Landlords You may know a lot about owning multiple properties but we can assist you when you want to sell them
Death of Buy-to Let
Majority of landlords were shocked when new tax changes were unveiled in summer 2015, followed by the new stamp duty changes which came into effect on 1st April 2016. Many investors remain unaware of the change or underestimate their severity.
At the heart of the change is landlords’ future inability to deduct the cost of their mortgage interest from their rental income. In other words, tax will be applied to the gross rent received – rather than what is left of the rent after the mortgage interest has been paid. This means that the majority of UK landlords will be in a minus situation at the end of each month and with a very sizeable tax bill at the end of each year.
Another penalty for property buyers and sellers
If you have sold your home and the completion date was after 1st April 2016, the chances are that the value of your property had dropped. This is due to a new ruling that came into force on the 1st April 2016 that stipulates anyone buying additional residential property, including second homes and buy-to-lets, has to pay an extra 3% in stamp duty – please see table below.
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The BMH Solution
We will buy your investment properties before you face the prospect of an annual loss. These losses could balloon further as interest costs rises. Where you have a portfolio, it will make sense to sell one property and reduce the borrowings on others.
This is due to a new ruling that came into force from 1st April 2016 that stipulates anyone buying additional residential property, including second homes and buy-to-lets, to pay an extra 3% in stamp duty.
This additional charge will apply above the current “stamp duty land tax” rates (see table below).