"My firm is changing from LLP to Ltd - can I get a mortgage?"

I came across a recent query from a client who was wanting to get a mortgage but the firm in which he was a partner was changing legal entity to a Ltd company. Partners to become directors, equity holders to become shareholders, same staff, same premises. They will close the doors on a Friday as an partnership and over the weekend will morph into Ltd company - saving tax and of course limiting the directors' liablity. Mortgage should be a piece of cake?

The feedback that I got from alot of lenders left me bewildered. "No!" alot of them said as they were of the view that the Ltd company was in essence a new entity and they would require at least one year's account. Absolutely ludicrous, I thought. We are talking about a firm that has been trading for years, has a sound financial background, will not be altering their managment structure and above all will be trading with the same client base that they have always done. All they are doing is adding three little letters on to the end of their name

No wonder the public scratch their heads about mortgages.

PS. Hats off to the good people at the Leeds Building Society who said that they would look at this notwithstanding it fell outside criteria. Other lenders are available but are unlikely to lend!