Mortgage and Insurance for Corporate Lets: Getting the Basics Right

A corporate lease can offer fixed income and fewer day-to-day headaches than letting to individual tenants. But it is not a like-for-like swap with a standard assured periodic tenancy. Two areas catch landlords out: mortgage permission and insurance cover.

Your mortgage must permit corporate lets

Most standard buy-to-let mortgages are written for residential AST or APT lettings. A significant share of UK buy-to-let products explicitly exclude corporate lets. Letting to a company without your lender's consent is a breach of mortgage terms — even if the rent is higher and the tenant more reliable.

Before agreeing a corporate lease:

• Check your mortgage offer and terms for restrictions on company tenancies
• Request written consent from your lender if required
• If consent is not available, speak to a broker about corporate let buy-to-let products before you commit

Lenders typically stress-test rental income at 125–145% of the mortgage payment. Corporate rents are often 10–20% above equivalent residential rates, which can help meet coverage requirements — but only on a product that allows the tenancy type in the first place.

Insurance is not automatic

Standard residential landlord insurance policies usually assume individual tenants on ASTs or APTs. A commercial lease with a company tenant may require commercial landlord cover or a specialist policy that explicitly includes corporate lets.

Confirm with your broker or insurer that your policy covers:

• A company as named tenant
• Your intended property use (including social housing or supported living where applicable)
• Buildings, contents, and liability for the full lease term

We can work with your timeline

When you register with WeLeaseHouses, we review property details as part of our process. If you are still arranging lender consent or switching insurance, tell us — we can factor that into the proposal timeline. Getting the legal and financial groundwork right protects both you and your corporate tenant.

General information only, not mortgage or insurance advice. Speak to a qualified adviser before changing your tenancy or finance arrangements.