Using SPV to get a Mortgage

F

frankde

Registered User
Messages
78
Hi
I live abroad, have an investment property in Ireland, I checked into getting a second mortgage and was advised that if I use a LTD company and Special Purpose Vehicle (SPV) this might be possible. The loan would be non-recourse, and I was told for the LTD one of the directors has to be based in Ireland. Just wondering has anyone experience of doing this?
 
Could you clarify - are you trying to get a mortgage on a property than you already own (effectively equity release), or trying to get finance for purchasing a completely separate property?

Residential or commercial?
 
Its the later; so trying to get finance for purchasing a completely separate property
Thanks
 
I am resident in Asia actually. My income is non Euro (I believe that is an issue for some banks there)
So I guess this is why SPV using LTD is only option for me, they will just look at the income of the property I intend to purpose and it will be non-recourse
 
Being outside eurozone only excludes PTSB.

Without setting up a company, I understand that AIB & Haven will look at it.
Dilosk possibly will (they definitely lend to companies). Dilosk also do interest only mortgages. If you down company route, Dilosk would probably be first option.

Because they'll only use the rental income, not only does it have to be cashflow positive, but the rent would need to be 120% of the stressed repayments (current rate +2%). You'd also need 30% deposit (i.e. borrowing max 70% of the value).

Going down the company route is messy, expensive, and not tax efficient. Make sure you understand all that entails before pursuing it.
 
You must log in or register to reply here.
Back
Top