Buy-to-Let

UK individuals, limited companies and limited liability partnerships only.

Company Standard Industrial Classification (SIC) code must relate to property management, investment or development.

New Special Purpose Vehicles (SPVs) are accepted.

Both of our pricing Tiers are available to individual and corporate borrowers.

Tier 1 rates are available where all applicants meet the Tier 1 criteria. Tier 2 rates apply where one or more of the applicants does not meet the Tier 1 criteria. HMO and MUFB applicants must meet the Tier 1 criteria.

Based upon the lower of the purchase price or market value. If the security property was purchased within the last 6 months, we will normally lend on the original purchase price.

Our loans can be used to purchase or remortgage.

If remortgaging, a valid explanation is required if the property has been owned for less than 6 months, unless this is a transition from another of our products. Remortgaging from existing Bridging Finance will be considered.

We permit additional capital raising but it must be fully declared and explained.

On all purchase cases the source of deposit must be disclosed and must have originated from within the UK. We will request evidence of the deposit.

If a limited company is purchasing the property from individual director(s) - and the full share capital of the limited company is in exactly the same name as the property - then the existing equity is acceptable as the deposit in the form of a director’s loan account.

Personal applications

Gifted deposits are acceptable excluding First Time Landlords (FTL). A FTL will require a minimum 10% contribution from personal funds.

Gifted deposits can only be accepted from an immediate relative, full details of whom must be disclosed.

• The identification of the person(s) gifting the deposit must be satisfactorily established
• Appropriate deed of gift indemnity insurance will be required
• Only on-shore funds may be used
• Inter-family sales: A 10% personal contribution is required

Limited Companies

Acceptable without a customer contribution when the following are in place and verified:

• Directors loan
• Intercompany loans
• Business savings
• Inter-family sales: A 10% personal contribution is required

Buy-to-Let offers remain valid for 90 days from the date of the formal offer. If an offer needs to be reissued after expiry this may alter the amount of the loan and be subject to additional underwriting.

An electronic verification check will be done through Equifax. If this check fails, you will need to supply a certified utility bill, bank statement or tax demand dated within the last 3 months. We can accept a drivers licence if it isn’t being used as ID verification.

The underwriter can apply discretion to the minimum time in the current job, taking into account employment history, probation status and proposed exit.

Applicants/ shareholders/ directors should be registered for UK tax and sources of income should be within the UK.

Where a 36-month mortgage history is not available on the credit searches we will require mortgage statements to verify satisfactory conduct. We can check these manually or through Open Banking, if permission is given by the applicant.

Applicants are required to demonstrate they have sufficient income to cover their full personal and Buy-to-Let expenditure, including any potential property void periods. This can be done manually or through Open Banking, if permission is given by the applicant. Your underwriter will advise you if this is necessary. Acceptable income evidence should be one (or a combination) of the following:

• latest 3 months’ payslip
• latest SA302 (HMRC) tax assessment and tax overview
• latest Signed Accounts

First time Landlords, defined as being landlords with less than 12 months experience, are required to demonstrate a minimum income of £30,000.

If we are unable to verify the applicant’s bank account we will require a bank statement or bank ‘Welcome Letter’ dated in the last three months confirming the account details.

We will ask the borrower to verify their identity via the Jumio platform. They will be required to take and upload a selfie and a photo of their identification. If this check fails, you will need to follow the instructions from our Identity Documents list.

All borrowers must disclose details of their marginal tax rate to enable the correct ICR to be applied.

Experienced Landlord - Standard Residential:

At least one party to the loan should have held at least 2 or more BTL properties, one held for at least 12 months.

First-time landlords loans up to a maximum of 75% LTV subject to the following criteria:

• No missed mortgage payments
• Must own residential property for at least 6 months
• Minimum income £30000
• No adverse credit
• Only single residential properties and Small HMOs (no student lets)- No Large HMOs or MUFB

Only UK Limited Companies and UK Limited Liability Partnerships (LLP) are permitted. SIC code must relate to property management, investment or development. New SPVs are accepted, however no trading businesses. Purchase of company share capital to acquire property is not accepted.

Full personal guarantees are required from all directors and shareholders who own at least 25% of the equity in the company.

Where there is a shareholder with less than 25% shareholding - or a director who can be defined as having a significant controlling role in the business - we will require personal guarantees and these officers to be added to the application.

Directors must demonstrate they have sufficient income to cover their full personal and Buy-to-Let expenditure. This can include income from employment, selfemployment, pensions, investments, and rental or other property income.

Director/shareholder minimum age: 21

Director/shareholder maximum age: 95 (at end of term)

Maximum number of 4 directors/shareholders/members.

LLP members must be designated.

Where multiple applications are made by the same corporate borrower each loan must be in the exact same company name. We reserve the right to require a debenture and floating charge at the underwriter’s discretion based upon our total aggregated exposure.

Where individual director(s) have interests and make applications the exposure to LendInvest must be carefully considered and will be an underwriters decision as to whether a debenture/floating charge is required.

Any applicants via a UK limited company or UK LLP will be assessed on the basis of the strength of the director(s) as if they were applying for lending facilities on a personal basis. A condition of any offer to these entities will be personal guarantors or third-party security providers seeking independent legal advice. In certain cases, we may accept a waiver letter in respect of the independent legal advice from a borrower who is also providing a personal guarantee

Any transfer of ownership or equity will be treated as a purchase (NOT remortgage) of the new freehold/leasehold title. This includes cases involving title splits.

In all cases we will append an Offer Condition to seek confirmation that all borrowing parties have obtained their own taxation advice from a qualified accountant.

Individual to corporate

The existing equity is acceptable as the deposit in the form of a Director’s Loan Account. A transfer at undervalue (including nil value) may be considered, subject to underwriting, only where the current ownership of the property is in exactly the same name as the legal ownership of the company purchasing the asset. For incorporation application(s), where the property is held in personal name(s) and mirrors (exactly) with the same ownership of the SPV, we accept the issuing of shares.

Separate legal representation will be required. Applicants will be liable to pay their own costs. Does not qualify for any 'free' legals incentive that may be offered from time to time.

Corporate to corporate (including a LLP/SPV)

The existing equity is acceptable as the deposit in the form of a Director’s Loan Account. Any transfer of ownership from company to company (including LLP or SPV) must be a purchase at full market value. Issuing new company shares to purchase a property is NOT accepted. Separate legal representation will be required. Applicants will be liable to pay their own costs.

Does not qualify for any 'free' legals incentive that may be offered from time to time.

Trusts

LendInvest will not lend to trusts or overseas-registered companies.

Title splits

1. Separate legal representation
2. Underwriter agreement necessary
3. Normally treated as a purchase
4. Property must be suitable legally and physically
5. Charges on part security are not acceptable
6. Transfers are at full market value

• Houses
• Flats
• Maisonettes
• Apartments
• New-build flats, New-build houses, New-Build HMOs and New-Build MUFB (max LTV 75%) ²
• HMOs up to 15 units ¹
• Multi-Unit Freehold Block (MUFB) up to 10 units (max 75% LTV)
• Basement flats (including new builds) (only acceptable in London and Edinburgh) ²
• Flats in blocks up to 5 storeys (must have a lift if 4 storeys or higher)
• Flats up to 10 storeys are accepted in Greater London subject to valuer’s commentary (must have a lift if over 4 storeys)
• Ex-local authority flats considered if in a privately owned block ²
• HMO flats (up to 6 beds)
• HMOs let to students (up to 6 rooms) ⁴
• Studio flats (within Greater London, min 30sqm)
• Flats with balcony or deck access ²
• Properties adjacent to or opposite a public house/social club/places of worship ²
• Holiday Lets ³
• MUFB combined with HMO ²

1. ¹ See sector experience section
2. ² Subject to underwriting and valuers comments, the LTV may be restricted to 70% if the case proceeds
3. ³ Subject to criteria
4. ⁴ Student Let HMOs in Scotland (only acceptable near main universities which would include: University of Stirling, University of Dundee, Heriot-Watt University, University of Strathclyde, University of Aberdeen, University of St Andrews,University of Glasgow and University of Edinburgh)

• Properties above, or adjacent to fast food outlets, amusements, restaurants, clubs
• Shared ownership
• Studio flats (outside Greater London)
• Freehold flats and freehold maisonettes
• Tyneside/crisscross leasehold
• Flats over 18 metres with Cladding unless newly built where work commenced after 1/1/19
• Ex-MOD flats outside Greater London
• Properties in over 1 acre of land
• Properties in a designated fracking area where the valuer does not confirm as suitable security
• Property with inherent structural defects e.g. Properties built using high alumina cement, mundic block or other defective materials
• Properties with agricultural usage or other planning restrictions
• Grade 1 listed properties
• Mobile homes and houseboats
• Commercial property
• Properties in isolated rural locations
• Properties where the borrower is effectively both the freeholder and leaseholder unless we have a charge over both
• Properties built or significantly converted in the last 10 years without a nationally recognised warranty
• Properties located next door/adjacent to the applicant’s residential property unless we have a portfolio landlord
• Properties that contain a flying freehold greater than 15% of the total property area
• Single dwelling with a substantially flat roof
• MUFB leasehold flats
• Back to Back / Sub Sales
• Any form of non-standard construction (we can consider the following Concrete Construction, Wimpey no Fines, Laing Easiform and Timber framed houses – subject to being built after 1970 with brick, reconstituted stone or rendered block work)

• Freehold houses only. Leasehold houses can be considered on a case-by-case basis.
• Leasehold flats and maisonettes must have at least 65 years remaining on the lease at the end of the term.
• Commonhold is not accepted.
• Freehold flats/maisonettes (except former feudal flats) are acceptable in Scotland

Single, assured shorthold tenancy (AST) up to 1 year or a corporate let for a longer period at the underwriter’s discretion. All tenancies must be to occupiers who will be in residence for the full period of the AST or corporate let.

If, during the term of the mortgage, the ground rent charge is (or will) exceed £1,000 p.a. in London or £250 p.a. outside of London, we will be unable to proceed with the application.

Any property we are considering should be lettable in its current condition.Properties that are likely to have poor demand from tenants due to their current condition, location or other factors, including poor maintenance or management of common areas, will not normally be acceptable. Properties that are likely to have average demand from tenants due to their current condition, location or other factors, including poor maintenance or management of common areas, we may restrict LTV to 70%.

We reserve the right to accept or decline any individual property.

The property must comply with the current Energy Performance Certificate Regulation, and have a minimum rating of E, unless there is an applicable exemption.

£150,000 London (excl. rest of UK)

£75,000 UK (excl. London)

Block Concentration Level: LendInvest cannot finance more than 75% or 5 units in a single block of flats. Any variation to this limit should be treated as a Material Exception. These limits relate to LendInvest’s exposure and not to any individual borrower.

In England & Wales a HMO is defined as a property rented out by at least 3 people who are not from 1 ‘household’ (e.g. a family) but share facilities such as the bathroom and kitchen.

You must have a licence if you’re renting out a large HMO in England or Wales. Your property is defined as a large HMO if all of the following apply:

• it is rented to 5 or more people who form more than 1 household
• some or all tenants share toilet, bathroom or kitchen facilities
• at least 1 tenant pays rent (or their employer pays it for them)

Experienced landlords who have 2 or more BTLs (one to be held for at least 12 months). For Small HMOs, Student Lets will be considered.

MUFB cases, a minimum of 12 months experience managing a similar size property or if the MUFB experience is less than 12 months, customer must be currently managing the equivalent same number of other BTLs in the background for over a year. For large HMOs, at least one party to the loan should have a minimum of 12 months experience managing a similar size HMO property plus at least 2 years BTL experience.

For HMOs of up to 6 bedrooms, the valuation is based upon the vacant possession comparable value only and not the investment yield. Retypes are not accepted.

Large HMOs are typically valued upon rental yield.

HMOs in an Article 4 area can be valued on a rental yield basis where there have been changes made to the layout to accommodate multiple tenants. Approval to use rental yield as the valuation basis has to be detailed within the lending rationale.

£250,000 in London (excl. rest of the UK).

£100,000 for rest of UK (excl. London).

Properties being refinanced that are operating as a HMO must have all appropriate licences in place at the time of application, if applicable.

The property must meet all local authority licensing requirements prior to funds release. The borrower must obtain a HMO license, when required, to operate within 90 days of completion.

In an area where a clear demand exists. Maximum number of letting rooms in any one HMO property cannot exceed 15. Max units for MUFB is 10. Valuation fees by arrangement.

• ICR based on single AST rental income
• Valued as a single dwelling house
• There can be no title restrictions
• Min income of £30k
• Must meet our acceptable property type criteria
• Customer must own 2 other BTLs (with one having been held for more than 12 months)
• Must meet Tier 1 criteria
• No HMOs/MUFBs can be considered
• Max 5 bedroom house
• Standard ICR rates
• Max LTV 75%
• Max Loan amount £750k