Buying commercial property through SPV

[TallMark]

Hi, we're considering an investment to buy a small commercial property via a mortgage. It's setup as a small shop / artisan cafe with a couple of rooms above, so would be mixture of commercial and residential usage. It's about 2 hours away from us so we wouldn't be close by to deal with issues etc. Rough price £160k with about 25% deposit.

We're getting some advice on this now, but we're very new to anything commercial. We've been advised that an SPV would be a good way to go, based on myself being higher rate tax payer amongst other reasons.

Before going much further does anyone have much experience of this and guidance for the beginner? Thanks!

[Tresco]

I have done this via an LLP but on significantly more expensive properties involving partners and bespoke funding, in your case I would have thought that the costs involved in setting up an SPV with associated financial reporting would outweigh any benefits.

If the 'we' in your situation is your wife and she is a lower rate tax payer then far simpler to buy it in joint names and split the income.

A basic knowledge of lease law would be useful but as you're not dealing with corporate tenants and their associated advisors it's really not too difficult, no reason why you can't manage it yourself and pay for advice as and when you need it..