Get Your COMPANY STRUCTURE Right BEFORE You Apply: Why Changing It Later Can DERAIL Your MORTGAGE

Changing a company structure might seem like an administrative decision, but doing it during a mortgage application can create serious problems with the lender and potentially put the whole property transaction at risk. In Episode 130, Mark Watts explains why property investors need to have the intended company structure in place before starting a mortgage application and what can happen when shareholders, directors, holding companies or subsidiaries are changed during or after the process. In this episode, we discuss: ·       Why the company structure at application should match the structure intended at completion. ·       How introducing a holding company can change the way a lender assesses an application even when the ultimate beneficial owners remain the same. ·       Why adding subsidiaries, shareholders or new individuals can create further underwriting requirements. ·       How changing directors midway through an application can cause delays because the lender has not assessed the new director. ·       Why changing shareholdings during the process can affect an application even when the same people remain involved. ·       How a late company structure change could mean restarting the mortgage application and potentially paying for a new valuation and application fees. ·       Why some lenders may no longer be able to lend once a more complex company structure is introduced. ·       How making structural changes after completion can also create problems with the existing lender and potentially lead to early repayment charges. ·       Why investors should think about their longer-term portfolio plans and discuss intended structural changes with their broker before applying. If you invest through a limited company or expect your ownership structure to evolve as your portfolio grows, this episode is worth listening to before you submit your next mortgage application. If you're planning a limited company property purchase, refinance or portfolio restructure, get in touch with Prime Property Finance to discuss the mortgage implications before making changes to your company structure. Contact us now if you would like to know more Home - Prime Property Finance Disclaimer This podcast is produced by Prime Property Finance, an independent mortgage brokerage. The views expressed are for general information purposes only and do not constitute personal or financial advice. Listeners should avoid taking action based solely on the content discussed and are encouraged to seek advice tailored to their individual circumstances. The information shared reflects the personal opinions of the hosts and any guest speakers and does not necessarily represent the views of Prime Property Finance as a company. Prime Property Finance is not responsible for any losses or actions taken as a result of this podcast. Privacy Policy - Prime Property Finance