Buy-to-let policy
LTVs
- Flats are acceptable on BTL up to 80% LTV
- New build flats are acceptable to 75% LTV
Types of flats
- Studio flats with an internal floor area of at least 30m2 are acceptable
- Multi unit freehold blocks are not accepted
- Converted flats are defined as new build until the later of 2 years after conversion or the date of first occupation
- We treat maisonettes the same as flats
Multi-storey
Flats on the 5th storey or higher must be serviced by a lift. The number of storeys includes all floors and if there are multiple blocks in a development which share an entrance, we will use the storey height of the highest block.
Ex local authority, housing association or MOD flats are accepted but must not be in a building of over 7 storeys. Deck or balcony access is acceptable subject to valuer comment.
Commercial premises
Flats over or adjacent to commercial premises are acceptable subject to valuer assessment including that the commercial premises doesn’t impair demand or enjoyment of the property. The flat’s entrance must not be via the commercial premises and flats immediately above or adjacent to food, drink or dry cleaners will usually be unacceptable.
Tenure
Flats must be leasehold (or in Scotland, heritable or leasehold). Share of freehold properties are acceptable but there must be an acceptable underlying lease upon which we can place our charge.
Freehold flats are only acceptable for a Tyneside flat where there are reciprocating lease/ freehold arrangements, with our security being the lease of the subject flat and the freehold of the other flat.
The minimum property value for all property types is £50,000 up to 75% LTV or £100,000 over 75% LTV.