buy-to-let

The Chancellor recently ‘stamped’ his mark with the proposed introduction of a higher rate of Stamp Duty for BTL landlords and second home owners from 1st April next year. A futher headache for Landlords? Is there a silver lining in all of this? Well there indeed could be for those with 15 or more properties. Forming a limited company could be that answer.

Prior to this latest announcement, following previous announcements in the summer budget, a number of our clients had been talking to us about buying within a company and some are even considering selling their personally owned properties into a company so that they can start to alleviate the possible income tax bill. Those investors enjoying a well-paid ‘day job’, plus a decent number of BTL’s within their portfolio, will be prime candidates for the movement towards using company structures.
Normally purchasers are required to provide a deposit but some innovative lenders are happy to consider 75-80% corporate BTL lending and facilitate the securing of the deposit within the Directors Loan Account (DLA). So could this be an option for you?

It’s certainly an opportune time to chat with your mortgage broker/financial advisor and ask questions to get the answers to make informed decisions. Consider the best ways to maintain, grow and protect your portfolio before it’s literally ‘stamped’ out!