The buy-to-let market has matured considerably over the past decade, and nowhere is that more evident than in the rise of limited company structures.
What began way back as a niche option for portfolio investors has become the preferred route for most landlords when purchasing – particularly for those living and working overseas. For expat landlords, the limited company model provides a way to manage tax exposure, retain mortgage interest relief, and create a more flexible, long-term structure for property ownership.
For brokers, understanding how and why expat clients choose to operate through limited companies has become essential. The motivations are often strategic rather than purely transactional.
Many UK nationals working abroad view property as the cornerstone of their long-term financial plan – a tangible, income-producing asset that can be built upon, passed down, or repatriated when they return. Structuring that ownership through a company allows for a degree of planning that isn’t always possible with personal ownership.
One of the most immediate advantages is around tax. Since the withdrawal of full mortgage interest relief for individual landlords, limited companies have offered a clear benefit: mortgage interest remains a deductible business expense. This can make a substantial difference to the profitability of a rental portfolio, particularly for higher-rate taxpayers or those with multiple properties.
For expats, whose tax situations can already be complex, that clarity is invaluable. It also allows them to manage income and expenses in a way that aligns more closely with their broader financial arrangements overseas.
Beyond the income tax advantages, limited companies can play an important role in inheritance and succession planning. Many landlords see their portfolios not just as investments, but as family assets.
Holding property within a company structure makes it easier to transfer shares rather than bricks and mortar, allowing family members to gradually take over management or ownership. For expats building a long-term connection to the UK market while living abroad, that ability to create a sustainable family business model is particularly attractive.
Limited companies also open the door to greater flexibility across property types and lending scenarios. Expats often have more diverse portfolios, including houses in multiple occupation (HMOs), multi-unit blocks (MUBs), or mixed-use buildings.
These property types can fall outside mainstream criteria when owned personally, but through a limited company, specialist lenders like Foundation Home Loans can often take a more pragmatic approach. That flexibility allows brokers to present solutions for clients who may otherwise struggle to find a suitable lender – especially when income is earned in a foreign currency or documentation doesn’t fit the UK standard.
It’s also worth remembering limited company lending is not just about tax efficiency; it’s about control. Landlords can retain profits within the company for reinvestment, giving them a route to grow without the immediate personal tax consequences of drawing funds out. For expats, that can mean expanding their UK portfolio while managing income and exchange-rate fluctuations more effectively. It’s a structure that supports growth, not just ownership.
Of course, with opportunity comes complexity. Brokers need to have knowledge of how company structures interact with both UK and international tax regimes and how lender criteria differs from individual buy-to-let cases. The due diligence requirements can vary, and brokers play a crucial role in ensuring clients are properly informed about both the benefits and the responsibilities of corporate ownership. But for those who take the time to understand it, this area of the market offers enormous potential.
At Foundation Home Loans, we’ve seen consistent growth in limited company buy-to-let applications from both domestic and expat landlords. Many are experienced investors who understand a company structure gives them the tools to manage their portfolios more efficiently and strategically. It’s a model that aligns with the direction of travel in the private rented sector – more professional, more structured, and more focused on long-term sustainability.
Grant Hendry is director of sales at Foundation Home Loans
