Limited Companies

Welcome to Advocate Finance, your trusted broker in securing your next investment property mortgage!

As established commercial finance brokers, we understand the unique needs of property investors and business owners. We are here to provide tailored financial solutions that help you achieve your goals.

Whether you are looking for a limited company property mortgage, loan or refinance, we cover all aspects to ensure your success.

Limited Companies Explained

A Single Purpose Vehicle (SPV) is a limited company set up solely for investment in property.

There are standard industry classification codes related to each limited company called SIC codes. The typical codes for an SPV are:

68100 (buying and selling own real estate)
68209 (other letting and operating of own or leased real estate)
68320 (manager of real estate on a fee or contract basis)

For the company to be classified as an SPV, it must have one of these SIC codes and not trade in any activity other than the renting of properties.

The mortgages can be in the name of the SPV Ltd Company and held within it.
An SPV Ltd Company can own as many Buy-to-Let properties as they wish – there is no restriction.
Rental income is paid directly into the business bank account.
If you are looking to start or expand your property portfolio, owning multiple properties under 1 umbrella is more convenient.

Key Features:

Mortgage Range: £100,000 to £50 million, subject to affordability and credit criteria.
Loan to Values: Up to 75% (potentially 100% with a cross charge over another property).
Mortgage Term: 1 to 25 years.
Payment Options: Interest only to reduce monthly payments or capital repayment.
Purpose: Purchase, refinancing or capital raising for any purpose.
Income Requirements: No minimum outside income; all income types considered.
All Credit Histories: All credit histories, from high net worth to credit repair.
All Property Tenures: Freehold and leasehold (no minimum leasehold term).
All Residential Tenants: Working, students and LHA benefits accepted.
All Residential and Business Tenancies: From AST to business licenses and corporates leases.
All Business Tenants: No restrictions on the industry or sector.
EPC-Enhanced Products: Available for energy-efficient properties.

Why use an SPV Limited Company?

A limited company involved in property development for resale rather than holding it as an investment, would be classified as a trading ltd company.

Therefore, if you wish to solely use the limited company for the purpose of renting out properties, an SPV is the best solution; there is no limit on the number of Buy-to-Let properties you can own.

What is the difference between an SPV and Trading Limited Company?

Limited Company Buy-to-Let mortgages come in two types:

One is a Limited Company that is a single-purpose vehicle (SPV), whose sole purpose is to invest in property.
The other type of limited company Buy-to-Let mortgage is for a trading limited company, whose main trading activity is something other than property investment, and the directors want to use this limited company to purchase a Buy-to-Let property.

Steps to Securing a mortgage in a Limited Company

Step 1

Initial Consultation with Mortgage Broker

Begin with a consultation with one of our friendly mortgage brokers to discuss your investment goals, property details, and financial situation.

We will assess your needs and recommend suitable finance options.

Step 2

Loan Application

We will submit a detailed loan application, including financial statements & property details etc. Our broker team will guide you through the documentation required by lenders.

Step 3

Property Valuation

A professional valuation will be conducted to determine the property's market value, including both residential and commercial elements. This is a critical step in the mortgage application process.

Step 4

Approval, Legal & Funding

Once approved, solicitors will be instructed to carry out any legal formalities. This can be as quick as a week (if Title Insurance is used on refinance cases). Once this stage is completed funds will be released.

Benefits of SPV Limited Companies

Advantages	Disadvantages
Lenders are more likely to lend on an SPV Ltd Company	Interest rates could be higher than usual
Asset Protection	Could be faced with additional costs
An easier way to own multiple properties & Rental income is held within the business
Director’s loan can be used
Using a limited company to invest in property has many advantages. For this reason, accountants often recommend buy to let mortgages for limited companies. This legal structure can maximise tax benefits.

How can YOU benefit from our advice?

If speed is essential to the transaction, our advisers will prioritise your case to ensure deadlines are met.
Our Advisers have expert knowledge when it comes to Limited Companies.
We offer a FREE assessment and have a no upfront fee policy.
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