Fleet makes criteria changes for limited company transfers

From today, Fleet Mortgages 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, as long as it: falls within its standard lending criteria; the existing owners of the property are directors and shareholders of the limited company; solicitors ensure that the lender’s interests are protected appropriately in respect of, but not limited to, any insolvency provisions and solicitors must ensure that stamp duty land tax is paid on the value of the property, as reported by the lender’s valuer.

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, a two-year fixed rate of 80% LTV at 4.89% with a 1.5% fee; and a 65% two-year fixed rate at 4.09% with a £750 fee.

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.”