In the current climate, investing in property is front of mind with some clients looking to leverage bonuses and profit shares. And, with the buy-to-let tax landscape having changed in recent years, some want to purchase property as a limited company to offset costs and maximise returns.
Investec recently provided a mortgage for two buy-to-lets held within a Special Purpose Vehicle (SPV) portfolio.
The client
Our clients had a background in finance and owned a number of buy-to-let properties in London through a SPV. They wanted to remortgage two properties to raise liquidity to pursue other investment opportunities.
The challenge
Lending to a SPV structure can be a challenging proposition for some lenders as it requires specialist knowledge of tax and legal restrictions. This case was particularly complex as one of the properties was being converted from a single dwelling to three self-contained flats.
The solution
To achieve our clients’ goals, Investec was able to provide a £2.4m mortgage, secured against two of the SPV’s buy-to-let properties.
We work with a number of clients who are looking to grow and manage their wealth. We are familiar with income structures including bonuses and we are able to look beyond buy-to-let income when assessing affordability to offer a bespoke mortgage. For lending to an SPV, an ultimate beneficial owner is required to give a full personal guarantee.
Are you thinking about investing in property? Speak to our private banking team today.
Important information
This article is for general information purposes only and should not be used or relied upon as professional advice. It is advisable to contact a professional advisor if you need financial advice.
