Quick answer: Yes, you can buy commercial property through a limited company or an SPV (special purpose vehicle). Lenders are comfortable with these structures, but they usually ask for a personal guarantee from the directors and look at the property, the income and the credit file of the borrower and guarantors. Telling your broker the structure early helps, because it affects which lenders can help.
Last reviewed: 29 October 2026. Written by Jaff Sadi, founder and Managing Director of Sadi's Commercial Finance, an NACFB and FIBA member firm based in Chingford, East London.
Can a limited company get a commercial mortgage?
Yes. Many commercial properties are held by limited companies, and lenders are used to lending to them. The company is the borrower and the property is the security. Lenders will normally also assess the directors and any shareholders who give guarantees.
What is an SPV and why do investors use one?
An SPV is a limited company set up for a specific purpose, usually to hold a property or a small group of properties. Investors often use one to keep a property separate from other business activity. A newly formed SPV has no trading history of its own, so lenders look at the property, the rental income and the people behind the company instead.
Personal guarantees
Personal guarantees are common on limited company and SPV borrowing. That is normal rather than a red flag, but you should understand what you are signing. A personal guarantee means that if the company cannot repay, the guarantor can be asked to. Take legal advice before you sign.
Limited company and SPV at a glance
| Trading limited company | SPV | |
|---|---|---|
| What it is | An operating business that buys or refinances a property | A company set up to hold a specific property or group of properties |
| Track record | Accounts show how the business has traded | Often newly formed, so there are no accounts of its own |
| What lenders focus on | Trading profit, the property and the directors | The property, the rental income and the people behind the company |
| Personal guarantee | Usually required | Usually required |
What lenders look at
- The property. Type, condition, location, tenure and how easily it could be sold.
- The income. Trading profit for an owner-occupied purchase, or rental income for an investment, tested against the mortgage payment.
- The directors and guarantors. Experience, credit history and existing borrowing.
- The company. Accounts where they exist, ownership structure and any other companies connected to it.
- The deposit. How much is going in and where it has come from.
What to prepare
- Company details and a simple structure chart showing who owns what
- Identification and address verification for all directors and shareholders
- Filed accounts and up to date management figures where the company has been trading
- Details of the property, including tenancy agreements on an investment purchase
- Evidence of the deposit and its source
What affects the cost
We cannot quote a single rate, because lenders price each case individually. Pricing depends on the property, the loan to value, the strength of the income and the credit file of the borrower and any guarantors. Costs to plan for beyond interest include a lender arrangement fee, a valuation fee and legal fees on both sides. We normally charge a broker fee (our own fee for arranging your finance), but we are not charging it until January 2027 as part of a promotional offer.
How long does it take?
A straightforward case commonly completes in six to twelve weeks from application. Where a company structure is complex, expect the legal work to take longer.
Why use a broker for a company or SPV purchase
Lenders differ widely on structures. One will not lend to a newly formed SPV, another will, and a third will lend only with a stronger deposit or guarantee. Approaching the wrong lender costs you weeks and can leave a footprint on your credit file. Jaff Sadi spent more than 25 years inside UK high street and commercial banking before founding the firm, so we know how a case needs to be built and presented to get through credit. We compare lenders across a panel of more than 300 UK lenders.
Ready to talk? Speak to a specialist, see our commercial mortgages page, or read How to Get a Commercial Mortgage in the UK.
Common reasons applications are declined
- The property would be hard to let or sell if the lender had to recover it.
- Trading profits or rent do not comfortably cover the payment once existing commitments are counted.
- Accounts are out of date and no management figures are available.
- The deposit cannot be evidenced, or comes from a source the lender will not accept.
- A short remaining lease on an investment property.
- Adverse credit or arrears that surface during underwriting.
Most of these are fixable if they are dealt with before an application rather than during one. A decline is recorded, and a run of them makes each subsequent lender harder to convince, which is why we approach only the lenders likely to say yes.
Commercial mortgage terms explained
- Loan to value (LTV): the loan as a share of the property's value. A lower LTV usually widens lender choice and improves pricing.
- Debt service cover ratio (DSCR): the test lenders use on investment property to check the rent comfortably covers the mortgage payment, with a margin that varies by lender.
- Covenant: how reliably a tenant can be expected to keep paying the rent.
- SPV (special purpose vehicle): a limited company set up to hold a specific property or group of properties.
- Personal guarantee: a promise by a director or owner to repay if the company cannot.
- Agreement in principle: a lender's initial indication that it is willing to lend, based on the information provided, before valuation and legal work.
- Early repayment charge: a charge for repaying or switching a fixed-rate loan during the fixed period.
- Arrangement fee: a fee charged by the lender for setting up the loan, sometimes added to the loan rather than paid up front.
Frequently asked questions
Can I buy commercial property through a limited company?
Yes. Lenders are comfortable with limited company borrowing on commercial property. A personal guarantee from the directors is usually required.
What is an SPV mortgage?
An SPV mortgage is a loan to a limited company set up to hold a specific property. Lenders look at the property, the income and the people behind the company because a new SPV has no trading history.
Do I need a personal guarantee?
Usually, yes. Personal guarantees are common on limited company and SPV borrowing. Take legal advice so you understand what you are signing.
Can a newly formed company get a commercial mortgage?
Often yes, particularly where the property is strong and there is a meaningful deposit. Fewer lenders will consider a newly formed company, so lender choice matters.
Does my credit history matter if the borrower is a company?
Yes. Lenders usually assess the directors and guarantors as well as the company, so their credit history affects which lenders will consider the case and how it is priced.
How long does it take?
A straightforward case commonly takes between six and twelve weeks from application. A complex structure can take longer.
Your property may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it. Figures and timescales on this page are indicative and are confirmed only in a lender's formal offer.