"Our move in this area will hopefully smooth the financing path for those seeking to transfer existing properties into a company structure."
From today, Fleet Mortgages will consider applications where individuals are transferring their properties to a SPV limited company, providing the purchase falls within its standard lending criteria.
Other conditions include the existing owners of the property being directors and shareholders of the limited company.
Solicitors will also be obligated to ensure that the lender’s interests are protected appropriately in respect of, but not limited to, any insolvency provisions, and that stamp duty land tax is paid on the value of the property.
Fleet Mortgages’ entire range of limited company products is now available for this type of transfer/purchase.
Bob Young, Chief Executive Officer of Fleet Mortgages, commented:
“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.”
