SDKA raises semi-commercial LTV
Specialist buy-to-let lender Fleet Mortgages has revised its lending criteria for limited company applicants, expanding its policy to accommodate more complex corporate and Special Purpose Vehicle (SPV) structures.
The lender stated the changes, which take effect today, aim to reflect the evolving nature of landlord borrowing frameworks and respond directly to broker feedback. The updated approach allows Fleet to accept more varied company structures, including layered ownership models.
“These structures offer tax advantages, better succession planning, and greater control over portfolio management,” said Steve Cox (pictured left), chief commercial officer at Fleet Mortgages. “But as these structures become more sophisticated, it’s vital lenders move with the market.”
The policy change follows recent rate adjustments by the lender. Fleet reduced pricing on several five-year fixed rate limited company mortgages by five to 10 basis points across 55%, 65% and 75% loan-to-value (LTV) bands. The lender also launched a £1,000 cashback incentive on 55% LTV products for limited companies.
Meanwhile, bridging lender SDKA has increased its maximum LTV on semi-commercial properties to 75%, responding to heightened demand from developers aiming to convert such assets into full residential use.
The shift follows changes to Stamp Duty Land Tax (SDLT) rules introduced on April 1, which have made semi-commercial property acquisitions more tax-efficient. For instance, a £200,000 residential purchase would incur £11,500 in SDLT, while the same value for a semi-commercial property would attract only £1,000.
Developers are increasingly leveraging permitted development rights to convert the commercial portion of these assets into residential units, enhancing income potential.
“The numbers are compelling to developers as SDLT savings can go a long way to, if not cover all, the associated costs of converting a semi-commercial asset,” said Scot Tsang (pictured right), head of operations and in-house legal at SDKA.
With the new LTV ceiling, SDKA said it aims to offer borrowers increased flexibility and access to higher loan amounts. The lender provides short-term finance for residential, semi-commercial, and commercial properties across England, Scotland and Wales, with loans up to £10 million and rates starting at 0.85% per month.
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