Most BTL limited companies are set up as a Special Purpose Vehicle and must apply for a SIC code which indicates they specialise in property. But trading limited companies can be any small business such as doctors, dentists or even brokers who want to use their firm to buy property to let out. However, not many BTL lenders will lend to trading limited companies.
Further to this, the lender has also increased LTVs on large HMOs/MUFBs (up to 12 beds/units) to 75%, up from 70%. There is also now no limit on the number of floors in a property that Landbay will lend on.
Paul Brett, Managing Director, Intermediaries at Landbay, commented: “As one of the few lenders catering for trading limited companies, brokers now have more choice when advising company directors, who do not specialise in property. If small companies have surplus profits, buying property to let can be a tax-efficient investment.
“Our appetite for lending has been boosted by our new £1bn funding source over five years from our new friends and partners, Allica Bank, which we announced last week. We are having a tremendous year across the business and I believe there are even more exciting times ahead for us."
