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I am setting up a Limited Company for the first time and want to know which SIC code(s) I would need for setting up a Limited Company for buying and letting out property.
I have been told that 68100 (Buying and selling own real estate) is essential for lenders.
But I have also been told that I would need 68201 (Renting and operating of housing association real estate if I was intending to manage the properties as well (which I may want to do further down the line, though initially I would use a letting agent).
Furthermore, I have also been told that I need 68209 (Other letting and operating of own or leased real estate.
Finally, I'm a bit confused about the difference between limited company / SPV.
If I have two BTL individually held and I'm looking to incorporate for the purchase of the next one, I don't need a SPV, right?
Please help a confused landlord!
Many thanks in advance!
The least SIC code the better for the mortgage lenders as they prefer a simple buy and owned property limited company. So ideally only one SIC code. Lenders do not want other activities by the company, including lettings etc.... complicate the books. Hence the SPV / SIC code requirement.
The limited company is the SPV.
Director of Tax Peplows Limited
CTA ACA FCCA
You can use all three of them SIC Codes, the main ones are 68100 and 68209 - you can use both without problems.
This FAQ on What you need to know about Limited Company Buy to Let may be of assistance.
When we talk about SPV's we are talking about Limited Companies, there are no difference in that respect. The name a "Special Purpose Vehicle" is loosely translated as in the Vehicle (a company) we are going to use for the Special Purpose of buying and renting out property. The reason we use the term is that mortgage lender want that to be the only purpose of the company. They don't want existing trading companies, such as a window cleaner company buying a property. They also don't want you to later start selling things on eBay using the same company.
_________________________________________________________________________The above post is not financial advice, its often me rambling - passing time on a coffee break.If you are looking for the Best BTL Mortgage? Call the Specialist Team at Bespoke Finance._________________________________________________________________________