase, and do it in a tax-efficient way – with help from their accountant and the right mortgage advice.

The Challenge – Low Income on Paper, Big Ambitions in Practice

A client who was referred to us by his accountant wanted to move home. He also wanted to keep his current property as a long-term investment and be in a stronger buying position—chain-free.

His plan was to release equity from his existing home via a Buy to Let remortgage and combine this with personal savings to fund the deposit on a new residential purchase.

The main sticking points?

• He was only drawing £50,000 per year in salary and dividends, following his accountant’s advice.
• His existing lender wouldn’t lend enough, because they only considered his drawings—not the much larger profit his business was generating.
• On top of that, he was facing a hefty stamp duty bill due to the new purchase being an ‘additional property.’

The Strategy – Smart Structuring and the Right Lenders

We worked with the client’s Accountant to explore a more strategic route.

Step 1: Let the existing property through a Limited Company

Instead of keeping the current property in his personal name, we suggested purchasing it through a limited company using a Buy to Let mortgage. This meant:

• The stamp duty surcharge applied only to the lower-value property (his current home at £350,000), not the more expensive onward purchase (around £650,000) where standard stamp duty was charged.
• His personal borrowing capacity for the new residential mortgage wasn’t impacted by the investment property’s income or expenses.

Step 2: Use a Residential Lender Who Looks at Business Profit

Rather than forcing the clients to take more income and trigger a higher tax bill, we found a residential lender who based affordability on profits—not just salary and dividends. This meant:

• He didn’t need to take an unnecessary tax hit
• He could still access the loan amount he needed
• He avoided the complexity of having to rework his remuneration strategy

The client did incur some charges for changing lenders, but these were significantly lower than the extra tax he’d have paid to meet the previous lender’s criteria.

The Outcome – A Smooth Move with Long-Term Benefits

The client achieved everything he wanted—without compromising his financial position:

• Kept his existing home as a long-term investment
• Bought his new home chain-free
• Reduced stamp duty by restructuring the transaction
• Didn’t need to increase personal income or tax liability
• Followed the advice of both a specialist mortgage broker and his accountant

Final Thoughts

Let to Buy can be a smart move for company directors—but it’s not just about ticking boxes for mortgage approval. The key is getting the right structure, advice, and lender to fit your long-term financial goals.

If you’re a business owner thinking about moving home, retaining an investment property, or growing a portfolio, make sure you speak to a mortgage adviser who understands how your income is really structured—and who will work with your accountant to get it right.

Your home may be repossessed if you do not keep up repayments on your mortgage.
There may be a fee for mortgage advice. The precise amount will depend upon your circumstances.
Symmonds de Lacey is a trading style of Easy Street Financial Services Ltd, which is authorised and regulated by the Financial Conduct Authority. Registered in England and Wales. Company number 6430453. Registered address: Basepoint, 377-399 London Road, Camberley, Surrey, GU15 3HL.
Please note, we are not tax advisers. For tax advice, please speak to your accountant or a qualified tax adviser.
Information correct at time of writing – June 2025