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Convert existing Ltd company into SPV Ltd for BTL


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Hello,

this is my first post here as I could not find an answer anywhere on the forum. My wife and I own a small Ltd company that has been virtually dormant for a number of years. Company has £100 capital and reserves on Companies House. We also have a bank account with small amount of money registered for this company. It was created in 2012, there was no trading for a number of years but we have keep this company opened.

 

We would like to buy our first BTL via Ltd company and was wondering if we can "convert" this old Ltd company (change SIC codes and name) to have a SPV Ltd company for BTL purchase and mortgage?

 

Do you think it is possible or should we close old company and open a brand new one with correct SIC to start with?

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You can open a company for as little as £14, or for about £100-£150 with most accountants. I really cannot see any benefit is changing SIC codes for an existing company. Lenders much prefer a brand new company because theres less due diligence to do.

043_logo_final_03.png.0cdf828351f81e6097208048ac2d018d.pngStuart Phillips

Independent, Whole of Market Mortgage Broker

AALTO Mortgages Ltd

Web  www.aaltomortgages.com

Email  sales@aaltomortgages.com

Call  020 7183 1101

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Hi Stuart, thank you for your reply - much appreciated. 

The only reason why I wanted to "convert" old company into a new one was to keep things clean and not bother to close one company as I would be opening one straight after. Closing of the company is of course not complicated but it leaves people with questions when they look you up on Companies House.

Look forward to your comment or anyone else having an opinion on converting. Thank you in advance!

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You can change the SIC code when you do you annual confirmation statement, you could potentially complete this early if it was a while before it was due. I would listen to what Stuart says though as being able to access a wide range of lenders is key when you are starting out so don't jeopardise if you can help it. 

David M Slater ACMA 

Accufy Accounting  - Proactive accounting for property investors 

0208 242 4926    info@accufy.uk

 

 

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