Limited Company Bridging Loans | SPV | Platinum Global

Limited Company Bridging Loans

Limited Company Bridging Loans

The majority of professional property investors in the UK now purchase through limited companies or Special Purpose Vehicles (SPVs). This structure offers tax efficiency, liability protection, and portfolio scalability — but it also creates challenges with conventional mortgage lenders, many of whom will not lend to newly incorporated SPVs, foreign-registered companies, or companies with complex ownership structures. Limited company bridging loans are specifically designed for corporate borrowers, providing the same speed and flexibility as personal bridging finance within a structure that accommodates the realities of professional property investment.

Platinum Global Bridging Finance arranges limited company and SPV bridging loans from our office at 64 Knightsbridge, London. We access specialist corporate bridging lenders across our panel of 100+ lenders, structuring facilities from £250,000 to £25 million for UK and offshore companies. Indicative terms are delivered within 24 hours.

What Is a Limited Company Bridging Loan?

A limited company bridging loan is a short-term, property-secured facility where the borrower is a corporate entity — typically a UK limited company, an SPV formed specifically to hold a single property or project, a Limited Liability Partnership (LLP), or an overseas-registered company purchasing UK property. The loan is secured against property owned by or being acquired by the company, and is repaid through a defined exit strategy — usually a refinance onto a long-term mortgage, a sale of the property, or completion of a development.

The key difference from personal bridging loans is the underwriting process. The lender assesses the company structure, its directors and ultimate beneficial owners (UBOs), the source of the company’s deposit funds, and the corporate exit strategy. For SPVs — which typically have no trading history, no assets, and no accounts beyond the target property — the lender relies heavily on the personal net worth, credit profile, and property track record of the directors or guarantors.

All limited company bridging loans are unregulated by default, as the borrower is a corporate entity rather than an individual. This means fewer regulatory requirements, faster processing, and greater flexibility on terms — but it also means the consumer protections that apply to regulated bridging (for example, cooling-off periods) do not apply.

Why Use a Limited Company for Property Purchases?

Tax Efficiency: The Section 24 Factor

Since April 2020, mortgage interest on buy-to-let properties held by individuals is no longer fully deductible against rental income — a change introduced under Section 24 of the Finance (No. 2) Act 2015. Instead, individual landlords receive a basic-rate tax credit of 20%, regardless of their marginal tax rate. For higher-rate (40%) and additional-rate (45%) taxpayers, this significantly increases the effective tax burden on leveraged rental income.

Properties held within a limited company are not affected by Section 24. The company can deduct mortgage interest as a business expense in full, reducing Corporation Tax liability (currently 25% on profits above £250,000). For a higher-rate taxpayer with a leveraged portfolio generating £100,000 of rental income with £60,000 of mortgage interest, the tax saving from holding through a company rather than personally can exceed £10,000 per year. Over a portfolio of 10+ properties, the cumulative saving is substantial and represents the primary driver of the corporate purchase trend.

Liability Protection

Holding each property or group of properties in a separate SPV limits liability. If one property encounters financial difficulty — a major structural defect, a tenant liability claim, or an environmental issue — the liability is contained within the SPV and does not extend to the investor’s other assets or properties held in different companies. This ringfencing of risk is a fundamental principle of corporate structure that becomes increasingly important as portfolio size grows.

Portfolio Scalability

Institutional lenders, private banks, and specialist BTL lenders are more comfortable lending to corporate structures for portfolio acquisitions. An investor building a portfolio of 10, 20, or 50+ properties can structure each acquisition through a separate SPV, creating a clean corporate structure that makes refinancing, selling individual assets, or bringing in co-investors straightforward. Some lenders also offer portfolio-level facility agreements that cover multiple SPVs under common ownership, simplifying ongoing management.

Inheritance and Estate Planning

Holding property in a company structure can simplify inheritance planning. Shares in a company can be transferred more efficiently and with greater flexibility than individual property titles. The corporate structure provides options for multi-generational wealth planning, including the use of family investment companies (FICs), trusts holding company shares, and staged share transfers that spread the inheritance tax liability over time.

When Limited Company Bridging Is Used

SPV Purchases Requiring Speed

An investor has identified a property — perhaps at auction, through an off-market deal, or in a competitive market like London — and needs to complete quickly through a newly formed SPV. Standard BTL lenders will not lend to an SPV with no trading history, no filed accounts, and no established income. A bridging lender will, assessing the deal on the property value, the LTV, the exit strategy, and the director’s personal profile and experience.

Portfolio Acquisitions

Investors acquiring multiple properties simultaneously through a corporate structure need aggregated facilities that standard lenders cannot provide within competitive timescales. We structure large bridging loans for portfolio acquisitions through limited companies, with cross-charged security across multiple assets reducing the overall cost and simplifying the legal process.

Refurbishment Before Refinance (BRRR Strategy)

The Buy, Refurbish, Refinance, Rent (BRRR) strategy is one of the most common professional investment approaches in the UK. An SPV acquires a property that requires works before it meets the criteria for a long-term BTL mortgage. The bridging loan funds the purchase and refurbishment, with the exit being a refinance onto a corporate BTL mortgage at the improved value. The bridging period is typically 6-12 months — long enough to complete the works, obtain a new valuation, and arrange the long-term finance.

Offshore and Foreign Company Structures

International investors purchasing UK property through BVI, Jersey, Guernsey, Isle of Man, or other offshore structures require bridging lenders experienced in cross-border corporate lending. The due diligence requirements are more extensive — involving verification of the corporate chain, identification of UBOs, source of funds checks, and compliance with UK anti-money laundering regulations — but facilities are available from specialist lenders. We arrange facilities for offshore companies purchasing UK property, particularly in Prime Central London markets including St James’s, Knightsbridge, and Mayfair.

Development Vehicles

Property developers typically structure each development through a dedicated SPV. This is standard practice for lender, legal, and accounting purposes — the development costs, revenue, and liabilities are contained within the project company. The bridging loan funds the site acquisition through the SPV, with the exit being a transition to full development finance or a sale of the site with planning permission.

Joint Ventures and Co-Investment

When two or more investors purchase property together, a limited company or LLP provides the clearest legal structure for defining ownership shares, profit distribution, and exit arrangements. The bridging loan is taken in the company’s name, with the terms of the JV agreement governing the relationship between the investors. This is significantly cleaner than joint personal borrowing, where the liabilities and rights of each party can be ambiguous.

Worked Example: SPV Purchase with BRRR Exit

An experienced investor forms an SPV (Newco Properties Ltd) to acquire a 3-bed Victorian terrace in Peckham for £425,000. The property requires £50,000 of refurbishment. Estimated post-works value: £550,000.

Bridging facility: £340,000 (80% of purchase price) plus £50,000 refurbishment drawdown = £390,000 total facility. The refurbishment element is drawn down in 2 tranches as works progress. Interest rate: 0.65% per month on drawn funds, rolled up. Term: 12 months. Total interest (assuming average drawn balance of £370,000 over 8 months): approximately £19,240. Arrangement fee at 2%: £7,800. Valuation fee: £450. Legal fees: £2,800. Total bridging cost: approximately £30,290. Exit: corporate BTL mortgage at 75% LTV on the post-works value of £550,000 = £412,500. This repays the bridge in full and leaves the investor with a performing rental asset held in a tax-efficient corporate structure, with approximately £137,500 of equity and no personal liability beyond the initial deposit.

Limited Company Bridging: What We Arrange

Loan sizes from £250,000 to £25 million. LTV up to 75% on residential, up to 70% on commercial. Available to UK limited companies, SPVs (including newly formed companies with no trading history), LLPs, overseas companies registered in any jurisdiction (subject to lender appetite and AML compliance), and trust structures. Personal guarantees from directors or beneficial owners are typically required, though non-recourse structures are available at lower LTVs from selected lenders. Interest rates from 0.55% per month. Terms from 1 to 24 months. We charge no broker fee on facilities of £500,000 or above.

What Lenders Look For in Corporate Bridging Applications

The company structure matters, but lenders look through the corporate veil to assess the people behind it. The key factors in a corporate bridging application are the property value and requested LTV, the exit strategy and its credibility (a confirmed BTL mortgage AIP is the strongest exit), the directors’ and UBOs’ personal net worth and liquidity, their property investment experience and track record (number of properties owned, development experience, and history of successful bridging exits), the source of the company’s deposit funds with a full audit trail, the corporate structure and jurisdiction of incorporation (UK companies are simplest; offshore requires additional due diligence), and any existing charges, liabilities, or county court judgments within the corporate group.

For newly formed SPVs with no trading history, the directors’ personal track record and net worth effectively underwrite the application. A director with a portfolio of 15 rental properties and a history of successful bridging transactions will receive significantly better terms than a first-time investor with no track record, even if the property and LTV are identical.

Frequently Asked Questions

Can a newly formed SPV get a bridging loan?

Yes. Bridging lenders routinely lend to newly formed SPVs — this is one of the most common corporate bridging scenarios. The lender assesses the directors and the deal rather than the company’s trading history. The company can be formed the same week as the application.

Do directors need to provide personal guarantees?

Most lenders require personal guarantees (PGs) from directors or beneficial owners on corporate bridging loans. The PG covers the lender’s exposure in the event that the property value declines below the loan amount. Some lenders offer non-recourse structures at lower LTVs (typically up to 55-60%), where the property is the sole security and no PG is required — this is more common on larger facilities with strong security.

Can offshore companies get UK bridging loans?

Yes. We arrange bridging for companies registered in BVI, Jersey, Guernsey, Isle of Man, Cayman Islands, Luxembourg, and other offshore jurisdictions. The lender panel is narrower than for UK companies, additional due diligence is required (KYC/AML on UBOs, source of funds verification, corporate registry extracts), and processing takes slightly longer — but facilities are available from specialist lenders experienced in cross-border corporate lending.

How quickly can a limited company bridge complete?

UK limited company bridging typically completes in 7-14 working days — comparable to personal bridging. Offshore company structures may take 2-4 weeks due to additional due diligence requirements. For urgent cases, see our fast bridging loans page.

Can I use a limited company bridge for a residential property I intend to live in?

No. If you intend to occupy the property as your primary residence, the loan must be regulated and the borrower must be an individual, not a company. Limited company bridging is for investment, buy-to-let, commercial, and development purposes only.

Does Platinum Global charge a fee?

No broker fee on facilities of £500,000 or above.

Related Bridging Finance

• Bridging Loans — our main UK bridging loans page
• Large Bridging Loans
• Second Charge Bridging Loans
• Auction Bridging Finance
• Chain Break Bridging Loans
• Fast Bridging Loans
• Development Finance
• London Bridging Loans