Mortgage to buy an SPV Ltd Company and property it sits in?

by Readers Question

10:49 AM, 28th December 2016
About 4 years ago

Mortgage to buy an SPV Ltd Company and property it sits in?

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Mortgage to buy an SPV Ltd Company and property it sits in?

I want to buy an HMO which is already held in a SPV Ltd company.business

I want to retain the same structure going forward and therefore want to buy the limited company.

I’m looking for a lender who understands the transaction, where ultimately they would be valuing the asset held in the limited company and basing their lending on this (i.e. a mortgage). I appreciate as a director I will need to provide personal guarantees, which is fine.

I’ve already discussed this with a few lenders, who have said they aren’t geared up for it – i.e. Paragon, Vida, Shawbrook

In appreciation of ideas ….

Priti


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Jiten Shah

12:00 PM, 31st December 2016
About 4 years ago

Buying the company means buying the shares of the company,

Very easy to do, & saves a fortune in SDLT as you only pay 0.5% SDLT,

In terms of borrowing, you have to go for commercial lenders,

One thing you have to be careful on is the debts in the company, as when you buy shares you actually also buy the liabilities and debts in the company,

Jiten Shah

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