SPV bridging loans for limited company property investors
An SPV bridging loan is short-term bridging finance where the borrower is a special purpose vehicle, a limited company set up to hold property, rather than you personally. Newly incorporated SPVs are accepted, with no trading history needed.
Rates from 0.53% a month on qualifying cases, from £26,000, typically up to 75% LTV, over 1 to 24 months. We match the property, the company structure and the directors to lenders that fit, before you commit to costs.
On this page
The short version
- The company borrows, the property is the security, and the directors usually give personal guarantees.
- Newly incorporated SPVs are accepted. Lenders assess the directors, the property and the exit, not the company's age.
- Pricing is broadly the same as personal bridging, from 0.53% a month on qualifying cases.
- Loans to a limited company are normally unregulated, whatever the property.
- Companies buying residential property usually pay higher-rate stamp duty. Build it into the deal before you bid.
- Whether an SPV suits you is a tax question. Take advice from an accountant first.
What is an SPV bridging loan?
An SPV bridging loan is a short-term loan secured on property where the borrower is a special purpose vehicle: a limited company set up to buy and hold property. It works like any bridge, with interest usually rolled up or retained and repayment from a sale or refinance, but the company is the legal borrower and its directors normally guarantee the loan.
In practice an SPV is an ordinary limited company registered at Companies House, usually with property SIC codes such as 68100, 68209 or 68320, and with no other trading activity. Keeping each investment in its own clean company makes lenders' checks simpler and keeps the property finances separate from any other business.
Newly formed companies are a normal part of this market. An SPV registered days before an auction is acceptable to most specialist lenders, provided it's set up correctly and has a UK bank account in the company's name by completion.
SPV bridging vs personal bridging
| SPV or limited company | Personal name | |
|---|---|---|
| Borrower | The company | You, as an individual |
| Guarantees | Directors usually guarantee personally | Not applicable, you're liable directly |
| Regulation | Normally unregulated | Unregulated for investment property. Regulated if you or close family will live there |
| Documents | Company documents plus directors' ID and credit | Your ID, address and credit |
| Rates | Broadly the same | Broadly the same |
| Stamp duty on residential purchases | Higher rates usually apply | Higher rates apply if you already own property |
| Exit | Sale, or a limited company buy-to-let mortgage | Sale, or a personal buy-to-let mortgage |
Why investors buy through an SPV
Many landlords now buy new investment property through a limited company. The main reasons are below, but they depend entirely on your circumstances, so take tax and legal advice before deciding.
Finance costs
Individual landlords get only basic-rate tax relief on mortgage interest. A company can generally deduct finance costs as a business expense before corporation tax.
Scaling a portfolio
Limited company buy-to-let lenders mostly assess each property on its rent, which can make growth easier than relying on personal income.
Succession planning
Shares in a property company can be passed on or restructured in ways that personally held property can't. Specialist advice is essential.
Separation
The property sits in the company. Personal guarantees mean you're still exposed if the loan isn't repaid, so the separation is partial.
Selling property you own personally to your own company is usually treated as a sale at market value, so stamp duty and capital gains tax can apply. Some reliefs exist in specific circumstances. Get advice from a property tax specialist before you start. Bridging can fund the transfer, but the tax position needs to work first.
SPV bridging loan rates and costs
Lenders don't usually charge more simply because the borrower is a company. LTV, property type, the exit, the valuation route and the directors' experience drive the price.
| SPV use | Rate from | Max LTV | Notes |
|---|---|---|---|
| Residential purchase or auction | 0.53% pm | Up to 75% | Standard residential, clean title |
| Light refurbishment | 0.62% pm | Up to 75% | Works funded on day one or in stages |
| Heavy refurbishment | 0.85% pm | Up to 70% | Staged drawdowns, full valuation |
| Portfolio purchase | 0.65% pm | Up to 70% | Several properties, cross-charged |
| Commercial or mixed-use | 0.75% pm | Up to 70% | Depends on the asset and tenancy |
| Land | 0.91% pm | Up to 65% | Depends on planning status |
Arrangement fees commonly 1% to 2%. Company cases can carry slightly higher legal costs for company searches and guarantee documents. No upfront Aura Capital broker fee.
Worked example: new SPV, auction purchase
The stamp duty estimate uses the higher rates for residential purchases in England: 5% on the first £125,000 and 7% on the next £25,000. It's an illustration. Check the figure for your purchase with your solicitor.
Stamp duty when a company buys
A company buying residential property in England or Northern Ireland usually pays the higher rates of stamp duty, currently 5 percentage points above the standard rates on every band. Above £500,000 a flat 17% rate can apply to company purchases unless a relief applies, which a genuine property rental business often qualifies for. Scotland and Wales have their own taxes and surcharges.
Stamp duty is paid from your own funds on completion, not from the bridge, so include it in the cash you need before you bid or exchange. The calculator at the top of the page estimates it for England and Northern Ireland.
Company structures accepted
Standard property SPV
A limited company with property SIC codes and no other activity. The widest lender choice, including new companies. Directors guarantee as standard.
Newly incorporated SPV
Set up for this purchase. No accounts or trading history needed. Lenders look at the directors' experience, credit and the deal itself.
Trading limited company
An existing business buying property. Accepted by many lenders, who'll want its accounts and may lend at lower LTV than for a clean SPV.
LLP
Used for some joint ventures. Fewer lenders accept LLPs, members usually guarantee, and the legal work takes longer.
Overseas company
Jersey, Guernsey, Isle of Man and similar. Available with specialist lenders, with fuller checks, usually lower LTV and a longer timeline.
Family investment company
Often treated like a standard SPV, provided the share classes and everyone owning 25% or more are clearly identified.
Personal guarantees: what you're signing
Almost every SPV bridge needs personal guarantees from the directors, and often from shareholders with a significant stake. Your solicitor should explain the guarantee before you sign it.
What it commits you to
- If the company doesn't repay, the lender can claim from you personally
- Usually the full debt, interest and enforcement costs
- Joint guarantors are often each liable for the full amount
- The lender may not have to pursue the company or the property first
What it usually isn't
- Not a charge over your home, unless you also give one
- Not open-ended: it ends once the loan is fully repaid
- Not always unlimited: some lenders accept capped guarantees
- Not identical between lenders, so wording matters
How to apply for an SPV bridging loan
Initial assessment
Send the property, price or value, loan, term, exit and company details. We check lender appetite for both the property and the structure, and discuss it with suitable lenders.
Company documents
Certificate of incorporation, articles, register of people with significant control, company bank details, ID and address for directors and 25%+ shareholders, and accounts if trading.
Valuation and underwriting
A desktop or automated valuation may be accepted for standard property. The lender checks the property, the company, the directors' credit and the exit.
Legal work and completion
The charge is registered against the company's title and the guarantees are signed. Company cases often take a few extra days of legal work.
Timing depends mainly on the valuation route and the legal work. Having the company documents ready from the start makes the biggest difference.
Recent Aura Capital transactions
SPV bridging eligibility
The company
Registered at Companies House, ideally with property SIC codes, a UK bank account in its name, and everyone owning 25% or more identified. New companies accepted.
The directors
UK residents and non-UK nationals with specialist lenders. Personal credit is checked. First-time investors accepted. No minimum personal income on most bridges.
The property
Residential, commercial, mixed-use or land, freehold or leasehold, including property that can't be mortgaged yet. Minimum values apply.
The exit
Usually a sale or a limited company buy-to-let mortgage. A bridge-to-let can agree both stages upfront.
Adverse credit
Directors' adverse credit doesn't automatically rule out a case. Some lenders consider defaults, CCJs and past arrears where the property and exit are strong, often at lower LTV. Telling us at the start helps us choose suitable lenders, and if the exit is a refinance, the buy-to-let lender will check credit too. See bad credit bridging loans.
SPV bridging loan FAQs
What is an SPV bridging loan?
A short-term bridging loan where the borrower is a special purpose vehicle, a limited company set up to hold property. The property is the security and the directors usually give personal guarantees.
Can a newly incorporated SPV get a bridging loan?
Yes. Most specialist lenders accept new companies with no trading history. They assess the directors, the property and the exit. The company needs to be correctly set up, with a UK bank account in its name.
Are SPV bridging rates higher than personal bridging?
Not usually. Rates start from 0.53% a month on qualifying cases and depend on LTV, property type, the exit and the directors' experience rather than on the company structure.
Do I need to give a personal guarantee?
Almost always. Directors, and often significant shareholders, guarantee the loan. If the company doesn't repay, the lender can claim from the guarantors personally. Have your solicitor explain the wording before you sign.
Is SPV bridging regulated?
Loans to a limited company are normally outside FCA mortgage regulation, whatever the property. If you plan to live in a property, borrowing in your own name may be regulated and is a different product.
Does a company pay more stamp duty?
Usually, on residential property. In England and Northern Ireland the higher rates are currently 5 percentage points above the standard rates, and a 17% flat rate can apply above £500,000 unless a relief applies. Scotland and Wales have their own rules.
What SIC codes should my SPV have?
Lenders usually look for property codes such as 68100 (buying and selling own real estate), 68209 (letting and operating own or leased real estate) or 68320 (managing real estate on a fee or contract basis). Check with your accountant when setting up the company.
Can I move my existing properties into an SPV with bridging?
Bridging can fund the company buying them, but the transfer is usually treated as a sale at market value, so stamp duty and capital gains tax can apply. Take tax advice before you start.
How fast can an SPV bridge complete?
Timing mainly depends on the valuation route and the legal work. Company cases often need a few extra days for company searches and guarantees. Having the company documents ready at the start is the biggest help.
Can overseas companies or non-UK directors borrow?
Yes, with specialist lenders. Expect fuller identity and ownership checks, usually lower LTV and a longer timeline.
Who wrote this page
Harry Baker
Harry holds an MSc in Real Estate & Finance from the University of Reading. He arranges bridging finance for investors, developers and limited companies across the UK.
Related bridging products
Each product page has its own criteria and rates.
Fund your next purchase through your SPV
Send the property, price, loan, term, exit and company details. We'll confirm which lenders fit the structure and the likely terms, before you commit to valuation or legal costs.
Your property may be repossessed if you do not keep up repayments on a loan secured on it. Directors who give personal guarantees may be personally liable. All figures are indicative and are not an offer of finance. Lending is subject to lender criteria, underwriting, valuation and legal due diligence. Aura Capital is a trading name of Chammosair Limited, registered in England & Wales, company no. 15786496. Aura Capital is a broker, not a lender, and is not authorised or regulated by the Financial Conduct Authority. We do not give regulated, tax or legal advice.