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SPV-What does it mean?

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.

We have access to all the lenders that provide Limited Company BTL mortgages so please contact us if you have an enquiry.

Searchlight Finance Limited is registered in England and Wales No.07929050 Searchlight Finance Limited is authorised and regulated by the Financial Conduct Authority and is entered on the Financial Services Register (http://www.fca.org.uk/register) under reference 743220. The FCA do not regulate Business Buy to Let Mortgages or most Commercial Mortgages and Bridging Finance. ICO Number Z3109319. Your property may be repossessed if you do not keep up repayments on a mortgage or any debt secured on it.

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