Limited company semi-commercial mortgage
How investors fund a mixed-use property through a limited company or SPV, and what lenders require.
A limited company semi-commercial mortgage funds a mixed-use property held in a company, usually an SPV, rather than personally. The deposit is broadly the same at 25 to 30 percent, lenders are well set up for it, and directors normally give personal guarantees. The structure is a tax decision as much as a finance one.
At a glance
- StructureLimited company / SPV
- Deposit25 to 30%
- Usually needsDirector personal guarantees
- Decided withYour accountant
Buying semi-commercial property through a company
A limited company semi-commercial mortgage is a commercial loan to a company that owns a mixed-use property, rather than to an individual. The company holds the asset and is the borrower; the directors usually stand behind the loan personally.
Most investment semi-commercial property is bought this way, commonly through an SPV, a company set up solely to hold property. Lenders are well set up for it and treat it as the standard investment structure.
We are a finance arranger and introducer, not a lender, and not a tax adviser. Whether to use a company is a tax question for your accountant; we arrange the finance around the structure you choose.
Why investors use a limited company or SPV
- The tax treatment of rental income, which can differ from personal ownership
- Ease of building and holding a portfolio under one entity
- Cleaner separation of the property business from personal finances
- Flexibility on ownership, shares and succession
These are the reasons most landlords now buy investment property through a company. The right answer depends on your wider tax position, which is why it is an accountant's call.
How a limited company mortgage works
The company is the borrower and the property is the security. The deposit, rate and loan to value are broadly the same as for personal borrowing.
| Feature | Typical position |
|---|---|
| Deposit | 25 to 30% |
| Rate (mid-2026) | 6.5 to 8.5% pa |
| Loan to value | Up to 70 to 75% |
| Affordability | ICR on combined rent |
Lenders size the loan on the property's combined commercial and residential rent at an interest cover ratio, the same as for an individual investor.
Personal guarantees and what lenders require
Because an SPV often has no trading history or assets beyond the property, lenders almost always require personal guarantees from the directors. The guarantee makes the directors personally liable if the company cannot pay.
- Personal guarantees from the main directors or shareholders
- Details of the company structure and ownership
- Proof of the deposit and its source
- The directors' experience and credit profile
SPV versus a trading company
Lenders generally prefer a clean SPV whose only activity is holding property, because it is simple to assess and ring-fences the asset.
A trading company that also owns property can borrow, but lenders look more closely at the trading risk, and some restrict lending to clean SPVs. Where you trade from the commercial unit, the structure needs care, which we work through with your accountant.
Personal versus company borrowing compared
| Personal | Limited company / SPV | |
|---|---|---|
| Borrower | You | The company |
| Deposit | 25 to 30% | 25 to 30% |
| Guarantees | Not applicable | Director personal guarantees |
| Common for | Owner-occupiers | Investors and portfolios |
There is rarely a meaningful rate penalty for borrowing through a company on semi-commercial assets, because lenders see it as the normal investment structure.
Newly formed versus established companies
Lenders are comfortable with a newly formed SPV set up for the purchase, which is the norm; they do not require the company to have a trading history, because the loan rests on the property and the directors' guarantees.
What they do check is the directors behind it: their experience, credit profile and the source of the deposit. An established property company with a track record can sometimes access keener terms, but a clean new SPV with experienced directors is funded readily.
How we place a company case
We package the company structure, the personal guarantees and the property income, then run the case across the lenders most comfortable with SPV semi-commercial lending.
Because appetite for company borrowing, and for newly formed SPVs, varies across the panel, placing the case with the right lender is what secures the deposit and rate the asset deserves.
We also make sure the structure the lender sees matches the one your accountant has set up, with the right SIC codes and ownership, so the application does not stall on a mismatch between the company and the lending criteria.
- SPV
- A special purpose vehicle, a limited company set up solely to hold property.
- Personal guarantee
- A director's personal commitment to repay the loan if the company cannot, standard on SPV lending.
- Trading company
- A company that runs a business as well as, or instead of, holding property.
Limited company semi-commercial mortgage: common questions
Can my limited company buy a commercial property?
Yes. A limited company, commonly an SPV, can buy semi-commercial and commercial property with a deposit of typically 25 to 30 percent. Directors usually give personal guarantees.
Is it difficult to get a mortgage through a limited company?
No, it is the standard structure for investment semi-commercial property, and lenders are well set up for it. They will want personal guarantees from the directors and proof of the deposit.
Can a limited company get a 100 percent mortgage?
No. Semi-commercial lending sits up to a 70 to 75 percent loan to value, so a company needs a 25 to 30 percent deposit, the same as an individual. Additional security can reduce the cash required.
Should I buy a semi-commercial property personally or through a company?
It depends on your tax position, so take advice from your accountant. Most investors use a company or SPV; owner-occupiers more often borrow personally or through their trading company.
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