Btl via SPV company

anikz

Hi All

I'm looking to get into the property market via an SPV company. Reason being as it wouldn't be income assessed and so the whole family can be listed as shareholders as I believe its more tax efficient when inheritance comes into play after my parents.

I've tried researching online but it's very sparse in terms of lenders willing to lend a LTD company. We have £150k from the sale of our family home which my father owns which we are looking to invest into BTL.

Therefore I'm looking for some advice from people who invested Equity from their property into BTL's via an SPV company.

Kind Regards
Nico

silvercar

Interest rates will be slightly higher for a company and shareholders may well be required to be personal guarantors.

[Deleted User]

Specialist lenders usually. Don't tend to accept business from people coming direct to them. Find a good BTL broker

You'll pay a premium on the rate as well as higher set up costs most likely.
But the lenders are usually able to lend more against the rent as they are finance companies rather than banks/building societies.

Ask a broker how much BTL they do before engaging as it's a really complex lending area now and if you don't do a lot you'll lose track of the rules and updates.

kingstreet

Worth noting, most lenders insist on all shareholders being party to the mortgage so be careful before setting up the SPV.

SouthLondonUser

Have you run your numbers? An SPV would typically pay less tax on the rent, being able to deduct more costs, but more on capital gains, because you'd have to pay corporation tax on the profit plus dividend tax if you pay the proceeds to the shareholders as dividends.