The majority of professional property investors in the UK now hold their portfolios through limited companies — primarily for tax efficiency, but also for liability protection and portfolio flexibility. As a result, the ability to access bridging finance through a limited company or SPV is not a niche requirement — it's the standard for most serious investors. This guide covers everything you need to know about how company bridging works, what lenders require, and how to structure your application.
An SPV (Special Purpose Vehicle) is a limited company incorporated specifically to hold property. Unlike a trading company, it has no other business activity — its sole purpose is to own, develop, or let one or more properties. The use of SPVs has exploded since the 2015–2017 tax changes that restricted mortgage interest relief for individual landlords.
Key reasons investors use SPVs:
Most specialist bridging lenders are fully comfortable with limited company and SPV applications. The process is broadly similar to a personal application with some additional requirements:
| Requirement | Personal Application | Limited Company Application |
|---|---|---|
| Identity verification | Borrower only | All directors + 25%+ shareholders |
| Credit checks | Borrower | Company + all directors/shareholders |
| Personal guarantees | Not applicable | Required from directors/shareholders |
| Company documents | Not required | Certificate of incorporation, memorandum, accounts |
| Security | First/second charge | First/second charge + debenture over company |
| Completion time | 5–14 days | 7–21 days (extra legal work) |
The personal guarantee is the most important document in a limited company bridging application. It means that if the company cannot repay the loan, the guarantors are personally liable for the debt. This effectively removes the limited liability protection for this specific loan.
Key points to understand about personal guarantees on bridging loans:
💡 Important: The personal guarantee means a company bridging loan carries personal risk even though the loan is in the company's name. Understand the implications fully before proceeding — particularly in joint venture structures where you may be guaranteeing a co-investor's share of the debt.
Marginally, yes — but less than most people assume:
| Cost Factor | Personal | Limited Company |
|---|---|---|
| Monthly interest rate | Base rate | +0.05%–0.15%/month typically |
| Arrangement fee | Base fee | Broadly similar |
| Legal fees | Standard | Higher — company searches, debenture, extra docs |
| Completion timeline | 5–14 days | 7–21 days |
The marginal additional cost of company borrowing is almost always outweighed by the tax benefits for investors paying higher rate income tax. A £200,000 bridging loan at 0.10%/month extra = £200/month = £1,200 over 6 months — trivial compared to the corporation tax saving on profits.
A common structure for development projects or larger acquisitions is a joint venture SPV — a company set up specifically for a single project, with two or more investors as shareholders. Each investor contributes equity, takes a proportionate share of profits, and signs a personal guarantee for their share (or jointly and severally for the full amount).
Key considerations for JV SPV bridging:
Yes — and this is one of the major advantages of bridging finance over term mortgages. Many buy-to-let mortgage lenders require the SPV to have 2 years of trading history. Bridging lenders don't. A company incorporated last week, with a suitable property as security and personal guarantees from creditworthy directors, can access bridging finance immediately. This makes bridging the natural first step when setting up a new SPV for a property acquisition.
We arrange bridging finance for SPVs and limited companies every week. Tell us about the property and your company structure — we'll find the right lender and get terms today.
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