Buy-to-Let Purchase Through a Newly Established SPV Limited Company
Case Summary
Two directors purchased a £627,500 single-let investment property through a newly established SPV limited company. Despite the new SPV structure, one director being a first-time landlord and the property’s higher flood-risk profile, a suitable lender was identified and the clients were able to proceed with the purchase.
Purchase / Property Value
£627,500
Loan Amount
£470,625
Total Facility Amount
Deposit / Client Contribution
£156,875
Loan to Value (LTV)
75%
Finance Term
20 Years
Case / Finance Type
Buy-to-Let
Case Circumstances
The clients were two directors purchasing a single-let investment property through a newly established SPV limited company. One director was a first-time landlord with no previous landlord experience. The clients required an interest-only mortgage and a lender without a minimum personal income requirement. The £156,875 deposit was being introduced into the company by way of a director’s loan. The property was also located in an area identified as having a higher flood-risk profile.
Main Challenges
Newly Established SPV
The property was being purchased through a newly established SPV limited company, so lender selection needed to take account of criteria for newly formed company borrowers.
First-Time Landlord
One of the directors had no previous landlord experience. This needed to be considered alongside the new SPV structure when identifying suitable lenders.
Higher Flood-Risk Property
The property was located in an area identified as having a higher flood risk. A lender was therefore required that could consider the property subject to satisfactory underwriting, valuation and any relevant property checks.
No Minimum Personal Income Requirement
The clients required a lender that did not impose a minimum personal income requirement on the directors, which further narrowed the range of suitable options.
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Purchase / Property Value
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Total Facility Amount
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Case Summary
Two directors purchased a £627,500 single-let investment property through a newly established SPV limited company. Despite the new SPV structure, one director being a first-time landlord and the property’s higher flood-risk profile, a suitable lender was identified and the clients were able to proceed with the purchase.
Loan Amount
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Loan to Value
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Deposit
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Loan to Value
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Amir Shojaee
Director and Founder of PBSBrokers
CeMAP Qualified Mortgage Adviser
At PBSbrokers, we offer a free initial consultation to review your income, deposit, affordability, credit profile, and mortgage objectives. Whether your case is straightforward or more complex, we'll help you understand the options that may be available and guide you through the next steps.