Compare Criteria

Kensington

Mortgage Type

Buy To Let

Property Value (min)

£75,000 for HMO. £75,000 for each flat if multi unit freehold

Advance (min)

£70,000

Advance (max)

£2,000,000 to 75% LTV
£1,000,000 up to 85% LTV.
£500,000 up to 75% LTV on Property Plus Range

Term (Max)

40 years

Minimum Age

At least one applicant should be a min age of 25. All applicants must be at least 18. At least one of the directors of the Limited Company must be aged 25 or over.

Maximum Age

No maximum age, but must be under the age of 70 at application

Family Cash Gift Deposit

No - Gifted deposits on BTL’s are not acceptable on loans over £500k or for those applicants who currently own a BTL property. For BTL (non-Limited Company): Gifted deposits are acceptable from immediate family members (parents including step- parents, grandparents, other family member such as non-dependent child, brother, sister, uncle or aunt). A Donor Gift Deposit Declaration letter, ID and evidence of funds may be required. Where the donor is not a parent or grandparent, they must be a UK homeowner. For Limited Company applications: Deposits for Limited Company applications must be accrued from Directors personal funds or, in some cases, a Director loan is an acceptable source of deposit as it is not treated as a Gifted deposit. Gifted deposits are only acceptable from a Company Director. Gifted deposits from family members are not acceptable deposits. Where a deposit is received from another Limited Company, this can be acceptable, provided there is at least one common shareholding director. Where the structures are different, the deposit is only acceptable where the funds are made as a Directors loan rather than as a Gift.

Family Gift of Equity Deposit

No Gifted deposits on BTL’s are not acceptable on loans over £500k or for those applicants who currently own a BTL property. For BTL (non-Limited Company): Gifted deposits are acceptable from immediate family members (parents including step- parents, grandparents, other family member such as non-dependent child, brother, sister, uncle or aunt). A Donor Gift Deposit Declaration letter, ID and evidence of funds may be required. Where the donor is not a parent or grandparent, they must be a UK homeowner. For Limited Company applications: Deposits for Limited Company applications must be accrued from Directors personal funds or, in some cases, a Director loan is an acceptable source of deposit as it is not treated as a Gifted deposit. Gifted deposits are only acceptable from a Company Director. Gifted deposits from family members are not acceptable deposits. Where a deposit is received from another Limited Company, this can be acceptable, provided there is at least one common shareholding director. Where the structures are different, the deposit is only acceptable where the funds are made as a Directors loan rather than as a Gift.

Income (min)

No minimum income.
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Minimum income of £25,000 is required for applicants who do not currently own a Buy to Let property.
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Minimum income of £40,000 is required for applicants who do not currently own a Residential property. Unless they have 4 or more Buy To Lets.

Restrictions

The applicant(s) must be an existing landlord for a HMO / MUB,

Note for application submission processes: This product is available through Specialist Distributors only and not widely available. As such upon submission of the DIP first time buyer buy to let cases may fail.

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For Limited Company BTL Lending up to 80% LTV: - Standard properties only

Specific SIC codes only: 68100 - Buying and selling of own real estate; 68209 - Other letting and operating of own or leased real estate; 68320 - Management of real estate on a fee or contract basis; 68201 - Renting and operating of Housing Association real estate.

Maximum 4 directors (at lease one director must hold a minimum shareholding of 20%). Applicant Directors must have a combined shareholding of at least 75% of the company.

All Guarantors will be underwritten. Standard BTL criteria that applies to individual landlords, will also apply to Guarantors on Limited Company BTL.

All individual directors must provide a personal guarantee on a joint and several basis.

They will also be required to receive independent legal advice on the nature and effect of the guarantee being provided.

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There is no overall portfolio limit with other lenders. Maximum portfolio size with Kensington is £2 million.

Where a landlord has 4 or more properties with Kensington, the portfolio will be subject to a weighted average LTV of 75%. Buy to Let properties cannot be rented to family members.

Houses of Multiple Occupation (HMOs)

Maximum loan is £1 million. Minimum valuation is £75,000. Up to 6
bedrooms and 1 kitchen.

The valuer will provide a rental figure which must not include letting of all living rooms in the property.

There must be a communal room for tenants. The property must be capable of being let on a multiple occupancy basis at completion, including but not limited to any applicable licenses or alterations.

Not available for New Build properties. Shared accommodation on bed-sits basis should not be acceptable.

If a property has locks on bedroom doors and basins in the bedrooms, this could be considered as long as the property is standard buy to let, eg. student let, and readily sale-able as a family home.

No first time landlords for HMO/Multi units - however, single units First time landlords/First time buyers are considered as long as one applicant is earning £40,000 or more

Multi Unit Freehold Blocks

Let to Buy (Turning Residential into Buy to Let)

Yes

DWP Tenants

No

Ex-Local Authority Properties

Yes - refer

Minimum years remaining on leasehold property

85 years left on the lease at the beginning of the mortgage application

Minimum Ownership

6 months minimum ownership before remortgage considered. Will lend against OMV no restrictions on maximum advance

Permanent rights to reside and remain

Yes

Ex-Patriates

No

New Builds

New Build Houses & Flats up to 85% LTV - £75,000 minimum value

Credit Score

No

Rental Calculation

HMO / Multi Unit BTL Range – use lender calculator

BTL Range: – use lender calculator

Historic CCJ’s & Defaults

Ignored if registered over 24 months (communications Defaults ignored)
Must be no secured missed payments in the last 24 months.

Valuation Fees

Paid direct to lender at the lender fee scales

Maximum number of applicants

2 applicants on a private BTL or 4 directors on a LTD BTL.

Countries

Will lend in England, Wales and Scotland (Main Land)

Access

Packaged for the Specialist Distributor Ranges

Missed mortgage payments

None in last 24 months

Property Type / Commercial

Up to 6 bed HMO / Up to 6 Multi Units on 1 title both available to 80% LTV
Can consider HMO's let to Students
£75,000 per unit minimum

HMOs
•Up to 6 beds.
•Must have additional living area.

•HMO license is required. Where a license is not currently in place, we will require evidence that this has been applied for prior to completion.

MUBs
•Up to 6 units. No minimum overall property value.

•Minimum valuation per unit of £75,000.
•Minimum area 35 SQM.
•Units must have separate utility services.
•Property must be suitable for letting/resale as a single unit i.e. a ‘family’ let.

Property Plus Range allows for lending on the following (subject to an acceptable valuation with no comments negatively effecting resale):
Pre-fabricated Reinforced Concrete, Poured Concrete, Steel Framed / Steel Clad (pre 2000), 100% Timber Framed (post 1980), Cob Construction, Colt Construction, Concrete Block, Stone and Part Rendered Breeze block with Pebble Dashed Outer Walls.

Location

We will lend in England, Wales and Scotland (Main Land).

Portfolio Landlords

Portfolio Landlords Accepted

Background Portfolio Requirements

– No maximum LTV for the overall portfolio
– A minimum rental stress of 125% at 5.5% – see lender calculator

Portfolio Landlord Criteria

– No maximum properties with Kensington but maximum aggregate borrowing is up to £2m
– No limit on the size of existing portfolio with other lenders

Additional Document Requirements

– Portfolio Schedule – All cases
– Business Plan – Not required
– Asset & Liability Statement – Not required
– Cashflow Statement – Not required
* Lender will accept client versions so long as covers the lenders minimum requirements