UK buy to let investors have in the last few years experienced increasing rental yields and low interest rates with many property investors reaping the benefits.
In addition, there has been some improvement made in the sector with the introduction of letting regulations that help to reduce fraud.
However, when taking out a buy-to-let mortgage, landlords and investors also need to consider the risks that are involved when the market is not running quite so prosperously.
Property investors should always make sure they have sufficient funds available to cover any rental void periods that a property might experience and that they have factored into their finances any building maintenance works that need to be carried out. This is to ensure that mortgage repayments can always be met.
Buy to let in a limited company
If a buy to let property investor has mortgaged a property using an interest only mortgage and is considering selling at the end of the term in order release any capital accumulation and to repay the loan it is important to consider the implications of potential falling house prices which bring with it the possibility of negative equity, and capital gains tax. Ltd company buy to let mortgages may save the person a substantial amount of money in the long run. Scott & Goose can advise if this would benefit the client.
Income Tax on Buy to Let Profits
When calculating forecasted profits, investors should always remember that any rental income gained after the mortgage payments and any specific allowable expenses, is likely to be taxable at the prevailing rate, LTD company buy to let may be a solution.
Where income tax is concerned, we would always recommend that you seek the advice of a property tax specialist.
Specialist Buy to Let Property Investment & Finance Solutions
As a leading independent property investment specialists Scott & Goose offer expert advice and support to clients across our specialist areas of expertise helping them to achieve their investment objectives.
If you are a new property investor or existing landlord looking for buy to let property investments, please contact us today to discuss how we can help you.
Products and services for landlords and investors
Frequently Asked Questions
Yes and no, Ltd company buy to let mortgages usually have a higher interest rate than a buy to let in an individual’s name, but the ongoing savings can be huge when considering taxation, we would be happy to discuss the benefits of both.
Yes, we have a lot of experience with dealing with portfolio clients and lenders, it is a more complex Mortgage but with our experience, we can make it hassle-free for you.
Need more information?
The best way we can help you is to have a quick conversation to understand your situation and recommend appropriate products. Contact us today for a no-obligation discussion.