Using a limited company (SPV) to purchase buy-to-let property in the UK has become increasingly popular, particularly among expats, foreign nationals, and portfolio landlords. This guide explains how limited company buy-to-let mortgages work, who they suit, and how to access them from overseas. For more information, see stamp duty land tax guidance.
What Is an SPV for Buy-to-Let?
A Special Purpose Vehicle (SPV) is a UK limited company set up specifically to hold property. The company (not you personally) owns the buy-to-let property and takes out the mortgage in the company name. Rental income is received by the company, and profits are distributed to directors as dividends or retained within the company.
Why Do Expats and Foreign Investors Use Ltd Company Structures?
For overseas buyers and investors, the limited company route has several potential advantages: company profits may be subject to corporation tax rather than personal income tax rates; companies can offset mortgage interest against rental income for corporation tax purposes; SPV structures can be more straightforward to expand when acquiring multiple properties; and the ownership structure is clear for overseas investors and joint purchasers. Note: always seek advice from a qualified accountant before choosing a structure.
Getting a Buy-to-Let Mortgage in a Company Name from Abroad
Not all buy-to-let lenders accept applications from companies with overseas directors. However, a number of specialist lenders do accept foreign-director SPVs. Key criteria include: the company must be a UK-registered limited company (typically with SIC code 68100 or 68209); directors must provide personal guarantees; standard buy-to-let LTV limits apply (typically 75% maximum); and rental income must cover 125-145% of mortgage payment at a stressed rate.
Setting Up a UK SPV as an Overseas Buyer
A UK SPV can be set up entirely online through Companies House in a matter of hours. You do not need to be a UK resident to be a company director. You will need a registered office address in the UK, a UK bank account for the company, and shareholder and director details including passports and proof of address.
Ltd Company Buy-to-Let Rates vs Personal Name
Limited company buy-to-let mortgage rates are generally slightly higher than personal name rates, reflecting the additional complexity. However, the difference has narrowed considerably over recent years. Your broker will compare both routes and help you assess the total cost difference.
Frequently Asked Questions
Can a foreign national director get a UK buy-to-let mortgage through a limited company?
Yes. Several specialist UK lenders will consider buy-to-let mortgage applications from UK SPV companies with overseas or non-UK national directors, subject to personal guarantee requirements and standard lending criteria.
Do I need a UK bank account for a limited company buy-to-let?
Yes. You will typically need a UK business bank account for the SPV to receive rental income and service the mortgage. Several fintech banks can open accounts for UK-registered companies with overseas directors.
What is the minimum deposit for a limited company buy-to-let?
Most limited company buy-to-let lenders require a minimum 25% deposit, giving a maximum LTV of 75%. Some specialist lenders may require higher deposits for non-resident or foreign-director applications.
Is a limited company buy-to-let right for me as an expat?
It depends on your circumstances, tax position, number of properties, and long-term plans. A specialist mortgage broker and an accountant familiar with non-resident property investment should both be consulted before you decide.
Can I own multiple UK properties through one SPV?
Yes. An SPV can hold multiple properties, though some lenders have limits on the number of properties or total debt within a single company.
Speak to a Specialist
The Mortgage Story arranges mortgages for expats, foreign nationals, and overseas investors across the UK. Whole-of-market access. No obligation consultation.
Your home may be repossessed if you do not keep up repayments on your mortgage. The Mortgage Story is a trading style of The Mortgage Story Ltd, which is an Appointed Representative of Stonebridge Mortgage Solutions Ltd, authorised and regulated by the Financial Conduct Authority (FRN: 991223). This guide is for general information only and does not constitute financial advice.
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