Definition
Ltd Co. is short for limited company. In property analysis it usually means buying or holding the property through a UK limited company rather than in an individual’s personal name.
How it affects a property deal
Limited company ownership can change the tax treatment, mortgage products, lending stress tests, retained profit and exit assumptions. It can be useful for some investors, but it also adds administration and professional costs.
What to check
- Mortgage rate and lender criteria for company borrowing.
- Corporation tax assumptions and dividend extraction.
- Whether Section 24 is relevant to the personal ownership alternative.
- Long-term plans for holding, refinancing or selling.