73% of landlords still believe at least one myth about limited company buy-to-let (BTL), Coventry for intermediaries’ latest research found.
The report, ‘The broker’s guide to limited company BTL mortgages’, showed 23% of landlords thought limited company BTL mortgages offered fewer tax benefits, despite many landlords being able to use lower corporation tax rates.
22% of landlords believed transferring property to a limited company was too expensive.
Other misconceptions included 22% of landlords believing that limited company BTL mortgages are always more expensive than standard BTL mortgages, and 21% thinking that running a limited company brings too much administrative work.
The research also found 48% of landlords believed at least one tax or cost-related myth, 21% thought only big landlords could benefit from incorporation, and 33% felt understanding legal and tax rules was the biggest challenge when incorporating.
Jonathan Stinton, head of intermediary relationships at Coventry for intermediaries, said: “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“But our research indicates that many may be doing so based on false assumptions or outdated information.
“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.”
Stinton added: “For landlords looking to scale, a limited company structure can offer more control, flexibility, and long-term value.
“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.”
