SPV (Special Purpose Vehicle)
It is usually more difficult to purchase a property in a ‘trading firm’ than it is through an SPV. An SPV is a particular type of company set up for one thing – and in our industry that is property investment. Every SPV company needs to have a SIC code allocated to it. For most lenders, the SIC codes required for BTL purchases are as follows:
68100 – Buying and selling of own real estate
68209 – Other letting and operating of own or leased real estate
68320 – Management of real estate
68201 – Renting and operating of Housing Association real estate
Without the correct SIC code allocated to your company a lender will not allow a mortgage application to proceed, so it is extremely important to make sure you get this correct at the time of setting up the SPV company. We cannot start an application unless the SPV has been set up on Companies House. It is relatively straight forward and involves an online application.
Set up your SPV HERE