How SPV share purchases are helping landlords scale efficiently – Forrester

Rather than buying the property outright, this approach involves acquiring the company that owns it. When structured correctly – and where the purchase is at full market value – it can offer a potential saving on stamp duty land tax (SDLT), as the transaction is treated as a share transfer rather than a property purchase. For professional landlords acquiring high-value or multi-unit assets, the savings can be significant.

This is not a loophole or workaround – the SPV must be clean, with no historical liabilities, and the transaction must be properly documented and valued. However, when these conditions are met and specialist advice is taken, the share purchase route can provide a commercial advantage in portfolio acquisition.

Some specialist lenders are comfortable treating such transactions as remortgages of the SPV, rather than new purchases. This opens up access to competitive buy-to-let (BTL) funding, including fixed rates and leverage up to 75% loan to value (LTV). Crucially, these lenders understand the legal and financial due diligence involved in share purchases and can offer pragmatic underwriting for experienced landlords.

A recent case handled by Brightstar Financial illustrates this in action. A client was acquiring 100% of the shares in a limited company that owned a licensed six-bedroom house in multiple occupancy (HMO) in a strong rental area. The company had no trading history beyond the property and no liabilities. A BTL mortgage was secured at 75% LTV on a five-year fixed rate of 5.74%, with the lender fee added to the loan. Because the deal was structured as a share purchase, no SDLT was due – a significant saving that allowed the client to reinvest in further acquisitions.

As with all tax-sensitive strategies, appropriate legal and tax advice is essential. Share purchase structures won’t be right for every scenario, but for landlords acquiring rental properties already held in a company, they can offer a flexible, tax-efficient way to scale.

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As lenders become more familiar with this structure – and brokers more aware of its advantages – SPV share purchases are moving from niche to mainstream. With the right advice and lender support, they are becoming a valuable tool in the portfolio landlord’s toolkit.