How the Lease Works With a Company
The company that owns the property is the party to the lease, not you as an individual. RentPromise acts as the company’s agent, and the government body contracts with the company. Nothing about the arrangement requires you to hold the property personally or to move it out of your corporate structure.
This matters because the ownership stays exactly where it is. The lease sits under your existing structure, the rent is paid to the company, and your accountant treats it as company income in the ordinary way. We work with the entity you already have rather than asking you to change how the property is held.
Who signs what
Your company
Owns the property and grants the lease to the government body.
The government body
Takes the lease, pays the rent and is responsible for repairs and condition.
RentPromise
Acts as the company’s agent, arranges the lease and manages the arrangement.
You, as director
Sign on the company’s behalf under the usual authority, as with any company contract.
If the property is held in an SPV whose only asset is that property, the arrangement is if anything simpler, because there is nothing else in the entity to consider. The lease and the rent are the whole of the SPV’s activity, which is exactly what a single-property SPV is designed for.
Income That Suits Company Accounts
A company holding rental property has to account for a moving picture: rent received, voids, arrears, repair costs, agent fees and the timing of all of it. A government lease replaces that with a single predictable line. The same rent, on the same date, for the term, from a lease with a public body.
For a director preparing accounts, applying for finance, or reporting to other shareholders, predictable income from a public body is materially easier to work with than a variable rent roll. It is not advice on how to run the company, only an observation that the numbers are simpler.
On tax and structure
Why you hold property through a company, and how the income is taxed, are questions for your accountant. RentPromise does not advise on either. What we can say is that the rent is paid to the company as ordinary rental income, on terms set out in writing before you sign, so your adviser has a clear picture to work from.
What We Need from the Company
Leasing through a company involves a little more documentation than leasing personally, but nothing unusual. We verify the company, confirm who has authority to sign, and check the property meets the same requirements as any other. It is the standard due diligence any lease to a public body involves.
If the property is mortgaged, your lender’s consent to the lease is needed, exactly as it would be for a personally held property. Corporate buy-to-let lenders are generally familiar with these arrangements, and we tell you what your lender is likely to require.
FAQ
SPV and Limited Company Questions
Yes. RentPromise contracts directly with your limited company or SPV, and the company grants the lease to the government body. You do not need to hold the property personally or move it out of your corporate structure. The rent is paid to the company as ordinary rental income.
The company signs, through a director or officer with authority to bind it, exactly as with any company contract. RentPromise acts as the company’s agent throughout. You sign on the company’s behalf rather than in a personal capacity, so the obligations sit with the entity.
That is a question for your accountant, not for RentPromise, and we do not advise on tax. What we can say is that the rent is paid to the company as ordinary rental income on terms set out in writing before you sign, giving your adviser a clear picture to work from.
Your lender’s consent to the lease is needed, exactly as for a personally held property. Corporate buy-to-let lenders are generally familiar with these arrangements. We tell you what your lender is likely to require and factor the consent into the timeline before the lease begins.
Yes, and it is one of the most straightforward cases. Where an SPV holds one property, the lease is the entity’s whole purpose, the rent is its income and the government body is its counterparty. There is nothing else in the entity to complicate the arrangement.
Get an offer for your company’s property
Tell us about the property and the company that holds it, and we will come back with a written offer setting out the rent, the term and the fee. No obligation.
Or call us on (612) 123 - 4456 78 to discuss the structure first.
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