Setting up a ltd for rental property articles of memo

[Nick constable]

Iv set up a limited company for a investment rental property
my financial advisor has told me that banks what to see article of memorandum for the ltd
has anyone had any dealings with this and where did you get this written up by and what detail did they want

[jpkeates]

As part of the "setting up a company" process you'd have needed some boilerplate documents - that should be one of them.

[doobrey]

Memorandum of Association is standard and the default/model is selected during the company formation process unless you want to use your own. Which you evidently didn't, or you would know about it.

Check your company formation document PDF on the gov website.

[loanarranger]

I am sure your Investment Advisor has told you but to check have you ensured that the SIC code is one of the designated codes for the company , check up the classifications if in doubt

[Nick constable]

I should have clarified early I have set it up yet but that’s I plan to do
I have set it up yet I know the SIC code is crucial in settings the company up but apparently mould is copies want to see articles of association

Apparently stop me from potentially spending the Mortgage money on something else

So I’m just going a bit more information before I do it

[loanarranger]

Without wishing to stating the obvious but the company has to be at least registered at Companies House showing the specific SIC code(s), until that is done there is no point in submitting an application and unless the proposed lender doesn’t do a formal hard credit check on you at the Decision inPrincipal you runthe risk of putting your credit score at risk of a slight reduction, ask you broker he should know , if he doesn’t get him to find out immediately.

[jpkeates]

Apparently stop me from potentially spending the Mortgage money on something else

So I’m just going a bit more information before I do it

Are you confident that you have enough information that this is the right approach to take.

It's always sensible to ask questions when you don't know something, but you seem to have decided to set up a company already, which seems a bit cart before the horse.

[loanarranger]

I concur with what JPKeates has said, my standard advice is always have a face to face conversation with either a Chtd or Certified accountant and discuss your planning and understand the pros and cons of using an SPV for the purchase.

[Nick constable]

It’s probably me not wording myself correct
1.does anyone have a rental property business set up as a limited company?
2. When was it set up?
3. Regardless of financial advisor or personal set up did the mortgage company ask for paperwork regarding the limited company?

[loanarranger]

As a broker I can confirm that I have never had any request for supporting documentation, lenders check on Companies House to check the company and the relevant SIC code, once satisfied the focus is directed to the Directors and Shareholders if the latter holds a minimum of 20% of shares, seeking Self Assessment documentation and/ or Paye papers, Personal Bank Statements and if the company already holds performing BtL properties for the last 3 months. Proof of ID and Residence BUT not Memorandum & Articles of Association. Quite straight forward.

[jpkeates]

The lender should be able to download the articles etc from companies house.
They're meant to be public.

[loanarranger]

I believe that the established SIC code is considered to be akin to the official M&A which is why there are a number of lenders who accept Buy to Let applications via companies which have just been registered : as I have said I cannot recall one instance where the lender has sought the M&A and that includes Paragon who are viewed as a great Portfolio lender but inclined to be somewhat pedantic in their underwriting requirements.