An SPV is short for (Special Purpose Vehicle). It’s jargon for a company set up specifically for one purpose. In this case to own property. Most lenders prefer this type of company as there is no baggage from the day to day trading activities if the company carried out a business or service.
We then have the SIC code. That’s a 5 digit code that every company has depending on its activity. The ones that are acceptable to lenders for property investment are:
• 68100 Buying and selling of own real estate
• 68201 Renting and operating of Housing Association real estate
• 68209 Other letting and operating of own or leased real estate
• 68320 Management of real estate on a fee or contract basis
The SIC code is advised to Companies House on the incorporation of the company or can be amended on your annual return. If the return is not due it can be brought forward or resubmitted.
The company does not need any history. The application to the lender can go in as soon as the company is set up.
Please bear in mind that most lenders will require all directors to go on the application and personally guarantee the loan.