"For landlords looking to scale, a limited company structure can offer more control, flexibility, and long-term value"
- Jonathan Stinton - Coventry for intermediaries
New research by Coventry for intermediaries shows that 73% of landlords still believe at least one common misconception about limited company Buy to Let (BTL). The findings reveal persistent misunderstandings about tax implications, costs, and administrative burdens, even as interest in limited company BTL grows.
Coventry’s report, The broker’s guide to limited company BTL mortgages, identifies the most widespread myth: 23% of landlords believe limited company BTL mortgages offer fewer tax benefits. In reality, many landlords could benefit from lower corporation tax rates compared to personal income tax.
Meanwhile, 22% of landlords think transferring property to a limited company is too expensive. While costs such as stamp duty and legal fees can apply, the actual expense depends on the circumstances and can be outweighed by longer-term financial advantages.
Other common misconceptions include the belief that limited company BTL mortgages are always more expensive than traditional BTL mortgages (22%) and that incorporation imposes excessive administrative burdens (21%). In practice, mortgage costs vary by product and scenario, and administration can be effectively managed with proper guidance.
Other insights from the research:
48% of landlords believe at least one tax or cost-related myth
21% think only large-scale landlords can benefit from incorporation
33% said understanding legal and tax implications is the biggest challenge when incorporating
“Interest in limited company BTL is growing, and more landlords are exploring incorporation as a way to structure their portfolios more efficiently and future-proof their investments. But our research indicates that many may be doing so based on false assumptions or outdated information,” said Jonathan Stinton, head of intermediary relationships at Coventry for intermediaries.
“There are real benefits to incorporating, from accessing lower rates of corporation tax and retaining profits within the business, to making it easier to plan for succession or add shareholders in the future. For landlords looking to scale, a limited company structure can offer more control, flexibility, and long-term value,” Stinton added.
“This is where brokers can make a real impact. By helping clients understand the full picture, brokers can become long-term strategic partners. That kind of clarity builds confidence, simplifies complex decisions, and creates stronger relationships that last well beyond a single transaction,” he noted.
