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Don’t be limited by limited company lending – latest FAQs

Adrian Moloney | 16.11.2020

When it comes to limited company cases, it’s not just about finding the right product – it’s about finding the right lender too. That’s where we could help.

Limited companies can seem more complex than they need to be, so we want to remove any of the confusion by putting together a list of helpful FAQs.

These focus on the most common case queries we receive on this type of lending, and explore how you could provide solutions for your clients.

Who do you class as applicants on a limited company application?

Only directors of the limited company should be on the application. Please note that we allow up to four directors per application. 

What should I check about the company before submitting my application?

You should check the following: who the director(s) is/are, whether there’s been any striking-off notices, if there’s any outstanding CCJs on the business, and whether the company is a non-trading SPV. 

Does a limited company need to be incorporated prior to application?

Yes it does. The company will be reviewed on Companies House to ensure it has been incorporated prior to the application. 

Who is on your limited company solicitor panel?

Our panel can sometimes change, but you can find the current list of solicitors on our panel on our website.

Why do you have a closed panel for limited company transactions?

Our closed panel ensures that transactions are overseen by experts in that area. When we pick our solicitors, we try to make sure that there’s an even spread across the country to provide nationwide coverage for our brokers.

What’s the difference between sole representation and dual representation?

Dual representation is when the applicant uses the same solicitor as we do from our limited company panel. Sole representation is where the applicant uses their own solicitor as part of the application and we use our own solicitor from our panel.

This option may incur additional charges, as the two solicitors will need to liaise, with the cost being paid for by the applicant. 

Is there a fee structure for solicitors? Does it vary?

Yes - there is a set fee structure for the basic work for limited company cases which can be found on our website, but additional disbursements may vary depending on the solicitor firm.

What’s an SPV and do you accept them for limited company business?

An SPV (special purpose vehicle) is a limited company set up to hold a property (or properties), but no other assets. Lenders like us that offer mortgages to limited companies usually require the properties to be held in an SPV.

What additional documentation do I need to send on a limited company case compared to a standard one?

There’s no additional documentation required for limited company applications. All the required documents can be found in our application checklist, which you can download from our website. 

What information are you looking for within the cash flow document?

The cash flow document sits within the business plan and should be completed for any portfolio landlord cases as defined by the PRA (Prudential Regulation Authority).

The previous tax year and current tax year should be fully completed. We’ll check the annual mortgage payments and annual rental figures against the Buy to Let Hub for consistency.

Tax is paid from the property portfolio section; however, if less tax has been paid, we need to know why. This is to make sure the wider portfolio is performing correctly and is in line with the declared figures.

Have you got a limited company case?

Providing individual case assessments and a common-sense approach to lending, your limited company clients could find the answers they need with Kent Reliance for Intermediaries.

For more information about our specialist support when it comes to this type of lending, see the five reasons to choose us for limited company lending to see how we can help.

For more information on our limited company products and broader criteria, speak with your senior business development manager for a more detailed overview of how we can support you.

Alternatively you can call our broker liaison team on 01634 888283. Discover how we could provide a simple solution to your next complex case.

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