Financing
SPV (Special Purpose Vehicle)
Limited company set up specifically for property
Full Definition
A Special Purpose Vehicle is a limited company created specifically to hold property investments. SPVs benefit from full mortgage interest deductibility and corporation tax rates. Most buy-to-let lenders accept SPVs. Company formation costs £12-50 and annual accounts filing is required.
Put Your Knowledge Into Practice
Analyse any UK property deal with PropertyROI to calculate ROI, yields, and more.
Analyse a PropertyMore Financing Terms
LTV (Loan to Value)
Mortgage amount as percentage of property value
ICR (Interest Coverage Ratio)
Rental income compared to mortgage interest payments
Bridging Loan
Short-term finance for quick purchases or refurbishment
Remortgage
Replacing existing mortgage with new one
Equity
Property value minus outstanding mortgage
Leverage
Using borrowed money to amplify returns