Q&As

If a borrower wants to take a loan against a property which he has lived in but intends to demolish the property and build two new properties on the same plot (which he will not be living in), would this fall within the consumer buy to let regime if the borrower does not own any other properties?

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Published on LexisPSL on 19/07/2016

The following Financial Services Q&A provides comprehensive and up to date legal information covering:

  • If a borrower wants to take a loan against a property which he has lived in but intends to demolish the property and build two new properties on the same plot (which he will not be living in), would this fall within the consumer buy to let regime if the borrower does not own any other properties?

If a borrower wants to take a loan against a property which he has lived in but intends to demolish the property and build two new properties on the same plot (which he will not be living in), would this fall within the consumer buy to let regime if the borrower does not own any other properties?

BREXIT: 11pm (GMT) on 31 December 2020 (‘IP completion day’) marked the end of the Brexit transition/implementation period entered into following the UK’s withdrawal from the EU. Following IP completion day, key transitional arrangements come to an end and significant changes begin to take effect across the UK’s legal regime. This document contains guidance on subjects impacted by these changes. Before continuing your research, see: Brexit and financial services: materials on the post-Brexit UK/EU regulatory regime.

Firms carrying a 'consumer buy-to-let (CBTL) business' need to register with the Financial Conduct Authority (FCA) under the Mortgage Credit Directive Order 2015. The regulated activities falling within the remit of a consumer buy-to-let business are as follows:

  1. acting as a creditor under a CBTL mortgage contract

  2. administering a CBTL mortgage contract by carrying on activities such as notifying a borrower of changes in interest rates or payments due under a contract, taking steps to collect or recover payments due from the borrower

  3. acting as a credit

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