Compare Criteria

Kensington

Mortgage Type

Specialist BTL/Commercial

Property Value (min)

£75,000 for HMO. £75,000 per unit MUFB

Advance (min)

£70,000

Advance (max)

£2,000,000 to 75% LTV
£1,000,000 up to 85% LTV

Term (Max)

40 years

Minimum Age

25

Maximum Age

85

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.
*****
Minimum income of £25,000 is required for applicants who do not currently own a Buy to Let property.
*****
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 residential home owner for the past 12 months, unless they can
satisfy one of the following:
1. They have owned 4 or more BTL properties longer than 12 months.
2. Their employer provides tied accommodation such as vicar, caretaker, forces, pub landlord or similar.

For Multi units on 1 title - Experience required is current residential plus 1 BTL for a minimum of 12 months Or no residential plus 4 BTL's for a minimum of 12 months

Can consider HMO's let to Students

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.

********

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

Lending to Limited Companies:

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.

********

There is no overall portfolio limit with other lenders. Maximum portfolio size with Kensington is £2 million or 6 properties, whichever is the lowest.

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

35 years at the end of the mortgage term

Minimum Ownership

12 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

Yes

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)

Valuation Fees

Paid direct to lender at the lender fee scales

Maximum number of applicants

2

Countries

Will lend in England and Wales

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 - must have at least 1 BTL property
£75,000 per unit if MUFB
Can consider HMO's let to Students
Ltd Company lending up to 80% on Standard units

For both HMOs and MUBs
•Overall exposure limited to £2m.
•Not available to FTLs.
•Not available on New Build.
•Limited Company applications accepted.
•Shared accommodation on a bedsit basis is not acceptable.


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.

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 number of properties with Kensington but up to max aggregate borrowing of £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