The most recent figures indicate that up to a fifth of landlords are now buying property through limited companies, and experts at the industry event predicted the proportion of homes to rent in the UK owned by portfolio landlords would grow even further into 2018.
This shift in behavior is in response to changes affecting mortgage tax relief and other finance costs, in a “significant” move towards a more professional buy-to-let market, according to one industry expert.
A leading broker highlighted the fact that landlords are now taking up opportunities to invest in furnished holiday lets or commercial property, for example.
People buying property to let as a holiday home will be able to claim the full tax relief as before, although certain rules apply. The landlord has to have the intention of making a profit from the property, which needs to be available for holidaymakers 210 days of the year and actually let for 105 days.
In terms of commercial property investments, landlords will pay lower stamp duty, at two per cent rather than the five per cent required for individual buy-to-let. Specialist lenders such as ourselves are able to offer these kinds of mortgages on commercial and semi-commercial property, such as a flat above a shop, for example.
Investors should speak to an expert advisor about the tax implications of limited company buy-to-let, although it’s clear that many options remain for landlords in this market. Here at Together, we are witnessing an increase in demand for limited company buy-to-lets and we’re happy to help with these more specialised mortgages.
