Limited Company BTL rockets following stamp duty hike

Limited Company BTL rockets following stamp duty hike

Foundation Home Loans is seeing increasing interest in Limited Company BTL purchase products from analysis of Decisions in Principle over the past few months.

According to the data in October and November only 3% of its DIPs were on Limited Company products. In December that number had jumped to 28% and in January the percentage of new DIPS had reached 62%.

According to Commercial Director, Simon Bayley, the interest was not unexpected.

He said:

“Once the surprise at the Chancellor’s move on tax relief had been absorbed, it was only a matter of time before brokers and their clients were looking at the opportunity presented by this type of product. This is an area of the market that us and other lenders need to lead the way in providing robust alternatives to support the BTL community.

“I think we will see this become a significant tool for landlords depending on their circumstances. Purchases will be the main focus, but it remains to be seen about the take up of this product for those wishing to place existing portfolios into an SPV. Enterprising advisers will already be talking to existing landlord clients with portfolios to look at the implications of moving to a Limited Company structure. For landlords with more complex portfolios, those conversations will undoubtedly need to include other professional advisers such as accountants and solicitors.”

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Kelvin Lloyd
Kelvin Lloyd 09 Oct 2017

IT is up, to the Planners. If they will only give permission for bungalows on certain (suitable) sites, they will be built.

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maggie swift
maggie swift 09 Oct 2017

It's just the beginning of the shocking rise.

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maggie swift
maggie swift 09 Oct 2017

I have recently read that the bungalows can provide social housing for elderly residents in London.

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zoe glover
zoe glover 05 Oct 2017

Update! Worst company I have ever dealt with. Undervalued a Cambridge property by over 100k, wont take on any evidence of valuation including a RICS valuation done 3 years ago for the very same value...

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Paul Edwards
Paul Edwards 27 Sep 2017

Its nonsense articles such as this that make it harder to get clients to realise just how difficult the market is out there. When you see Rightmove and there are more 'price reduced' then 'new' most days...

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Tom Allen
Tom Allen 20 Sep 2017

Absolutely agree with you!

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RyanGeo 18 Sep 2017

A sharp correction would be a less dramatic expression to use. That is already underway in certain sectors in Reading where I practice as Chartered Surveyor

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sean benton
sean benton 01 Sep 2017

Identity theft is a thread for any profession. So,people should stay alarmed. I once take help from a letting agent and came to know that letting agents are taking every precaution to prevent fraudulent...

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Mark N.
Mark N. 30 Aug 2017

We have seen a surge in instructions over August and that should continue into September too.

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Chris 30 Aug 2017

Unfortunately, all the legislation bears its force on Landlords and ignores, naively, the effect of Rogue Tenants on the ability of landlords to keep houses in repair and offer properties for rent at reasonable...

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Christian Donovan
Christian Donovan 18 Aug 2017

The write-down on house values, combined with the fall in the GBP saddled the fund?s property portfolio with a 1.4% loss in the second quarter. The shocking amount of $240 million.

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Samantha Goodman
Samantha Goodman 11 Aug 2017

Interesting point of view.

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