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Fixed & Floating charge through a mortgage debenture in a Ltd company


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I am buying a BTL property through a Ltd company. I have the mortgage offer accepted.


The lender wants a fixed & floating charge on the company and any future properties bought by the company. Will this be a problem when I want to buy a second property through the Ltd company. The solicitor said this is a standard procedure, but also said there may be a problem when I want to buy a second property. 


If anybody has any thoughts on this please could you share it. I want to understand what I am getting into.




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  • 4 months later...
  • 2 years later...

Hi Suhu

Which lender and is your company a SPV?  This was very common three years ago but now most lenders don't need it. When you come to your next property a new lender (B) will be aware of the floating charge from lender A from their search at Companies House and will do one of the following:

Ignore it as they are not bothered or ask lender A for a Letter of non-crystallisation. This is requested by B just before completion and A will charge for it. Most of the time A will do it, but a minority won't. Then you buy through a separate SPV.


Regards Simon

Searchlight Finance Ltd

T:01565 654005


Landlord and specialist property finance advisor only dealing with investors, landlords and developers throughout the UK and beyond.

Buy to Let - Commercial Finance - Bridging Loans - Development Finance - HMO Finance - Refurbishment Loans - Multi Let - Limited Company - Student Lets - Portfolio Finance

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