SPV and limited company structures
Limited Company Buy-to-Let
Buying a rental property through a limited company (SPV) can be tax-efficient for higher-rate and additional-rate taxpayers, but it needs a lender that understands company structures and the right mortgage from the start.
Tailored advice for your situation
Why landlords use a limited company (SPV)
A Special Purpose Vehicle (SPV) is a limited company set up specifically to hold property. For some landlords — particularly higher-rate and additional-rate taxpayers — buying through an SPV can allow mortgage interest to be offset against rental income within the company, which may reduce the overall tax bill.
Whether it suits you depends on your income tax band, portfolio size, and long-term plans, and we can't give tax advice. We can explain the mortgage differences between company and personal ownership, refer you to a tax specialist for the tax position, and structure the borrowing to fit the structure your accountant recommends.
How limited company BTL mortgages are assessed
Limited company BTL mortgages are assessed on the rental income the property generates, typically requiring it to cover 125–145% of the mortgage payment at a notional interest rate. Lenders also look at the directors' personal income, the company's position, and the directors' experience as landlords.
Some specialist lenders assess affordability using director salary plus retained profit, which can suit company directors who keep profit in the business rather than drawing it as salary or dividends. We know which lenders use which method and will match your company structure to the right one.
- Rental cover typically 125–145% at a notional rate
- Director salary plus retained profit considered by specialist lenders
- Experience requirements vary — first-time and experienced landlord options
Complex company structures
Not every company is a simple SPV with one director. We work with lenders who understand multi-entity groups, holding companies with several SPVs beneath them, trading companies, trusts with corporate members, and structures with multiple shareholders or different classes of shares.
Many lenders only cater for the simplest setup. We'll match you to a lender whose legal team can work with your structure rather than asking you to simplify it before you can borrow.
- Multi-entity and group SPV structures
- Holding companies and trading companies considered
- Trusts and partnerships with corporate members
- Multiple shareholders and complex share classes
Common Questions
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