Buy to Let Fact Find Supplement

THIS IS  THE PROPOSED FINAL DOCUMENT FOLLOWING DISCUSSION  

PLEASE READ THE BLOG TITLE BUY TO LET RISKS, PUBLISHED PREVIOUSLY , BEFORE LOOKING AT THIS

Supplementary Questions For BTL Properties

The following questions are for consideration when taking applications for BTL mortgages. These are intended to minimise the risk of the firm being used for fraudulent or misleading applications by clients.

NOTE: In addition to getting the client to sign this document, one thought is to send a copy on to the lender with the application form. The lender doesn't ask for such a document and may indeed not use it but, if you send it, you have advised the lender of the extent of your research and have demonstrated a certain level of due diligence. Of course there is a risk associated with this in that the lender might claim that it placed reasonable reliance upon the information.. And of course they may then uncover issues that might imply duplicity... and so the matter goes on. This thought, only occured to me as I wrote the introductory Blog to the subject, and it requires a lot more careful consideration before anyone even thinks about implementing it!!

PROPOSED QUESTIONS....

1.	Neither I/We nor any of my/our immediate family will be living in the property whilst it is in mortgage to the lender.
2.	The proposed mortgage is to be arranged on the basis that the property will be let out to tenants on a commercial basis with an approximate monthly rental income of £.......................
3.	IF A PURCHASE I/We have no prior ownership, interest or charge on the property that I  am/ we are proposing for mortgage
4.	IF A REMORTGAGE I/We  own the property and have an existing mortgage on the property which I/we am looking to replace.
5.	The purchase price of £................................ is the exact amount that I am/ we are paying  the vendor for the property and I/we have no arrangements  in place to pay a different sum to the vendor or, if appropriate, the builder nor any discounts or other incentives.
6.	FOR SINGLE OCCUPANCY BTL The property is to be let to a single tenant or family group of a size commensurate with the property’s limitations of occupancy.
7.	FOR HMOs The property is to be let to multiple tenants or family or other groups (for example students or professional persons), not exceeding ..................... and that this number is commensurate with the property’s limitations of occupancy.
8.	I/We do not have now and have never had any relationship or any other association with the vendor other than a business relationship as a purchaser. (This includes  for example, such matters as directorships of companies or any relationship as a business partner as well as vendor/purchaser/supplier relationships in respect of any goods or services either now or in the past)

SIGNED............................................................................................DATE.........................

TO BE SIGNED BY ALL APPLICANTS

IF ANY OF THESE STATEMENTS RAISE QUESTIONS THEN DETAILS MUST BE OBTAINED FROM THE CLIENT AND SET OUT BELOW AND THOSE DETAILS MUST BE SIGNED FOR AND DATED BY THEM AT THE END OF THE STATEMENT. These details should include names and addresses for possible contact and/or verification. It is suggested that one issue is recorded on a page and signed for and that where there are multiple issues, there are multiple copies of this second page, all of which must be signed and dated by all the applicants.

The client’s by signing below confirm that the statements given by them  above are accurate and true to the best of their knowledge and belief and that by signing at the foot of this page, they authorise the firm to contact the other party in order to verify these matters.

SIGNED...........................................................................................................

DATED.........................................