Alterntive investments Flashcards
What is a SPV?
An SPV, or Special Purpose Vehicle, a legal entity that is created for a limited or defined purpose. Within property investment they are formed for purchasing and holding residential buy to lets or for property development.
SPV’s are mostly set up as a private limited company but it could also be a Limited Liability Partnership (LLP), Public Limited Company (Plc) or other business types.
Ownership is via shares in the company
Directors will operate the Company and make the decisions
Properties can be purchased and held within the Ltd Co
Mortgages are taken out in the name of the Ltd Co
There’s no limit to how many properties an SPV can own
Rental income belongs to the SPV
All business expenses will go through the company bank account
