Bounce Back Loans for property businesses – Part 2

Bounce Back Loans for property businesses – Part 2

16:51 PM, 12th May 2020, About A year ago 32

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Our last video on the Bounce Back Loan Scheme and how property businesses are eligible, has given rise to a lot of discussion on Property118 and elsewhere on social media.

In this video Andrew Roberts and I return to give an important update including:

– Which banks have paid out to property businesses

– Clarifying the meaning of ‘trading income’

– Self certification of your businesses turnover

– Whether or not you have to pay the loan back

If you missed Part 1 watch it here at: https://youtu.be/vgw00tf_3nc



Comments

by James Palmer

18:01 PM, 13th May 2020, About A year ago

Unfortunately, on an unrelated business, I applied on the 8th of May with NatWest, was approved, but still yet to see the money!

by Paul Shears

23:50 PM, 13th May 2020, About A year ago

Reply to the comment left by John Heap at 13/05/2020 - 12:22
Wow! I wonder what you did that I did not.

by James Palmer

11:04 AM, 15th May 2020, About A year ago

Reply to the comment left by James Palmer at 13/05/2020 - 18:01
Update: I've just had an update from Natwest, who confirm they have a technical glitch, which they are still trying to identify, which is causing funds not to be released in good time. They cannot give me a time scale for when we will receive the funds, only an apology and that they're trying to sort it!!

by HMO LL

21:57 PM, 15th May 2020, About A year ago

Reply to the comment left by Paul Shears at 12/05/2020 - 22:53
Hi
I have a portfolio of houses, but not in a ltd company. They are all HMO's. If the university doesn't come back and my houses are all empty, and my income stops. Do I qualify for the BBLS?
I bank with HSBC, and they charge me business banking charges. Do I qualify as trading or/ and commercial activity?
Thanks

by Paul Shears

12:15 PM, 19th May 2020, About A year ago

Reply to the comment left by Baker Street Property Meet at 13/05/2020 - 10:36I applied six days ago and it seemed very straight forward. I was informed that they would get back to me in three to five days.
On chasing HSBC up today, the helpdesk informed me that:
1. The lead time has increased from between three and five days to five weeks due to the massive demand!
2. They have no means of tracking my application or even confirming that I have actually made one at all.
3. They did inform me that I could start the application all over again if I wanted to.........
Corporate process following will be the death of us - Oh wait a minute...... Ummmm......... the national response to Covid19 rings a bell somehow..........

by Paul Shears

12:31 PM, 19th May 2020, About A year ago

Reply to the comment left by HMO LL at 15/05/2020 - 21:57
Well it appears that whilst lots of landlords have been informed with good, narrowly defined and accurate arguments that they do not qualify, they have actually applied without breaking any terms of the COMMERCIAL LOAN agreement and have received the money and quickly.

I refer you to Rajan’s Bounce Back Loans for property businesses – Part 2 on this site.

Additionally I refer you to Mark Alexander’s Property 118 TV five minute talk to whether the Inland Revenue views property rental as a commercial business. He very clearly shows that the Inland Revenue takes the view that being a landlord is, apart from anything else, most definitely a commercial business. This was news to many of us, given that, as far as I can tell, we receive uniquely disadvantaged status in the eyes of the Inland Revenue.

by JB

15:54 PM, 19th May 2020, About A year ago

I called HSBC a week ago and called them again today as their 'onboarding team' haven't called me back as promised. Apparently there is a delay of 'weeks' in setting up feeder accounts. They couldn't say if that is a couple of weeks or 12 weeks but admitted they are still working on day 1 applications. The due diligence is taking a long time as they have to do proof of address/business/ID etc..

by James Palmer

15:56 PM, 19th May 2020, About A year ago

Reply to the comment left by James Palmer at 13/05/2020 - 18:01
Finally received the money, today. 11 days after accepting the loan application with Natwest.
One of the quickest right now is Starling Bank and they're paying out on the same day!! It takes about a week to set up the account with them, and a few days for the bank card to arrive, but then you can apply and get it the same day!

by JB

18:25 PM, 19th May 2020, About A year ago

Reply to the comment left by James Palmer at 19/05/2020 - 15:56
Hi James
Don't you have to have the money paid into the business account which you use for your business?

by Paul Shears

23:55 PM, 19th May 2020, About A year ago

Reply to the comment left by JB at 19/05/2020 - 18:25
You need an account but it does not have to be dedicated to business.


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