Case study: mortgage for buy-to-let with a Special Purpose Vehicle

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.

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.

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.

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.

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.