Frequently asked questions

• What is your Limited Company Buy to let Mortgage Criteria?

  The information below is intended to give you an idea of eligibility for our Limited Company Buy-to-Let mortgages. Meeting the below criteria is not a guarantee of acceptance, applications will also be subject to additional underwriting criteria, credit checks and assessment of a suitable property.

   

  Limited Company Buy to Lets	We will only lend to SPV Limited Companies based in the UK with one of the following SIC codes: 68100 - buying and selling of own real estate 68209 - management of real estate on a fee or contract basis 68320 - other letting and operating of own or leased real estate  We will consider newly formed SPVs. Trading Limited Companies, Partnerships or Limited Liability Partnerships will not be permitted. Layered companies are not accepted.
  Minimum / Maximum Term	5 years – 40 years
  Minimum Loan	£25,000
  Maximum Loan	£1,000,000
  Repayment Basis	Repayment Interest Only
  Minimum Property Value	£50,000
  Loan to Value	Maximum 75% - subject to product availability.
  Maximum number of properties	Up to 3 properties
  Rental Calculation	The rental income must cover at least 125% of the monthly interest payment on an interest only basis calculated at the rate of 7.50%.
  Maximum Directors	Limited Company should not have more than 4 directors and they must own 100% between them. Personal guarantees for the full loan amount will be required for all directors of the limited company; a floating charge will not be required. Directors must meet the standard BTL age requirements: Minimum age: 21 Maximum age: 90 (at term).
  Minimum Income	£20,000 minimum income is required (single or joint)

• What type of companies will you lend to?

  We will only lend to SPV Limited Companies based in the UK with one of the following SIC codes:

  68100 - buying and selling of own real estate

  68209 - management of real estate on a fee or contract basis

  68320 - other letting and operating of own or leased real estate 

  We will consider newly formed SPVs.

• What is a Special Purpose Vehicle (SPV)?

  An SPV Limited Company is set up solely for the purpose of buying, letting and selling residential BTL property.  If the limited Company trades in additional industries, this is not acceptable.

• What are Standard Industrial Classification (SIC) Codes?

  The SIC code of a company confirms the nature of trading.  Leek Building Society accept any/all of the SIC codes 68100, 68209, 68320.

• Will Leek Building Society lend to layered companies?

  Layered companies are not accepted. A layered company is where another company has a shareholding in the proposed company, or where the proposed company has a shareholding in another company.

• Does the mortgage have to be first legal charge?

  Yes, we will require first legal charge over the security.

• Can my client get a Limited Company BTL mortgage and rent it out as a Holiday Let?

  No.  We do not offer Limited Company BTL mortgages for Holiday Lets.