01
Setting up the SPV correctly
A company whose SIC code reflects property letting — commonly 68209 or 68100 — and whose activities are limited to holding property. A trading company that also owns property is considerably harder to fund.
Buy-to-let
“I want to buy my next rental through a limited company but have never done it”
Most limited company buy-to-let lending is done through a special purpose vehicle: a newly formed company whose only activity is holding property. Lenders are comfortable with a company that has no trading history, because they underwrite you through a personal guarantee.
An illustrative situation, not a client case study. It describes the kind of enquiry this market sees. Any figures are examples, not a quotation, and no credit check or lender decision is involved in reading this.
Sound familiar?
- You already own rental property personally, or are buying your first
- Your accountant has suggested a company structure for tax reasons
- You do not know which SIC code to use or what the lender needs
- You are unsure whether a new company with no history can borrow
The situation
Company ownership of rental property became far more common after changes to how finance costs are treated for individual landlords. The structure is now mainstream rather than exotic, and a large part of the buy-to-let lending market is geared for it.
What surprises first-timers is how routine it is. A brand new company with no accounts and no trading history is entirely normal to a buy-to-let lender, because the assessment is really of you.
Why the usual lenders say no
- Most high-street brands do not participate in limited company buy-to-let at all.
- A new company has no accounts, which mainstream commercial lending would treat as a problem.
- The structure needs to be right before applying, and an incorrectly set up company causes delay.
What usually works
02
Expecting a personal guarantee
Standard on almost all limited company buy-to-let. The lender underwrites you personally, which is why a new company with no history is not a barrier.
03
Understanding the rate difference
Company products are often priced slightly higher than personal ones, with higher arrangement fees. Whether that is outweighed by the tax treatment is a question for your accountant.
04
Keeping the structure simple
Multiple shareholders, corporate shareholders or complex group structures all narrow the lender panel sharply. Simple beats clever when it comes to funding.
Roughly how the numbers look
| Typical loan to value | Up to 75% |
| Rental cover | Often assessed more favourably than personal ownership |
| Personal guarantee | Standard, usually from all directors and shareholders |
| Trading history required | None — a newly incorporated SPV is normal |
Whether a company is right for you is a tax question for your accountant. We arrange funding for either structure and have no preference between them. These are examples to show the shape of a deal, not a quotation. Work out your own figures in the bridging calculator.
What we would need from you
- Certificate of incorporation and the company’s SIC codes
- Details of all directors and shareholders
- Personal income and credit details for each guarantor
- Details of the property and the expected rent
- Proof of the deposit and its source
- Your existing portfolio schedule if you have one
Things that catch people out
- Moving an existing personally owned property into a company is a sale for tax purposes and can trigger stamp duty and capital gains tax.
- Using a trading company rather than a clean SPV narrows the lender panel dramatically.
- A personal guarantee is a real obligation. Understand it before signing.
Questions we get asked
Can a brand new company get a buy-to-let mortgage?
Yes. A newly incorporated special purpose vehicle with no trading history is entirely normal in this market, because the lender assesses you personally and takes a personal guarantee.
Is it cheaper to buy personally or through a company?
Company products often carry slightly higher rates and fees, but the tax treatment of finance costs can more than offset that depending on your circumstances. That comparison is your accountant’s to make, not ours.
What SIC code should the company use?
Codes reflecting property letting, commonly 68209 or 68100, are what lenders expect. An incorrect code is a common and entirely avoidable cause of delay.
The product that usually fits
See how it worksEvery case is different. A specialist will confirm what actually fits yours.
Keep reading
Related situations and guides
“I have several properties and want to restructure the whole portfolio”
Several properties on legacy rates, some equity to release, and a structure that may no longer suit.
Read the scenario“I am buying my first rental property and do not know where to start”
You have the deposit and have found a property, but the process is unfamiliar.
Read the scenarioBridging loan exit strategies explained
Sale, refinance or something else: how lenders underwrite your exit, what evidence they want, and what happens if the exit slips.
Read the guideAll situations
Eighteen situations across bridging, development, commercial and buy-to-let.
Browse them allAmram Finance Ltd is a credit broker, not a lender. We do not lend our own money and we do not approve or issue loan offers.
Your property may be repossessed if you do not keep up repayments on a loan secured on it. Some forms of bridging finance and buy-to-let lending are not regulated by the Financial Conduct Authority.