Buy to Let
With buy-to-let properties in particular there is at last a glimmer of hope for buy to let investors and therefore would be buy-to-let landlords.
Firstly rents are on the increase- particularly in London. This steady increase is being fuelled to a great extent by all the uncertainty in the property market causing many prospective buyers to rent rather than buy whilst they save their deposit, particularly first time buyers.
However, there is much more exciting news which will bring a smile to the face of every buy to let landlord. In a nutshell there are tremendous tax savings to be realised with immediate effect.
Although it is not widely known, the Inland Revenue has recently clarified the rules with regard to the tax deductibility of mortgage interest against rental income, with surprising results.
It has long been the accepted wisdom that mortgage interest can only be offset against rental income if the borrowings have been taken out specifically to purchase or improve the property which generates the rental income.
The Inland Revenue, however, have now reclassified buy-to-let income and now accept that since buy-to-let investments are a business like any other the profits and capital introduced can be used or withdrawn as the proprietor sees fit.
As a consequence of this owners of buy to let properties who are looking to perhaps expand their property portfolio have the ability to re-mortgage and release equity from their existing properties and use it as a deposit on new properties whilst gaining hitherto unobtainable tax benefits.
Similarly those owners looking to re-mortgage in order to improve the property, could now benefit from a tax deduction for the total interest borrowed and not just the initial loan, obviously subject to rental income meeting lenders buy to let criteria.
The key to all this is the value of the properties when first let- Tara Finance is waiting to discuss with you the detail of how this works in practise.
BUY TO LET MORTGAGES ARE NOT REGULATED BY THE FINANCIAL SERVICES AUTHORITY.
YOUR BUY TO LET PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
IMPORTANT - Please Download & Print Out Our Initial Disclosure Document(IDD)
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Principal: Terry Gollogly, Tel: 0208 858 7675, Fax: 0871 661 3829, Email: enquiries@tarafinance.com,
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