Ltd company financing

[tuskkev]

evening all,

I currently have a property that is held within a limited company which is worth around £65K. Is it possible to raise some capital against it and if so what sort of rates would I be looking at? looking to raise £30K.

Thanks in advance

Kev

[Sarnie]

It's possible but the criteria is fairly stringent and lenders are limited to say the least.

- The company needs to have been created solely for you purchasing and holding of rental properties.
- ALL properties within the company need to be mortgage to the one lender
- All directors may be required to give personal guarantees

If you need any help with this feel free to PM/email me

[LooneyTunes]

Sarnie said:

It's possible but the criteria is fairly stringent and lenders are limited to say the least.

- The company needs to have been created solely for you purchasing and holding of rental properties.
- ALL properties within the company need to be mortgage to the one lender
- All directors may be required to give personal guarantees

If you need any help with this feel free to PM/email me

With respect to your first point, would a sub in a bigger group be acceptable?

And is there a minimum portfolio size/value that lenders are looking at these days?

I have some funds trapped in a ltd structure that I've been thinking of doing some btl (or commercial) with.

[tuskkev]

Sarnie

none of what you mention would be an issue.

I will PM you later.

Thanks

Kev

[jonny70]

Sarnie said:

It's possible but the criteria is fairly stringent and lenders are limited to say the least.

- The company needs to have been created solely for you purchasing and holding of rental properties.
- ALL properties within the company need to be mortgage to the one lender
- All directors may be required to give personal guarantees

If you need any help with this feel free to PM/email me

does a BTL mortgage in a limited company have to have a personal guarantees ? (even with a 25/30/35% deposit)

[Sarnie]

LooneyTunes said:

With respect to your first point, would a sub in a bigger group be acceptable?

And is there a minimum portfolio size/value that lenders are looking at these days?

I have some funds trapped in a ltd structure that I've been thinking of doing some btl (or commercial) with.

A sub company within a larger group shouldn't be a problem, dependant on the specifics involved.

No minimum portfolio size but normal minimum property values apply at circa £65k-£75k.

[Sarnie]

tuskkev said:

Sarnie

none of what you mention would be an issue.

I will PM you later.

Thanks

Kev

No problem, no PM received though

[Sarnie]

jonny70 said:

does a BTL mortgage in a limited company have to have a personal guarantees ? (even with a 25/30/35% deposit)

If you want to take advantage of residential rates and fees, rather than the higher commercial rates and fees, yes.

[pacoryan]

OP is this a residential property?

If Commercial the story is a bit different.

[pacoryan]

LooneyTunes said:

Sarnie said:

It's possible but the criteria is fairly stringent and lenders are limited to say the least.

- The company needs to have been created solely for you purchasing and holding of rental properties.
- ALL properties within the company need to be mortgage to the one lender
- All directors may be required to give personal guarantees

If you need any help with this feel free to PM/email me

With respect to your first point, would a sub in a bigger group be acceptable?

And is there a minimum portfolio size/value that lenders are looking at these days?

I have some funds trapped in a ltd structure that I've been thinking of doing some btl (or commercial) with.

If going Commercial think about making Pension contributions and buying the properties that way, or is it essential to keep the assets in the Ltd Co?

[tuskkev]

pacoryan said:

OP is this a residential property?

If Commercial the story is a bit different.

Just to clarify it's residential.

sarnie

not PM'd yet, been hectic., will do shortly.

[jonny70]

Sarnie said:

If you want to take advantage of residential rates and fees,

can i ask ball park whats the rate and fees on a BTL with 25 % deposit / 30 % deposit is atm

thanks

[Sarnie]

That's a fairly broad question but you'd be looking at between 4.50% to 5.50% depending on how much you wanted or didn't want to pay in arrangement fees which, which would range from zero up to 3% of the advance.