Since Section 24 removed mortgage interest relief for individual landlords, thousands of London investors have moved — or are considering moving — to a limited company structure. We advise on and arrange SPV buy to let mortgages across 90+ lenders, alongside a trusted referral to a specialist property tax accountant.
You have probably heard other landlords talking about buying through a company. Here is what it actually means, why people do it, and the honest trade-offs involved.
There is no single right answer — it depends entirely on your personal tax situation, how many properties you own or plan to own, whether you want to keep the rental income inside the company or draw it out, and your long-term goals as a landlord.
What we do is model both options honestly using your actual figures — your income, your tax bracket, the property you want to buy, and the rental income it will generate. We then show you the total cost and tax liability under each scenario so you can make an informed decision. We do not push one structure over the other — we give you the information to choose.
For most higher rate taxpayers buying their second or subsequent investment property, the SPV route is more tax efficient. For basic rate taxpayers buying a single investment property, personal ownership is often simpler and cheaper overall. But there are exceptions in both directions — which is exactly why taking advice matters.
| Factor | Personal | Ltd Company SPV |
|---|---|---|
| Mortgage interest tax relief | 20% credit only | Fully deductible |
| Tax rate on profits | Up to 45% | 19–25% corp tax |
| Mortgage rates | Lower rates | Slightly higher |
| Admin & accountancy | Simple | More complex |
| Portfolio growth | Less efficient | Retain & reinvest |
| Best suited to | Basic rate taxpayers | Higher rate taxpayers |
Key facts about limited company buy to let mortgages in 2024/25.
Important: We always recommend taking specialist property tax advice before deciding on your structure. We refer clients to trusted accountants who specialise in landlord tax — not general practitioners.
More steps than a standard buy to let — but we handle every one of them.
We start by understanding your full picture: your personal income, your tax rate, the property you want to buy, expected rental income, your existing portfolio (if any), and your long-term goals. We then model the personal vs SPV comparison using your real figures, explain the results in plain English, and recommend whether an SPV genuinely makes sense for you. If we do not think it does, we will tell you so.
Before we approach any lender, we check that your limited company meets their requirements. This includes verifying the SIC code (68100 or 68209), confirming the company has no other trading history, and reviewing the director and shareholder structure. Many lenders require all directors and shareholders with more than 20–25% of shares to be named on the mortgage. We advise on the ideal setup before you incorporate — saving you from costly mistakes later.
We are mortgage advisers — not tax advisers. For the tax structuring decision, we refer you to one of our trusted specialist property tax accountants who work with landlords every day. They confirm the tax analysis, advise on the most efficient shareholder and director structure, and ensure your company is set up correctly from a tax perspective. This step protects you — and us — from making a decision based on incomplete tax information.
SPV applications require more documentation than personal buy to let applications: company registration documents, the Memorandum and Articles of Association, SIC code confirmation, director and shareholder ID verification, and in some cases a business plan. We prepare all of this, select the most appropriate lender for your company structure and property type, and submit the full application. We manage any queries from the underwriter directly.
Once your first SPV purchase completes, we work with you on the longer-term strategy. This includes reviewing your mortgage deal at renewal, advising on releasing equity for further purchases, and helping you add further properties to the same company or a second SPV. Many of our SPV landlord clients in London and Essex have grown from one property to three, four, or five — with us arranging the mortgage at each stage.
The questions we get asked most by landlords considering the SPV route. Call us if yours is not here.
An SPV — Special Purpose Vehicle — is a limited company set up specifically and solely to hold investment property. Rather than buying in your personal name, the company owns the property, receives the rent, and pays corporation tax on the profits. You are a director and shareholder of the company. The main reason landlords use this structure is tax efficiency — particularly since Section 24 removed mortgage interest relief for individual landlords.
Most lenders require the company to be a pure SPV — meaning it has no trading history other than holding property. If your existing limited company has traded in a different business, most SPV lenders will decline it. You will typically need to set up a new company with the correct SIC code (68100 or 68209) and no other trading activity. We check this at the outset and advise on the correct setup before you incorporate — avoiding wasted applications.
Technically yes, but it is rarely straightforward or cost-effective. Transferring a property from personal ownership to a limited company is treated as a sale — you may trigger capital gains tax on the gain and stamp duty land tax on the transfer value. Some reliefs may apply in specific circumstances, but this is a complex area that requires specialist tax advice before proceeding. We strongly recommend speaking to a property tax accountant before attempting to transfer an existing portfolio.
Typically 0.2% to 0.5% higher than equivalent personal buy to let products. This sounds significant but in practice is often much less than the tax saving for higher rate taxpayers. For example, if an SPV saves you £3,600 per year in income tax but the higher mortgage rate costs you an additional £600 per year, you are still £3,000 per year better off. We model this comparison for your specific numbers so you can see the net position clearly.
Most lenders require one of two SIC codes: 68100 — Buying and selling of own real estate — or 68209 — Other letting and operating of own or leased real estate. If you set up your company with the wrong SIC code, most SPV lenders will decline the application. We advise on this before incorporation. If you have already incorporated with the wrong code, it is possible to change it via Companies House — we advise on how to do this correctly.
Most SPV lenders require all directors and all shareholders with more than 20% to 25% of shares to be named as guarantors on the mortgage — meaning they undergo a full credit and income check. This is an important consideration when deciding on the shareholder structure of your company. We advise on the implications before you set up the company, so the structure works for both the mortgage application and your longer-term tax planning.
Free consultation. No obligation. We model personal vs SPV for your actual numbers — so you make a decision based on facts, not guesswork.
SPV landlords often ask us about these too.