What are SIC codes?
Limited companies need to be registered at Companies House. When registering a limited company the person who registers the company can choose one or more SIC codes. SIC stands for Standard Industrial Classication. There are hundreds of different codes covering all types of industries and services. This short post will explain which SIC codes are recommended for registered an SPV for a BTL limited company.
Different lenders ask for different SIC codes than each other. However generally as long as you have atleast one of the SIC codes as per below then most mortgage lenders should be OK.
The SIC codes suggested:
- 68100 – BUYING AND SELLING OF OWN REAL ESTATE
- 68209 – OTHER LETTING AND OPERATING OF OWN OR LEASED REAL ESTATE
- 68201 – RENTING AND OPERATING OF HOUSING ASSOCIATION REAL ESTATE
- 68320 – MANAGEMENT OF REAL ESTATE
Generally as long as you have the above SIC codes registered for your SPV then lenders will be fine. See below a list of lenders that offer limited company BTL mortgages via SPV’s along with the codes that each one requires.
- Tmw (The Mortgage Works) – The Mortgage Works accept any/all of the SIC codes 68100, 68201, 68209 and 68320.
- Paragon Bank – These do not publish their criteria but we have done SPV mortgages for clients with any or all the SIC codes we suggested above.
- Fleet Mortgages – 68100, 68201, 68209 and 68320.
- Kent Reliance – These just state the limited company must be non trading thus any of the codes above should be sufficient.
- Precise Mortgages – The company should have one of the following SIC codes (Standard Industrial Classification) set up at incorporation: 68100, 68209, 68320.
As alway it is best to get things right first time so we would recommend that you speak to your accountant and seek their advice.
SPV Limited company mortgaged are not straight forward. Especially if you are a portfolio landlord. We would therefore you suggest that you seek help from a broker who offers advice on this area. You can search or directory to find such experts.
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