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About Complex Buy to Let
Complex Buy to Let is the name often given to a property that is let but that the circumstances are not as straight forward as an individual who buys a standard property that is then let to another individual. Complex Buy to Let can include the following scenarios:
HMO Property (House is Multiple Occupation)
This is where a property is not let to one individual or family, but is let to a number of individual tenants. Properties let to students is a typical example of a HMO. Not every lender will consider this type of property as there are additional complications that the lender may experience if the need to take over the property if the borrower defaults on the loan. There are a number of competitive lenders however who will consider these letting types.
One important factor to determine is whether the property requires a HMO licence from the local authority. This will normally be required if the property is 3 stories or more with 5 tenants or more, however it can vary authority to authority. The requirement of a licence can affect the lender choice, so it is important to understand this from the outset.
Connect can give you more detailed advice in this area so Contact Us to speak to an adviser about your specific requirements.
Loans to Limited Companies
In some circumstances, it may be beneficial to buy a property not in your own individual name, but in the name of a limited company. The benefits of this are often related to tax, and your accountant can confirm to you if this is an option you should consider.
Again, not every lender will allow this, however there are a number of lenders who will and offer competitive terms for you to consider.
One important fact to remember is that a limited company is treated as a separate legal entity. This mean if you wish to transfer a property currently held in your personal name into the name of the limited company or vice versa, it will be treated as a sale of the property and as such could trigger sales costs such as Stamp Duty and Capital Gains tax. For that reason, it is worth exploring all the options at the outset to ensure your purchase is arrange in the correct way at the outset and to avoid costly mistakes later on.
Complex property can mean a number of things. It may mean a property that is of mixed use, e.g. a shop with a flat above, or it may mean a freehold house that has been divided into 4 flats that do not have leases.
Working with a specialist adviser like Connect, means that you can quickly narrow down which lenders are happy to consider complex property types and help you find the best deals. Many of the lenders who will consider these property types will only distribute their mortgage offerings through specialist advisers such as ourselves.
If you would like more information on how we can help you with Complex Buy to Let purchases or refinances please contact us using the form below.
If you would like to find out what mortgage options are available to you please call one of our experienced mortgage advisers on 01708 676111, or send us a message using the form below.