| Property | Three-bedroom semi-detached house |
|---|---|
| Location | Reading, Berkshire |
| Client | Brother and sister setting up their first joint SPV, both employed |
| Product | Limited company BTL |
The challenge
The siblings wanted equal ownership and had very different incomes. When tested in their own names, the rent did not support 75% LTV for one of them.
What we did
We recommended a new SPV with equal shareholdings, with both siblings as directors and guarantors. Limited company lending is assessed at a lower interest cover ratio than personal lending for higher-rate taxpayers. That allowed the full 75% LTV. We coordinated the company formation and bank account opening around the lender's application.
The outcome
The purchase completed in the company's name with both siblings holding equal shares.
Limited company buy-to-let mortgagesBuy-to-let mortgages for property held in a limited company or special purpose vehicle (SPV).
Learn moreImportant: Most buy-to-let mortgages are not regulated by the FCA. Your property may be repossessed if you do not keep up repayments, and a receiver of rent may be appointed.