Buy to let
Buy to let properties have become a much used investment tool since the credit crunch. With banks reducing savings interest rates and companies making changes to pensions, there are very few options that provide the investment opportunities as property.
Historically, property has outperformed most other forms of investment, and that doesn’t look like it is going to change anytime soon.
Buy To Let properties can be used for cash flow OR long term investment and capital growth so whether you are looking to purchase your first BTL, expand your existing portfolio or simply want to refinance on to a better interest rate we have a multitude of options to consider.
There are two ways in which you can purchase a buy to let property;
Personal buy to let is simply having a buy to let property in your personal name. In light of recent tax changes this is being reviewed by tax advisers, and something you may want to look into to make sure you are maximising your tax efficiencies.
Due to the fact the tax changes have been implemented since April 2017, the way lenders assess the ‘rental stressing’ has changed from 125% to 145% meaning that you may not be able to raise as much out of the property as you used to be able to. The way people are looking into this is;
Limited company buy to let. This is a way of purchasing or refinancing your property under a company name, typically through what is called and SPV (special purpose vehicle). This enables you to own a property through a ltd company that specifically relates to real estate / property and allows you to look at the tax in different and potentially more efficient way.
The other benefit to looking into a limited company buy to let is that the ‘rental stress’ can in some cases be looked into on 125% basis and stressed at various interest rates including 5 year fixed rates to give the option of raising the most money possible out of the property. We offer advice on this this so get in touch to discuss this further.
*Personal Buy to Let rates from 1.55% per year and Limited Company Buy to Let rates from 2.59% per year correct as of 31.10.2019 based on a 25% deposit (75% LTV), and are subject to change based on personal circumstances (e.g. credit score, length of product term, deposit amount). Product and broker fees may apply