Buy-to-let limited company - Should you use an SPV to purchase property
Buying a rental property through a limited company - often a special purpose vehicle (SPV) - can offer tax and structuring advantages for some landlords. It is also different from buying in your personal name, with separate mortgage products, criteria and costs.
Funding Options by Tide works with more than 85 UK lenders and has helped over 17,000 businesses secure over £1bn in funding. Compare options in minutes and see if a limited company route could work for you.
What is a buy-to-let limited company and how it works
What is a buy-to-let limited company
A buy-to-let limited company is a UK company set up to purchase and hold rental property. Most landlords use an SPV limited company that only carries out property investment activities. Lenders assess the company and its directors, and offer limited company buy-to-let mortgages that differ from personal buy-to-let products.
How buying through a limited company works
Incorporate an SPV limited company and appoint directors and shareholders.
Open a business bank account in the company’s name.
Apply for a limited company buy-to-let mortgage. Lenders underwrite both the company and directors.
Complete the purchase. The company owns the property, collects rent and pays the mortgage.
Profits are taxed at corporation tax rates. You can extract income via salary or dividends.
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Calculations are indicative only and intended as a guide only. The figures calculated are not a statement of the actual repayments that will be charged on any actual loan and do not constitute a loan offer.
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Financial product information
Representative example*
• 7.63% APR Representative based on a loan of £50,000 repayable over 24 months.
• Monthly repayment of £2,252.94. The total amount payable is £54,070.56
*Some lenders may apply fees during the application process, please note that these are set and provided by these entities.
Annual Percentage Rates
Rates from 2.75% APR
Repayment period
1 month to 30 years terms
Potential benefits and downsides
Potential benefits and downsides
Potential benefits | Potential downsides |
Mortgage interest can be treated as a business expense within the company | Mortgage rates and fees are often higher than personal BTL |
Separation between personal and business assets | Personal guarantees are commonly required from directors |
Possible tax planning flexibility on retained profits and dividends | Extra admin - annual accounts, company filings, accountant costs |
Easier to add shareholders or transfer ownership over time | Stamp duty land tax and legal costs still apply |
Clearer portfolio structuring for multiple properties | Not suitable for everyone - personal tax position matters |
Eligibility and lender criteria
Company type
SPV limited company using standard SIC codes for property letting and management.
Directors and shareholders
Typically UK residents with acceptable credit history.
Affordability
Interest cover ratio stress tested on rental income.
Property
Standard BTL stock preferred. Some lenders accept HMOs and new builds with conditions.
Deposit and LTV
Many lenders cap at 75 percent LTV for limited company BTL.
Experience
First time landlords can be accepted by some lenders, though criteria may be tighter.
Typical costs and fees
Product fee - often a percentage of the loan.
Legal and valuation fees.
Company running costs - accountancy, Companies House filings, business banking.
Higher rate stress testing can affect borrowing amount.
If transferring a personally owned property into a company, consider potential capital gains tax and stamp duty land tax.
Setting up an SPV limited company
Choose a company name and incorporate with Companies House.
Use appropriate SIC codes for property investment.
Create shareholders’ agreement if needed.
Open a business bank account.
Maintain accurate records and annual accounts.
Limited company buy-to-let mortgages - what lenders look at
Rental coverage and stress tests.
Director income and credit history.
Property type, valuation and lettability.
Company structure and any existing debt.
Personal guarantees from directors in most cases.
Alternatives to limited company buy-to-let
Personal name buy-to-let mortgage.
Commercial mortgage for mixed-use or semi-commercial.
Bridging finance for refurbishment or fast purchases.
Property development finance for ground-up or heavy works.
How to apply with Funding Options by Tide
Tell us about your company, property and funding needs.
Compare offers from our panel of 85+ lenders.
Choose a lender and proceed to valuation and legals.
You could receive a decision in principle quickly, helping you move fast on a purchase.
Learn more about buy-to-let limited company UK
Is a limited company buy-to-let cheaper than buying personally
Not always. Company mortgages can have higher rates and fees, but mortgage interest is a company expense which may improve the net position for some landlords. The right choice depends on your tax profile.
Do I need to be an experienced landlord
Not always. Some lenders accept first time landlords, though criteria can be tighter and maximum LTV lower.
Can I move an existing property into a company
It is possible, but a transfer can trigger stamp duty and capital gains tax. Take professional advice before proceeding.
What deposit do I need for a limited company buy-to-let
Many lenders require at least 25 percent deposit, with 75 percent LTV a common cap.
Will I need to give a personal guarantee
Yes in most cases. Directors are usually asked to provide personal guarantees, even when borrowing via a company.
What SIC codes should I use for an SPV
Use standard property letting and management codes commonly accepted by lenders. Your accountant can advise which codes fit your activity.
Written by Vivek Seda | Senior Finance Writer
Reviewed by Vivek Seda
Last updated: September 2025
Funding Options by Tide has supported 17,000+ businesses and secured over £1bn in funding with a panel of 85+ lenders.
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Disclaimer: Funding Options is a credit broker, not a lender. Information is general and not tax or legal advice.
Please note that the information above is not intended to be financial advice. You should seek independent financial advice before making any decisions about your financial future.
It’s important to remember that all loans and credit agreements come with risks. These risks include non-payment and late-payment of the agreed repayment plan, which could affect your business credit score and impact your ability to find future funding. Always read the terms and conditions of every loan or credit agreement before you proceed. Contact us for support if you ever face difficulties making your repayments.
Funding Options, now part of Tide, helps UK firms access business finance, working directly with businesses and their trusted advisors. Funding Options are a credit broker and do not provide loans directly. All finance and quotes are subject to status and income. Applicants must be aged 18 and over and terms and conditions apply. Guarantees and Indemnities may be required. Funding Options can introduce applicants to a number of providers based on the applicants' circumstances and creditworthiness. Funding Options will receive a commission or finder’s fee for effecting such finance introductions.
Vivek Seda
Business Finance Manager
Vivek is the Asset Based Lending Manager at Funding Options by Tide. Vivek has been in the industry for over 10 years, working for both lenders and brokers. His product specialisms cover Asset Finance, Invoice Finance, Property Finance and structured transactions.