Limited company structure for commercial mortgage investment: SPV, group company or trading company?
Most commercial investment mortgages in Bristol 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 Gloucester Road BS7 / Whiteladies Road BS8 investment portfolio, and a Clifton BS8 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@commercialmortgagesbristol.co.uk and we will work it in.
Coming soon, guide to limited company structures for Bristol 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 Gloucester Road BS7 / Whiteladies Road BS8 portfolio
- Worked example: Clifton BS8 dental practice with property in same limited company
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