There’s more than one way to buy a home. Most people keep things simple and buy in their own name. But, if you’re investing for the long term, helping your children, or thinking about inheritance, how you buy can make a real difference.
The truth is, there’s no universal “best” route. Each option – personal, company, trust, or family name – has its own quirks. The right one depends on what you’re trying to achieve.
Let’s look at the main options and the trade-offs that come with each.
Buying in your own name
For most buyers, this is the straightforward route. Your name goes on the Land Registry, you take out a mortgage, and the process feels familiar.
Pros:
- It’s simpler and usually cheaper to set up.
- Access to mainstream mortgage products is easier.
- If it’s your main home, you may qualify for tax relief when you sell.
Cons:
- You’re personally on the hook for any debts or losses.
- Rental income is taxed as personal income.
- The property counts as part of your estate for inheritance tax.
If you’re buying somewhere to live, this option often makes perfect sense. For investors, though, it can be less efficient once the numbers grow.
Buying in your children’s name
Plenty of parents think about this – especially when adult children are struggling to get on the ladder. It’s generous, but it needs careful handling.
Pros:
- Ownership sits with your child, which might help with future inheritance planning.
- Any growth in value benefits them directly.
- It can be useful if they’re studying or working away from home.
Cons:
- You hand over control once it’s in their name.
- If they’re under 18, you’ll need a trust structure.
- Their own relationships or finances could complicate things later.
In practice, many parents prefer joint ownership or a trust – so they keep a say while still planning for the future.
Buying through a limited company
More investors are doing this these days, particularly since mortgage interest relief changed for individuals.
Pros:
- Profits are taxed under corporation tax, not personal rates.
- You can separate your property business from your personal finances.
- It can make passing assets on easier in the long run.
Cons:
- Mortgage rates tend to be higher.
- You’ll have company admin and annual filings to handle.
- Taking profits out personally can trigger extra tax.
If you’re planning more than one or two rental properties, a limited company structure can make solid sense. If it’s a single buy-to-let, it may not.
Buying in a trust
Trusts are less common, but they have their place – usually for families managing intergenerational wealth.
Pros:
- You can separate control from benefit – for example, hold a property for children while keeping oversight.
- They can help with inheritance tax planning.
- They may protect assets from certain risks.
Cons:
- Set-up and running costs are higher.
- Tax rules for trusts are complicated and need specialist advice.
- Mortgages can be harder to arrange.
They’re powerful tools in the right hands – but only with the right professional guidance.
Which route works best?
That depends on your goals. If it’s a main residence, simplicity is usually the smart option. If you’re building a portfolio, a company might suit you better. And if you’re thinking ahead for family, a trust could be part of the plan.
The key is to make sure your legal and tax advice, your finance, and your buying strategy all line up. Changing structure later can be expensive.
How The Buying Agents help
At The Buying Agents, we work with buyers across London and Surrey who use every one of these routes. We’ll help you think through what each means in practice, coordinate with your tax or legal team, and shape your search around your chosen structure.
Whether you’re buying for yourself, for your children, or through your business, the goal stays the same – to secure the right property, on the right terms, with confidence.
Thinking of buying property in London or Surrey?
Speak to The Buying Agents today. We’ll help you choose the right way to buy, and make sure the process stays as smooth and stress-free as possible.