mortgages for limited companys

patricia44

please can someone advise where my limited company can obtain a mortgage to buy a house to renovate. we already have 2 properties with no mortgage that are being let, and want to use these as equity for a loan. would welcome some advice as having great difficulty in finding someone to lend us the necessary funds.

Thrugelmir

Speak to the commercial department of a bank regarding development finance.

kingstreet

The Mortgage Works criteria for lending to Limited Companies;-

Limited companies
We will only lend to Limited Companies whose sole purpose is the purchase and letting of residential property and who must be registered in the UK. This includes England, Wales, Scotland, and Northern Ireland.
Max 70% LTV
Applications with more than 5 applicants are not accepted
We do not lend to overseas companies
We will not accept applications from property developers or builders
Personal guarantees are required in all cases
No bearer shares and beneficial owners must be disclosed and identifiable
Each loan must be on a single account basis and self supporting for LTV and rentals
Layered companies are not permitted
Applications for HMO properties not accepted
Limited Company Light Refurbishment applications not accepted
We will instruct our solicitors to oversee the transaction, the fee of £299 (+ VAT) will be payable by the customer - this fee applies per property.
First time landlords purchasing accepted up to 65% LTV

http://www.themortgageworks.co.uk/content/lendingcriteria/#btl

Looks like you'll have to remortgage the finished BTLs to fund the purchase and development of the renovation projects.

silvercar

NatWest used to be obliging, don't know if they still are.

Thrugelmir

kingstreet wrote: »

Looks like you'll have to remortgage the finished BTLs to fund the purchase and development of the renovation projects.

With the list of restrictions, TMW are unlikely to release remortgage monies without some form of undertaking I would have thought. As to easy to circumnavigate.

property.advert

You'll need to steer off the High Street. A friend of mine set up a facility with Coutts of all people. Essentially a line of credit with first charges placed over existing mortgaged property. This may well be similar to what you require.

handytips

Private banks are not a good option, they will take personal guarantees and can call the loan in at anytime. Which is happening on a regular basis at the moment.
Why dont you do the BTL on a personal basis, why do you have to buy via a Limited Company ? Many lenders do not like this anymore and TMW will assess each case individually. Best of luck but i would remo them/buy them on a personal basis.

Thrugelmir

handytips wrote: »

Why dont you do the BTL on a personal basis, why do you have to buy via a Limited Company ? Many lenders do not like this anymore and TMW will assess each case individually. Best of luck but i would remo them/buy them on a personal basis.

Existing properties are in Limited Company. So OP has little choice but to continue with this. As to transfer assets out of same would result in a tax charge.