Our clients' situation
They wanted to purchase a buy-to-let property through a limited company. The twist? The property was already owned by one of them in their personal name, and he planned to sell it to his limited company to release funds for his onward residential purchase.
To add another layer of complexity, the client’s brother was joining the limited company as a first-time buyer. Neither client was an owner-occupier at the time of application because the property was already rented out.
This scenario presented two main challenges:
• Limited company purchase from self
Some lenders are cautious about transactions where the seller and buyer are connected.
• Owner-occupier requirement
Many lenders require at least one applicant to be an owner-occupier at the point of application, which wasn’t the case here.
Alexander Hall's solution
We identified a lender with flexible criteria that perfectly suited this case:
• They accepted applications where the property was moving from personal ownership to a limited company.
• They had no minimum income requirement, which was crucial for our clients.
• They were comfortable with the applicants not being owner-occupiers at submission, providing that one would become an owner-occupier post-completion.
By leveraging our expertise and lender relationships, we navigated the complexities and secured a solution that met our clients’ goals.
Add to that, the application was processed quickly, with an offer at a competitive rate issued within a week.
To talk to one of our advisers about your mortgage needs, call us on 08000 38 37 36 or book an appointment today.
This is for information only. Products and rates vary depending on your circumstances, lender criteria and products available at the time.
There may be tax implications when arranging this type of transaction, this depends on your personal circumstances and may change. We recommend that you take independent tax advice before making these decisions.
