B2L HMO in Ltd, using a commercial mortgage only???

BDDazza

Hi guys


I have formed a limited company with the intention of buying a property in the company's name for an HMO business. I have approached NatWest and their advisers are giving me advice which is contradictory to my independent research.

NatWest are saying that my limited company can't buy a property using a buy to let mortgage. They have advised I take out a commercial mortgage instead.

I've read many website where people mention buying properties under limited companies. My Independent research says commercial mortgages are for office blocks, warehouses, offices etc.

Is there anybody who can clear up my confusion

Thanks in advance,

BDDazza

Pixie5740

Did NatWest say it was because your company will be making the purchase or was it because the type of property is a HMO?

00ec25

so you asked Nat West what its rules are for lending to a Ltd Co and it told you what ITS RULES are

what relevance is your "independent" research in that context. Do you intend to sue Nat West for breaching what you think its rules ought to be so they suit you?

BDDazza

00ec25 wrote: »

so you asked Nat West what its rules are for lending to a Ltd Co and it told you what ITS RULES are

what relevance is your "independent" research in that context. Do you intend to sue Nat West for breaching what you think its rules ought to be so they suit you?

I am not asking NatWest to breach the rules, I am querying whether the adviser 'advice' was correct or a misinformation.

NatWest own website says commercial mortgage is for offices, apartment complexes and warehouses, this is why I am questioning the adviser's recommendation.

Pixie5740 wrote: »

Did NatWest say it was because your company will be making the purchase or was it because the type of property is a HMO?

The adviser did not know what a HMO was. He said all properties bought using a LTD has to go through their commercial mortgage lending.

davidmcn

A few seconds on their website and I see their BTL mortgage page says quite clearly "Please note, we cannot offer mortgage where the household will have or has multiple occupants, or multiple tenancies."

So the HMO aspect certainly rules it out, whether or not the limited company does.

I expect their commercial mortgage is simply for all other types of business premises - renting out an HMO being a business.

BDDazza

davidmcn wrote: »

A few seconds on their website and I see their BTL mortgage page says quite clearly "Please note, we cannot offer mortgage where the household will have or has multiple occupants, or multiple tenancies."

So the HMO aspect certainly rules it out, whether or not the limited company does.

I expect their commercial mortgage is simply for all other types of business premises - renting out an HMO being a business.

Thanks, commercial mortgages have much stringent criteria.

I think I'm going to have to look into another bank.

shirlgirl2004

Why don't you use a broker that is used to working with BTL? The chances are a good broker will save you more than the fee paid for advice.

BDDazza

shirlgirl2004 wrote: »

Why don't you use a broker that is used to working with BTL? The chances are a good broker will save you more than the fee paid for advice.

Thanks. I found out that Lloyds a offer residential mortgage for HMOs bought with a Limited Company. I will arrange an appointment while I research a decent broker.