SPV Share Purchase Mortgage
Most limited company property finance involves setting up a fresh SPV and buying a property into it – see our UK Limited Company Mortgages page for that route. A share purchase mortgage is different – you’re buying shares in a company that already owns the property, rather than buying the property directly, which is genuinely a distinct legal transaction, not just a variation on a standard purchase.
We arrange share purchase mortgages for expat clients buying into existing property-holding companies, though it’s a specialist corner of the market with a smaller lender panel than standard SPV purchases.
Why this happens, and why it’s different
Buying into an existing SPV usually comes up when a family arrangement, business partnership, or existing landlord wants to bring in a new shareholder without transferring the property itself – which would trigger its own stamp duty and legal costs. Instead, you buy shares in the company, and the property stays where it is, owned by the same legal entity throughout.
Because the lender is financing a share transaction rather than a property purchase, the legal work and valuation process both look different to what you’d expect from a standard mortgage – the lender needs comfort on the company’s structure and existing liabilities, not just the property itself.
What we typically need to arrange this
- Full company accounts and structure, including any existing debt held by the company
- Details of the other shareholders and the terms of the share transfer
- A valuation of the property itself, alongside due diligence on the company
Our fees
£295 application fee, 1% completion fee.
Frequently Asked Questions
How is this different from a standard SPV mortgage?
A standard SPV mortgage finances buying a property into a newly formed company. A share purchase finances buying shares in a company that already owns a property.
Do I need to know the other shareholders?
Yes, typically – the lender will want to understand the full ownership structure before and after your purchase.
Does the company’s existing debt affect my application?
Yes, any existing borrowing held by the company factors into the lender’s assessment.
Is the legal process longer than a standard purchase?
Often yes, given the need to review company structure and existing liabilities alongside the property itself.
Can I use this to consolidate a family property arrangement?
Yes, this is actually one of the more common reasons clients approach us for this specific product.
Get in touch with details of the company structure and share arrangement, and we’ll assess which lenders could support it.
