Kent Reliance and InterBay Commercial, the specialist mortgage lenders who are both part of OneSavings Bank, have announced a new policy for landlords who wish to transfer their existing buy to let property from their individual name into a company or limited liability partnership structure. A key feature of the new policy is that it will accept directors’ loans or gifted equity, subject to an insolvency indemnity policy.
Following the announcement in last year’s summer Budget of a phased change to tax relief on mortgage interest for landlords from 2017 onwards, incorporation of a limited company has been seen by many as the preferred means of holding investment property. The latest edition of the Kent Reliance Buy to Let Britain report (published after the Chancellor’s Autumn Statement in November), suggested limited company lending across the UK could exceed 56,000 in 2016, up from 30,000 in 2014.
In response to this demand, the new policy will allow both new and existing customers to transfer a property from their sole name into a Limited Company or limited liability partnership, subject to current policy requirements being satisfied.
Existing borrowers will have access to a reduced fee retention product range and in recognition of the role of our intermediary partners in the process, procuration fees will be paid in accordance with the table below:
|
|
New Customers |
Existing Customers |
|
Kent Reliance |
Standard new business proc fees |
0.25% |
|
InterBay Commercial |
Standard new business proc fees |
*0.50% |
*Subject to 0.50% Product fee
Borrowers are urged to seek professional advice from a suitably qualified professional prior to entering into any transaction.
Please refer to www.krfi.co.uk or www.interbay.co.uk for further information on this new policy.
Adrian Moloney, Sales Director for OneSavings Bank, comments: “The Chancellor’s changes introduced a clear need for products designed specifically for property investors who were moving their investments into a limited company, and needed their mortgage finance to reflect this. Our new criteria provide a solution for professional investors who wish to manage their portfolios through a limited company structure. We’ve also made sure that the process is as quick and efficient as possible for brokers and their clients.”