Specialist buy-to-let mortgages:
Corporate lets
A corporate let is a property rented to a company rather than directly to the individual who will live there. The company becomes the tenant and provides the accommodation to an employee, director or contractor.
This should not be confused with purchasing a buy-to-let property through a limited company. The landlord may own the property personally or through a company; “corporate let” describes the tenancy arrangement.
Location and occupants
Corporate lets are most common in city centres and areas close to business districts, hospitals, airports, major employers and large construction projects. They may be used to accommodate employees relocating to the UK, professionals completing temporary assignments or contractors working away from home.
Lenders may want to know who will occupy the property, their relationship with the corporate tenant and whether the accommodation will be used exclusively by that company’s employees.
The corporate tenant
The strength and nature of the company can affect lender acceptance. An established employer taking accommodation for its own staff is generally more straightforward than a newly formed property-management company.
The lender may request the company’s details, trading history, accounts and an explanation of why it requires the property. It may also examine whether the company or the individual occupants will be responsible for rent, bills and damage.
Tenancy terms
Because the tenant is a company rather than an individual, the agreement is not a conventional assured residential tenancy. Lenders may impose a maximum tenancy term and require appropriate break clauses so they can obtain vacant possession if necessary.
The agreement should clearly identify the permitted occupants and prohibit unauthorised subletting. Some lenders accept corporate tenancies lasting several years; others require shorter agreements or do not accept company tenants at all.
Corporate lets and rent-to-rent
A genuine corporate let is different from a rent-to-rent arrangement. With a genuine corporate let, the company takes the property to house its own employees or contractors.
Under rent-to-rent, a letting or accommodation company rents the property from the landlord and then sublets it to unrelated occupiers, potentially through Airbnb or other short-stay platforms. Many lenders prohibit this because the landlord has less control over occupation and vacant possession. A lender accepting a corporate let will not necessarily accept rent-to-rent or serviced accommodation.
Rental income and licensing
Mortgage affordability will usually be assessed using the property’s ordinary market rent rather than an enhanced rent offered by the company. See Rental assessments & affordability calculationsfor more detail.
Licensing requirements depend on the actual occupants. If several unrelated employees use the property as their main home and share facilities, it may be an HMO even though their employer pays the rent. Mandatory or additional HMO licensing and planning restrictions may therefore apply.
Landlord experience
Corporate lets are accepted by a reasonable selection of buy-to-let lenders, but the choice is narrower than for a conventional residential tenancy. Some require the landlord to have previous letting experience, particularly where several employees will occupy the property or the tenancy structure is more complex.