Buy to Let mortgages differ considerably to that of a residential mortgage, and there are specialist lenders and lending criteria to consider. Whether you want to invest in your first Buy to Let property or if you're a portfolio investor, we can provide you with valuable advice to make sure you get the most out of your business decision.
A personal Buy to Let is when a property is purchased by an individual to rent out as a secondary income. Due to changes in the amount of tax the owner pays, this has become less popular in recent years but is a good option if you want to purchase a property for family or children to reside in.
If you want to get into property investment but are put off by the tax implications, then another option is to set up a limited company created for this sole purpose. The company becomes the owner of the Buy to Let property and therefore different tax rules apply. This type of ownership is growing fast, especially for those wishing to build a portfolio of properties.You just need to make sure you seek honest financial advice to ensure you are working in a tax compliant way.
If you are struggling to sell your home or you simply want to keep it as a long-term investment when you move to a new home, there is the option of letting it out instead. This is known as a Let to Buy; you retain your existing home, switch the mortgage to a Buy to Let package and then simultaneously buy your new home with a separate mortgage. It requires there to be a certain level of equity in the current property and would be based on your financial circumstances, but it is certainly worth investigating.
Another reason for a Buy to Let mortgage is for the purchase of a holiday let, to be rented out on a short-term basis throughout the year. This has similarities to a personal Buy to Let but the main difference is how the mortgage is calculated.
With the recent changes to Buy to Let mortgages, expert advice has never been more needed. Book an appointment today to talk through your options.