A lease doc loan does not require full evidence of your income. The lender instead relies on the strength of the rent income from the property used to secure your loan.
The lease must be at arm’s length, that is, not to your own company.
The lease income minus outgoings must be sufficient to cover the interest on your loan.
Regarding the loan term, it varies with the lenders. Most lenders review the loan term in line with the renewal of the lease. However, others may have a set 5, 15, or 25-year term. In addition, interest only periods may be considered depending upon the interest cover you have and the term of your lease.
Yes, owner-occupied properties are not considered for lease doc loans. That means a lease to your own business doesn’t count as income evidence! A lease to a family member’s business or to a related business entity also does not count.
You can use a commercial lease doc loan on a residential property if your loan in NCCP unregulated: