What Does SPV Mean In UK Property Investment?
The acronym ‘SPV’ is an abbreviation of the phrase “Special Purpose Vehicle”. In the world of property investment and property finance/mortgages, it is referring to a limited company set up specifically for property investment.
The limited company cannot carry out any other types of “trading” now or in the past. Its sole purpose must be to hold property investments. Even certain types of property business may be considered trading, such as serviced accommodation, estate/letting agents or property construction and development.
How To Set Up A SPV For Property Investment?
It’s possible to set up a new limited company as a SPV yourself or by using a professional, such as an accountant.
It really is just as simple as heading over to Companies House and registering a new ltd company with the correct SIC (Standard Industrial Classification) code. It costs about £12.
If you don’t feel confident doing it yourself, then a professional such as an accountant will usually help (for a fee of course).
What SIC Codes Should I Use For A New SPV?
The SIC codes related to property investment are:
68100: Buying and Selling of own Real Estate
68209: Letting and Operating of own or leased Real Estate.« Back to Glossary Index