Monday, May 23rd, 2016
It is now more crucial than ever to seek out the right professional buy to let mortgage advice. Following some recent changes to many of the regulations and legal framework that governs Buy to Let property, (to include the mortgage application itself and also the tax treatment of any associated rental income and mortgage payments).
First time landlords or even those managing an existing Buy to Let portfolio should now seek out the expert assistance of both a specialist mortgage broker and, if required, an accountant with the appropriate property expertise who will help guide them through the new rules and regulations.
In fact, careful and detailed consideration should be given to all of the factors that can now impact the purchase of a Buy to Let property. For example, following changes to the way in which residential investment property is taxed, an investor may wish to decide whether to buy and own the property in question personally or alternatively set up a special purpose vehicle (or SPV) such as a limited company which would then in turn own the asset and from which its shareholders could then draw an income. Due to the complex nature of the potential for double taxation, the limited company route should not be undertaken lightly.
One important consideration when making decisions about the way an investment is structured for tax purposes may be whether an individual is employed or self-employed. In addition, a review of their overall personal taxation position is likely to be required to determine how any future income generated from the property would impact upon that.
By working closely with a pool of suitably qualified specialist accountants, a Buy to Let mortgage broker such as Caboodle is able to provide the right mortgage advice to ensure that a proposed investment application is properly completed and represents best advice.
Previously, obtaining a mortgage on an SPV owned property was not straightforward. Many of the products offered were actually inferior to the more standard ones being offered when an individual was buying in their own name, but just as the Buy to Let market has changed the mortgage products offered by many lenders have had to evolve too. Now, providing their lending criteria are met, many lenders are able to offer greatly improved products on much more competitive terms. Of course, it all depends on how each business case is presented and supported in all the circumstances and that is where your advisors can help.
If you would like to know more about our approach to Buy to Let Mortgages, please call Caboodle Finance of Sutton Coldfield, Birmingham today on 0121 308 9114 or just click HERE to contact us by email and we will be delighted to assist you with buy to let mortgage advice.
Caboodle Financial Services Ltd
Mere Green House
46-48 Mere Green Road
West Midlands B75 5BT
Telephone: 0121 308 9114