Allica Bank

Mortgage Type

Specialist BTL/Commercial

Property Value (min)

Dependent on loan size -
See below.

Advance (min)

£150,000 Semi Commercial & Commercial
£250,000 Specialist BTL

Advance (max)

£10,000,000 for new to bank customer
£20,000,000 for a client with 12 month track record.

Term (Max)

Owner-occupied: 5 to 25 years Commercial investment: 5-year interest only or 5-year partial amortisation over a 25-year profile Specialist buy-to-let: 5 year interest only

Minimum Age

18 years

Maximum Age

80 at the end of the mortgage term

Family Cash Gift Deposit

Yes from immediate family members

Family Gift of Equity Deposit

Yes from immediate family members

Income (min)

No minimum income however we would expect any applicant to have other income streams outside of the rental income we are using for DSCR to cover their lifestyle.

Restrictions

Specialist BTL:
Product criteria
• Lending against residential properties where we can evidence that the borrower has four or more BTL properties in
their portfolio, small HMOs (up to six beds), large HMOs (over six beds), and MUFBs
• Loans from £250,000 to £10 million
• Loans up to 75% of Vacant Possession value for residential properties, small HMOs and individual marketable MUFBs
• Loans up to 75% investment value / 90% Vacant Possession, value for large HMOs and block value MUFBs
• Experienced landlords only

For further details: see each section of Allica Bank's product guide.

Let to Buy (Turning Residential into Buy to Let)

Remortgage of residential into a BTL accepted

DWP Tenants

No

Student Lets

Yes, considered. Student accommodation properties are classed as commercial investment.

Ex-Local Authority Properties

Can be considered up to 75% LTV (for Specialist BTL range only), subject to the following conditions:

No outstanding pre-emption requirement to repay a proportion of the discount
The property being of standard construction

Minimum years remaining on leasehold property

We require a minimim of 35 years remaining unexpired on any leasehold properties at the end of the proposed loan term

Minimum Ownership

Remortgages within the first 6 months of the original purchase date are not normally acceptable.
Where we are remortgaging within the first 6 months of purchase we will look at both the value and cash in from the client so will not look to advance more than purchase price + any renovation costs within this period.

Permanent rights to reside and remain

Yes, must hold indefinite leave to remain status.

Ex-Patriates

Considered based upon - holding a footprint in the UK may be able to be supported up to a capped LTV of 50%.

New Builds

New Build Houses/Flats considered upon receipt of acceptable warranties building regs sign off.

Credit Score

Yes, upon dip stage.

Rental Calculation

Specialist BTL DSCR –

Gross rent demonstrates 110% over a 25-year amortising term for limited companies, LLPs and individuals

125% over a 25- year term for higher rate tax payers.
*Caveat we would use Gross rent minus 25% cost for HMO assets

 

Commercial & Semi Commercial Investment DSCR –
Variable – 130% using gross rent at margin, plus Base Rate plus 1.5%
Fixed – 130% at pay rate. Interest only loans must evidence affordability over a 25-year amortising term

 

Owner Occupied/trading DSCR –
Variable – 130% using adjusted EBITDA at margin, plus Base Rate plus 1.5%
Fixed – 130% at pay rate using adjusted EBITDA

 

Historic CCJ’s & Defaults

Will consider settled CCJ's and defaults where these are few and not constant.

Rationale for these required at application stage however consistent adverse behaviours would result in the app being declined.

Valuation Fees

Paid direct to lender directly, at the lender valuation fee scales, noting: 3 quotes provided by VAS panel at offer, once chosen valuer instructed VAS will contact the client directly for payment.

Maximum number of applicants

There is no limit within the portal however the recommended criteria to follow is: All directors/majority shareholders are included with 25% shareholding or more. It would be subject to case review if less.

Countries

England and Wales.

Access

Via 3mc as your packager

Regulated BTLs

No

Missed mortgage payments

Will be considered, however will need to be up to date at the point of application and strong rationale and mitigants outlined at application.

Property Type / Commercial

Specialist BTL: HMO (Max 10 Beds)
MUFB (No cap on No. Units)
BTL (minimum of 4 standard BTL properties required to be owned).
Commercial Investment: -Semi commercial & commercial investments units.


Semi-commercial apportionment is defined by percentage of floor space across a semi-commercial property or portfolio (confirmed at valuation). The residential element must not exceed 99%, and must be capable of being let on a separate assured shorthold tenancy. Properties less than 50% residential will be classed as commercial from a product perspective.

Location

Will lend in England, Scotland and Wales

Type of Credit Search conducted at AIP stage

No credit search at AIP/DIP, Full hard credit search conducted at full application.

Portfolio Landlords

Portfolio Landlords Accepted

Background Portfolio Requirements and Criteria

– No maximum LTV for the overall portfolio.
– Portfolio Landlords Accepted – must have 4 or more properties (can be funded elsewhere)
– Minimum of 4 BTL owned for standard BTL mortgages
– No limit on the size of existing portfolio with other lenders

Additional Document Requirements

– 3 Months bank statements showing rental income passing
– Portfolio Schedule
– 2 years accounts/personal tax returns
– Asset Liability Income and expenditure

* Lender will accept client versions so long as covers the lenders minimum requirements