What Is A Special Purpose Vehicle (SPV)?

what is a special purpose vehicle or SPV?

With the introduction of Section 24, property investors are exploring ways to limit their tax liability. One way to do this is to form a limited company for buy to let. This solution won’t make financial sense for everybody but, if it is the route you decide to go down, then you will need your new company to be a special purpose vehicle or SPV.

Property Expert Series: Richard Ignatowicz From Mortgage Savers

What Is A Special Purpose Vehicle?

Amy: Richard, can you tell me, what is a special purpose vehicle? In property investment circles we hear this term a lot.

Richard: An SPV (or special purpose vehicle) is a type of limited company that mortgage lenders will accept. It’s a setup, under which you can apply for mortgages as a limited company.

So, you have to go to Company’s House – there are specific, what are called sic codes, that lenders will accept – and you have to register a company under that specific sic code. Then you can trade under a limited company and still apply for mortgages, and so on.

Amy: Perfect, and this could be, as you touched upon, one way of getting round cash flow issues caused by the new tax regime. And, we’re not saying it will be, but it could be a way of protecting yourself.

Richard: For limiting your tax liability for sure.

Join Our FREE Property Training Course Today

Sign up for our free online property training course today.

In there we cover a range of different property strategies to help you get started on building a long-term property portfolio or creating a cash flowing property business.

We also look at ways to increase your return on investment with any of the properties you may be considering and we also have a couple of cheat sheets and downloadable documents in there as well.

Just click the image below to join our free training course today.

Any Questions?

If you have any questions or thoughts about using a special purpose vehicle for investment in property then leave them in the comments section below.

Alternatively, you can get in touch via our Facebook page.

We’d love to hear from you and as always we’re happy to help.

Related Posts:

What Kind Of Property Deals Should Investors Be Looking At? In the current property market cash flow is king and greater cash flow is to be found in lower value areas, where property deals can be found for under £100k. Investors who are not familiar with these...
Introducing Richard Ignatowicz From Mortgage Savers The first in a series on buy to let mortgages with Richard Ignatowicz From Mortgage Savers. Richard is an independent mortgage adviser with a difference in that he is also a buy to let landlord and pr...
An Introduction To Specialist Mortgages for Property Investors Today Amy and Richard look at mortgage products for property investors and at what the biggest trends are in the property investment industry when it comes to financing. HMOs are, of course, very popu...
What Is Section 24 And What Does It Mean For Buy-To-Let? Unfortunately, Section 24 is going to make a lot of buy-to-let landlords a lot poorer but it isn't going to affect everyone equally. Today, Amy and Richard look at what kind of investor is most likely...
Do Landlords Need To Set Up A Buy To Let Limited Company? Recently, there has been a lot of talk amongst property investors and landlords about incorporation and about whether or not incorporating a buy to let limited company is the best way to offset the fi...

Leave a Reply