Get your ducks in a row with TMW
Dealing with a deposit for a purchase is relatively straight forward where an individual is buying - even if the funds are not coming from the buyer. Generally most of the banks will be ok with The Bank of Mum and Dad handing over the dosh as long as they sign off that it is a gift - some will even be ok with the payment as a soft loan as long as there is no payment of interest. If only it were as simple with companies and specifically BTL purchases by limited companies.
Here is the tale of TMW or The Mortgage Works - Nationwide Building Society's BTL funding arm. They are the White Knight when it comes to BTL limited company borrowing. They have recently re-entered the market previously dominated by the likes of Aldermore, Precise, Shawbrook and Kensington offering some eye popping rates, great service and dual representation on the legal front - the bane of every limited company BTL investor!
All seems great until you read the smallest of small print in relation to the deposit and where it has come from. In essence TMW will only lend where there is a tax transparency in relation to the how the funds have been accrued. This therefore means that a loan from another company will not be accepted, however a repayment of a director’s loan or dividend payment from another Limited Company will be accepted.
Just be careful on this one as the last thing that you want is to find your deal has fallen at the final hurdle because you have not got the deposit transfered over correctly. As ever speak to your accountant and he will be able to expain the implications.