The minimum valuation for all lending is £50,000. All flats must have a minimum habitable internal area of 30 sqm (excluding balconies or terraces).
Not available for properties which require renovation prior to letting. This does not include minor redecoration, but the property needs to be in sufficiently good condition that the valuer believes it is immediately habitable and can provide an immediate rental figure per month. For example, where a property requires complete replacement of the bathroom and/or kitchen, this would render it ineligible for a BTL application.
For leasehold property there must be a minimum of 70 years remaining on the lease at completion. Shorter lease terms are only accepted on certain central London estates and subject to specific criteria.
Commonhold property is not accepted.
High rise flats
A high rise block of flats is classed as a block containing more than four storeys, including the ground floor.
We will not consider an application for a mortgage where there are more than 8 storeys within the block. (Ground floor + 7 floors)
Flats above business premises
These can be considered subject to valuers’ comments.
Properties which are above, adjacent or near to commercial premises may be acceptable subject to the following:
- Flats over commercial premises must be in separate ownership to the commercial premises.
- The proximity of the commercial use must not affect the quiet enjoyment of the property
- Consideration should be given to the location of the property
The property must be located in a desirable area with good demand, readily saleable and readily marketable. For example, properties which are adjacent to, or in very close proximity to a public house, night club, petrol station, laundrette, pet shop or hot food takeaway where the method of cooking is likely to cause smell or fumes would not be deemed as suitable security. This is not an exhaustive list Properties located above convenience stores/small supermarkets are acceptable.
Any residential security must have a suitable access, which must not be through a business premises. Where the intended security is a flat situated adjoining or over the premises, the business property cannot be owned by the same person as this would have legal implications in the event of repossession.
Studio flats are unacceptable (excluding central London > 30 sqm). Central London is defined by the following postcodes:
Ex local authority properties
We will not consider a mortgage application for ex-local authority flats where there are more than four storeys in the block. This also applies to maisonettes and Scottish tenements. Balcony / open deck access arrangements within the block are not acceptable.
Ex-local authority flats are not considered unless the majority of the building is owner-occupied.
The property must be of standard construction.
- Bedsits not considered.
- Must not be split into separate units of accommodation (e.g. house converted into two flats).
- Freehold flats.
- Farms/small holdings or other properties where there is land subject to current agricultural use.
- Flats over shops where the owner of the shop and flat would be the same person.
- Any property over which buildings insurance cannot be arranged.
- Grade 1 listed properties.
- Thatched properties.
- Properties with restricted occupancy/covenants, including
- Age Restriction e.g. over 55's
- Time spent at property e.g. 11/12 months
- Restricted to agriculture use
- Non traditional houses where adjoining property hasn't been prepared
- Single Skin construction > 1 Storey
- Large Panel System Flats
- Blocks of flats > 8 storeys
- Studio Flats (Excluding Central London)
- Properties with more than 10 acres of land
Number of bedrooms
The maximum number of bedrooms allowed for a Buy-to-Let property is five. A property must have at least a kitchen and one living room to be suitable for mortgage.(excluding studio flats, see above)
This is subject to the valuer’s assessment of habitable rooms that could be used as bedrooms and will include any reception rooms considered useable for that purpose.