Covid-19 Bounce Back loans for property businesses

by Ranjan Bhattacharya

16:06 PM, 5th May 2020
About 4 weeks ago

Covid-19 Bounce Back loans for property businesses

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Covid-19 Bounce Back loans for property businesses

The Bounce Back Loan Scheme (BBLS) applies to buy to let landlords! In this video Andrew Roberts and I take a look at the eligibility criteria and how you can apply for up to £50,000 as an interest free loan for your buy to let property rental business.

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Covid-19 – Corona Virus Bounce Back Loan Scheme (BBLS) For Property businesses buy-to-let Landlords



Comments

Paul Shears

23:52 PM, 5th May 2020
About 4 weeks ago

I just tried to apply for a Bounce Back Loan through my Santander account and I hit two brick walls straight away.
1. They want my Santander Business Account details. I have never had a business account with anyone. I just have accounts that I use for business.
2. They want my business name. They do not appear to be asking for my sole trader name.
3. They want my company registration number. But I am a sole trader with no company number.
To say the least, this is not a good start for what is supposed to be a very straight forward procedure.
Does anyone have any ideas?

Paul Shears

8:02 AM, 6th May 2020
About 4 weeks ago

I note that since yesterday, even the Santander Autobot "Service", which does not work for Bounceback loans, does not work at all this morning. So officially at the moment, there is no way of contacting this bank as the answer machine requests that customers use the autobot service and avoid using all other numbers...........

Phil Ashford

8:08 AM, 6th May 2020
About 4 weeks ago

Ranjan and Andrew cling onto the definition of “commercial activity”. Which is included in Point 1 of the several Eligibility Criteria. You hang on this one point and use it to conclude that you pass every other Eligibility Criteria as a consequence, or imply that commercial activity can be used in each of the distinct Eligibility Criteria - but that isn’t what is written.

You neglect to mention how you navigate past the 50% of income must come from Trading Activity? Andrew accepts in the video that Trading Activity is well understood. It stands to reason then, that you and Andrew both well understand 50% of income from Trading Activity - yet you state you see no reason why landlords cannot apply?

Your video is silent on this point. You say, “there’s nothing in the small print” - yet there clearly is.

This application is a Self Certification. An applicant declared that they meet the Eligibility Criteria, not declare that they meet the questions asked of by the bank on the application form...

Andrew states early on in the video that BBL loans have no 50% of income must be from Trading Activity test like with CBILs. Yet, this condition is in there - We have a factual representation problem in this video therefore. Did you just miss it when recording this video in haste? Do you need to refine your view again?

Paul Shears

8:17 AM, 6th May 2020
About 4 weeks ago

I just worked through both long options on the loan answer machine at Santander which offers human interaction. Once you have tolerated all of the lengthy irrelevant messages, it cuts you off. I will try again later but the only possible way of reaching a human being is to deliberately choose the wrong options on the answer machine.

Beaver

9:48 AM, 6th May 2020
About 4 weeks ago

Reply to the comment left by Paul Shears at 05/05/2020 - 23:52
So...to qualify for the buy to let bounceback scheme is it the case that only the incorporated businesses, the big guys, are able to apply?

The majority of landlords have a small portfolio, just a couple of properties. For many of those those people, particularly those who are retired, it could easily be 50% of their income.

So is this a case of there is a bounceback loan, but only the rich people need apply for it? Only the very rich can borrow?

Paul Shears

9:50 AM, 6th May 2020
About 4 weeks ago

Another hour today on this with Santander. Three helpdesk staff. Two more calls. The application is at last complete.
I await a decision.
I was warned that they may ask for more information.
Fingers crossed as almost all of my income is from property rental. 🙂

Paul Shears

9:53 AM, 6th May 2020
About 4 weeks ago

Reply to the comment left by Beaver at 06/05/2020 - 09:48From my discussion with Santander, I do not think that the staff that I spoke to actually know. However it certainly appears to me that I am in exactly the same position as you and we do qualify.
Feel free to ask for more details if required.
I am a sole trader with no limited company. It's not just for rich people. 🙂

Caring Landlord

10:04 AM, 6th May 2020
About 4 weeks ago

I don’t understand!

A buy to let business or a property investment company (whether owned in own name or within a corporate wrapper) is surely an investment business?

How do you get a buy to let business to have 50% of its income from trading?

Maybe if you own a property portfolio and have a separate management company that charges you fees for management services this would qualify for bounce back loan as a trading business.

But this is likely to be relatively small in most cases.

I cannot see how a business which the majority of income is from rents can be classified as a business with 50% of its turnover from “trading”.

Is the suggestion just to lie? Or choose banks where the online application questions are not drafted properly?

Or am I missing something?

Paul Shears

10:10 AM, 6th May 2020
About 4 weeks ago

Reply to the comment left by Caring Landlord at 06/05/2020 - 10:04
Well maybe it's me not understanding the situation. Doesn't renting out a property for rent count as a "trade"?
You are offering something to someone for the purpose of making a profit.

Caring Landlord

10:15 AM, 6th May 2020
About 4 weeks ago

Renting is an investment business. It’s not a trading business.

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