The following process assumes that the directors of the limited company are the same as the named individuals on the existing mortgage. If this isn't the case, please follow the process for a new buy to let application.
Eligibility
Before proceeding, please ensure your client is eligible to transfer to an SPV.
The Conditions:
No arrears in the last 12 months.
The new limited company or LLP can't contain any directors, shareholders or partners who weren't individual parties to the original loan. A new application must be submitted when more directors have been added since the original mortgage.
A director’s loan or gifted equity letter is required to cover the difference between the loan amount and the value of the property.
Any capital gains or stamp duty tax payable on the transaction must be met by the landlord.
Gather required details and forms
Step 1
Complete the broker authorisation form – and ensure it's signed by both you and your client.
Step 2
Please gather the following information about your client’s application:
Details of the mortgage account(s) that they want to include in their legal transfer request.
Details of the client’s limited company:
Company name
Registered address
Registration number
Date it commenced trading
Director and shareholder details (including the percentage of business owned by each shareholder).
A copy of their existing assured short hold tenancy for the property
Contact details of their instructed solicitors.
Step 3
Gather a completed direct debit form for the limited company and a cheque payable to Kent Reliance to cover our administration fee (this is payable for each account).
Contact our team
Once you've gathered all of the information we require, please email us at lending.team@krbs.com
Completion
Our lending team will let you know when the legal process has been completed and the accounts updated. You will receive a proc fee of 0.30% 30days after the completion has taken place.