Buy To Let For Companies | WIS Mortgages | SPV Mortgages
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Buy To Let For Companies (SPV Mortgages)

Buy to let lenders who offer mortgages to limited liability companies usually require the limited company to be an SPV (Special Purpose Vehicle). This means the company should be set up only for the purpose of holding and renting out property.

An SPV company can be registered at Companies House specifying company name, registered address, and Directors of the limited company. Companies use a five-digit code to identify and categorize the principal activities of the business. When registering an SPV company, one or more of the following SIC codes will be used.

68100 – BUYING AND SELLING OF OWN REAL ESTATE
68209 – OTHER LETTING AND OPERATING OF OWN OR LEASED REAL ESTATE
68320 – MANAGEMENT OF REAL ESTATE
68201 – RENTING AND OPERATING OF HOUSING ASSOCIATION REAL ESTATE

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Points to note in setting up an SPV Property Company

Lenders will lend to a newly incorporated SPV company or Existing SPV’s which have been in the property business. Lenders are reluctant to accept existing companies in different lines of business buying property.

 

 


Pros and Cons of Limited Company

Pros

Easy to set up a limited company

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Cons

There is no capital gain allowance when a limited company sells the property.

The suitability of this type of mortgage depends on individuals and their circumstances. Please speak to a tax advisor or a mortgage broker who understands tax rules.

As a mortgage is secured against your home or property, it could be repossessed if you do not keep up the mortgage repayments

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