Brokers warned not to disregard new BTL business

Brokers warned not to disregard new BTL business

Brokers have been warned that they may miss out on new business when the market enters a hiatus period as lenders and brokers concentrate on completing existing loans before the Stamp Duty deadline.

From Foundation Home Loans' analysis of market activity, a period of assessment or reassessment is taking place as existing landlords, as well as those who have been considering buy to let investment, decide on their next move.

According to Simon Bayley, FHL's Commercial Director, the market is currently very busy ensuring existing business completes on time, however as any new funding on property purchased from this point will attract the new stamp duty rates, there could be a danger that new business might be ignored.


Simon Bayley said: "There is a real danger that focus for brokers has switched from business acquisition to business completion during this period. Of course, completing existing loans to beat the stamp duty deadline is important, however I would urge advisers not to lose sight of generating new business. Landlords, both experienced and new, have had time to assess and calculate the effect of taxation changes and SDLT and, from what I can see, are ready to buy where they can see capital appreciation and/or sustainable rental yield.

At FHL, demand for limited company BTL products is increasing, as more landlords understand there is a way to protect profitability within an SPV. So, there is new business out there. However, instead of waiting for the phone to ring, intermediaries will need to be proactive in their new business activity to ensure that they do not have a fallow month."

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brandonlee10
brandonlee10 24 Jul 2017

The financial ramifications of the triggering of Article 50, the starting gun for Britain's departure from the EU, are far from clear. Buyers will be most cautious in London, given that buying a home in...

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IrisJ.
IrisJ. 19 Jul 2017

Great advice, but may I also add that when buying an already built home, make sure you do all of the proper inspections. Most importantly pest inspection because people tend to get surprised when they

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IrisJ.
IrisJ. 17 Jul 2017

The third point is, in my opinion, the most important one. People have become too inconsiderate and careless when it comes to rented properties. If a landlord wants to protect their property, regular visits...

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cornishalan
cornishalan 10 Jul 2017

Added to the cost of purchasing these village properties are the above average maintenance costs. Particularly where the property is a listed building or requires specialist building skills such as thatching...

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Jo Mullett
Jo Mullett 07 Jul 2017

Here in Swansea, known as the Japanese knotweed capital of the UK, it never fails to amazes me that people have no idea of the potential problems this invasive non-native plant can cause when buying or...

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NathanG
NathanG 05 Jul 2017

McDonalds, for example, have been purchasing their real estate on prime locations for years. If something happens to the company they'll have invaluable assets that will be able to save them. We might

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Jonah
Jonah 04 Jul 2017

Graham: surprised to see you cite the "extra tax liability" as capping out at ?560. It doesn't - the extra tax is exponential, as it is levied on the income (i.e the inflating level of rental income you...

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Dianne Griffen
Dianne Griffen 29 Jun 2017

Be very wary of anyone bringing you deals that they have ?found? and want to ?sell on to you? or ?joint venture? with you on ? you need a proper legal contract for this, involve a RICs surveyor to confirm...

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jason hadzikostas
jason hadzikostas 28 Jun 2017

The most important thing is a budget. Students have to manage their spendings in food, house maintenance, books and many other things. According to me, student Studios are the perfect option for them as...

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SecomTech
SecomTech 22 Jun 2017

AT Last...This was discussed years ago and there was a move towards landlords registering their bad tenants on a database..(can't remember where) It seems a logical step though our leaders will probably...

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Bertrand
Bertrand 02 Jun 2017

How about the Welsh Govt introducing a scheme to protect landlords against "rogue" tenants who are then taken to court for criminal damage to the properties they trash. Pretty unlikely I suspect and politically...

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AmberMorris
AmberMorris 25 May 2017

"Please don't pick a novelty tune-playing doorbell. They're not 'fun'. They're stupid." Laughed a lot to this. It's actually true, though.

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