Buy to let

Stamp Duty Holiday

As of 8th July, the government have introduced a tax break on Stamp Duty Land Tax, meaning that until 31st March 2021, UK homebuyers will not have to pay any tax on the first £500,000 of new properties, up from £125,000. If the property is a second home or buy-to-let, you will only need to pay the 3 percent surcharge. For many people, this could reduce the cost of property purchases by thousands, however it is time limited. If you are considering purchasing a new home or an additional property, and would like to know how this could benefit you, please contact us.

Buy To Let Mortgages have increased in popularity over recent years and London and the surrounding areas offer a great rental potential. The main reasons behind this are:

  • The potential for excellent long term capital growth
  • An additional source of income for retirement
  • High demand for rental accommodation in the London and surrounding areas due to an increasing UK population and a demand for young professionals to work in London
  • Having a property as an alternative investment to an existing investment portfolio
  • More lenders having entered the market leading to more competitive, specifically designed, accessible buy to let mortgages

Buy to let mortgages differ to ordinary residential mortgages in 3 main ways:

rental

Lenders will assess your buy to let mortgage based upon the rent you are likely to receive as well as your income. In some cases your income is not considered.

interest rate

Buy to let mortgages tend to have a slightly higher interest rate.

larger deposit

Buy to let mortgage will typically require a minimum deposit of 25% of the property’s value.

When purchasing a buy to let property you will need to decide whether your primary objective is income or capital growth. Your decision may affect the type of property you purchase, the location and whether you opt for a repayment or interest only mortgage.

To find out more, call us on 01932 253939 or email us at info@bigmoreassociates.com © 2018. Bigmore Associates.