Buy to Let - Limited Company "SPV"?

cavan1

Hi,

Need a little bit of help with this Special Purpose Vehicle (SPV) term. I know what it is and why you would set it up - it's a vehicle designed to do one thing and Mortgage Lenders require this in criteria, especially as a First Time Landlord.

I am a First Time Landlord, and together with 3 others will be setting up a Ltd Co to solely buy-to-let and sell property. We don't want to withdraw any profits for at least 5-10 years, hence why we're keeping it in a company and all profits re-invested.

Now how do I go about setting up the SPV or declaring that the Ltd Co is an SPV?

I can't find any information regarding setting up SPVs and need some advice, or a how to guide? Can anyone help?

Kind Regards,
Cav

whd_2

Hi Cav,

Found this on the Woolwich website which might be of use...

Special Purpose Vehicle (SPV) Limited Company
Our definition of a Special Purpose Vehicle Limited Company is a UK-incorporated company that has been established by private individual(s) for the sole purpose of BTL activities i.e. the purchase/remortgage of residential properties for letting. This is confirmed by the Standard Industry Classification (SIC) Code registered at Companies House and will be checked/evidenced for our purposes by a full Company Search being carried out by our BTL Mortgage Processing Team. The following are acceptable SIC Codes:

7012 - Buying & sell own real estate,
7020 - Letting of own property, or
7032 - Manage real estate
Please remember that we now only consider applications from SPV Limited Companies which are existing clients ie the SPV Limited Company already has BTL mortgage lending with us. This is subject to the structure of the SPV Limited Company continuing to be acceptable. For more information please contact the Woolwich IBC on 0845 070 1567*.


Thanks,
Warren.