SPV/LTD Companies

Due to the governments’ 2016 budget changes to mortgage interest tax relief and stamp duty surcharges,it might be valuable to purchase a property not in your own particular individual name, but in the name of a limited company.

Numerous more proprietors are currently considering buying investment property by means of a SPV limited company. In the mortgage world, a Special Purpose Vehicle limited company is a company which is set up just to hold property and do nothing else

One critical truth to recall is that a limited company is treated as a separate legal entity. This mean on the off chance that you wish to transfer a property at present held in your own name into the name of the limited company or the other way around, it will be dealt with as an sale of the property and accordingly could trigger deals costs, for example, Stamp Duty and Capital Gains charge tax.

For the Individuals who already have companies and are pondering whether this would meet the SPV criteria, here is the thing lenders would like to see:

• SIC code for letting property
• No indication of any income through the organization of something besides letting property.

If the company has traded in another field previously, many few lenders will still lend to the company as long as this is notable, the company has the right SIC code and the accountant can confirm the company will only be letting property going further.

Typical highlights for the SPV/LTD Co’s products;

• Newly incorporated company.
• First time landlord.
• Maximum upto 80% LTV.
• Maximum 4 applicants.
• Interest rate starting from 3.34% pa.
• No Valuation fee.
• Trading company can be considered (subject to the Accountant Undertaking).
• 125% of the rental cover.

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