Limited company structure for commercial mortgage investment: SPV, group company or trading company?
Most commercial investment mortgages in Liverpool are written into limited companies, but the question of whether to use a clean special-purpose vehicle (SPV), a group holding structure, or the existing trading company is one borrowers regularly get wrong. The lender treatment, the tax treatment and the future-flexibility implications are all different. This piece walks through the standard SPV structure (single asset, SIC code 68209, clean limited company), the group-holding alternative for portfolio investors, and when it makes sense to put commercial property on the trading company balance sheet. With reference to lender appetite at NatWest, Lloyds, Shawbrook, Cambridge & Counties and InterBay Commercial across each structure. Two worked examples: a four-asset Lark Lane L17 / Allerton L18 investment portfolio, and an Allerton L18 dental practice with property in the same limited company.
This piece is in preparation.
The outline below is the planned structure for the full piece. Send a topic suggestion or a follow-up question to enquiries@commercialmortgagesliverpool.co.uk and we will work it in.
Coming soon, guide to limited company structures for Liverpool commercial mortgage investment.
Outline
- The SPV standard: single asset, SIC 68209
- Group structure: holding company plus SPV per asset
- Trading company holding: when it makes sense
- Tax treatment by structure
- Lender appetite by structure
- Personal guarantee implications
- Future-flexibility: refinance, sale, gift
- Worked example: 4-asset Lark Lane L17 / Allerton L18 portfolio
- Worked example: Allerton L18 dental practice with property in same limited company
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