Can I use a company or SPV to buy the property?


Yes, you can buy an auction property using a limited company or Special Purpose Vehicle (SPV) — and this is a common approach for investors, especially in the buy-to-let or commercial market. However, it comes with additional legal, administrative, and financial requirements that you need to understand from the outset.

What is an SPV?

An SPV is a limited company set up solely to hold property assets. It is typically:

  • Registered with Companies House
  • Often structured as a property investment vehicle (e.g., SIC code 68209)
  • Used for tax efficiency, portfolio separation, or mortgage purposes

Some lenders will only lend to SPVs with a specific trading purpose and no other activity.

What documents will you need?

If you’re buying via a company, we will need to verify:

  • Certificate of Incorporation
  • Articles of Association
  • Latest Confirmation Statement from Companies House
  • Company accounts (if available)
  • Proof of identity and address for all directors and significant shareholders
  • Board resolution authorising the purchase

We are also required to carry out AML checks on the company and its owners under UK money laundering regulations.

What about funding?

  • Most high street lenders will not lend to new SPVs — so you may need a specialist lender or broker.
  • If using bridging finance, ensure your lender is aware you are buying via a company.
  • Company purchases are not eligible for first-time buyer SDLT relief, and may be subject to the 15% SDLT flat rate for high-value residential properties if you do not qualify for an exemption (e.g. buy-to-let businesses).

Key considerations

Once the auction has ended, the buyer named on the memorandum of sale is bound by the contract.

  • Check the auction pack carefully — some contracts forbid buyer substitutions, especially in repossession or probate sales.
  • If you’re planning to buy through a company, decide this in advance and bid in the company’s name.

You cannot switch to a company buyer after the auction unless the contract allows it (known as “nomination” or assignment).

Summary

Buying through a company or SPV can offer flexibility and tax benefits, but it comes with added complexity. You’ll need to provide extra documents, ensure your lender is aligned, and check the auction contract for any restrictions. At Versus Law, we regularly act for corporate buyers and SPVs — and can guide you through the process smoothly and legally.