SPV & Ltd company finance

Finance for limited company landlords

Buying through a limited company changes the tax treatment of rental income and mortgage interest, but it also changes which lenders will deal with you and how personal guarantees and director credit checks are handled. We work the SPV lender panel daily and know where the friction points actually are.

Category: Sectors & audiences

Product: Private Finance

Loan size: £75k – £10m
LTV: Typically up to 75-80%
Structure: SPV Ltd company, SIC code 68209/68100
Personal guarantee: Usually required from directors

SPV vs trading company purchases

Almost all limited company buy-to-let lending expects a special purpose vehicle set up solely to hold property, with the correct SIC codes. A trading company with other business activity is treated very differently, and far fewer lenders will consider it, so getting the corporate structure right before applying saves weeks.

Personal guarantees and director underwriting

Lending to a company doesn't remove personal exposure — lenders almost universally require personal guarantees from directors with 20%+ shareholding, alongside a full personal credit and income check. Landlords sometimes assume incorporation ring-fences personal liability entirely; on mortgage debt it generally doesn't.

Interest cover ratio and tax treatment

Limited companies pay corporation tax on profit after deducting mortgage interest in full, unlike individual landlords who receive only a 20% tax credit under Section 24. This is usually the main driver for incorporating, but stamp duty, capital gains and mortgage arrangement costs of transferring existing personally-held property into a company need weighing against the ongoing tax saving.

Portfolio SPVs and multiple directors

Where a company holds multiple properties or has more than two directors/shareholders, some lenders apply additional scrutiny or decline outright; a smaller panel of lenders specialise in more complex corporate structures and portfolio SPVs, usually at a modest pricing premium.

Frequently asked

Is it worth transferring existing personal buy-to-lets into a company?

It depends on your tax rate, the CGT and stamp duty cost of the transfer, and how long you intend to hold the properties — it's a case-by-case calculation, not a default answer.

Do I need a specific SIC code for the SPV?

Most lenders require SIC code 68209 (letting) or 68100 (buying/selling own property); the wrong code can cause delays or a decline at underwriting.

Can a new company with no trading history get a mortgage?

Yes — SPV lenders expect no trading history and assess the directors' personal financial position and experience instead.

Are rates higher for limited company buy-to-let?

Typically yes, by a modest margin over personal-name BTL, reflecting the specialist underwriting, though the tax treatment often outweighs this for higher-rate taxpayers.

Can more than one person be a director/shareholder?

Yes, though lenders assess all directors with significant shareholding, and some cap the number of individuals or apply additional conditions for larger shareholder groups.

Structure your Ltd company purchase properly

Call 0345 2690628 before you incorporate — the right SPV setup avoids lender declines later.

Call 0345 2690628 Send your deal details