Fleet Mortgages has made further criteria changes with a focus on the transfer of property to limited companies.
From today, the lender will consider applications where individuals are transferring their properties to a Special Purpose Vehicle (SPV) limited company. This is treated as if the limited company is purchasing the property and the lender will consider this, subject to the following:
- It falls within its standard lending criteria.
- The existing owners of the property are directors and shareholders of the limited company.
- Solicitors will be obligated to ensure that the lender’s interests are protected appropriately in respect of, but not limited to, any insolvency provisions.
- Solicitors must ensure that stamp duty land tax is paid on the value of the property, as reported by the lender’s valuer.
This type of transfer/purchase typically includes:
- A property owned by a sole individual transferred to a SPV limited company where he/she is the sole director and shareholder.
- A property jointly owned transferred to a SPV limited company where both parties are directors and shareholders.
- A property jointly owned transferred to a SPV limited company where both and other parties are directors and shareholders.
Fleet Mortgages’ entire range of limited company products is available for this type of transfer/purchase including a:
- 75% LTV lifetime tracker at 4.19% with a 1.5% fee.
- Two-year fixed rate – 80% LTV – at 4.89% with a 1.5% fee.
- Two-year fixed rate – 65% LTV – at 4.09% with a £750 fee.
Bob Young (pictured), CEO of Fleet Mortgages, said: “This move to accept applications from borrowers transferring their properties to limited companies is the latest in a series of criteria changes that we have been making during 2016 and there will be further amendments and updates announced in the coming weeks.
“The impending changes to tax relief on mortgage interest payments for individuals, due to be phased in from next year, mean that more and more landlords are looking at corporate vehicles such as limited companies to both house their existing portfolio and to purchase new properties within.
“Our move in this area will hopefully smooth the financing path for those seeking to transfer existing properties into a company structure. We believe that this combined with our highly competitive products, will prove to be a popular amendment to our criteria.”
