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Limited Companies

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.

Key Features: SPVs
  • 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. 

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.


The maximum is 4 directors.

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Advantages of Ltd Companies

  • Lenders are more likely to lend on an SPV Ltd Company.
  • Rental income is held within the business.
  • It’s an easier way to own multiple properties.
  • Director’s loans can be used.
  • Asset protection.
  • 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.

Disadvantages of Ltd Companies

  • Interest rates could be higher than usual.
  • Could be faced with additional costs.

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. Our typical fee for 99% of our clients is capped at £395
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