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13 Nov 2020 – Buy to Let Market Still Active

“Despite changes to the taxation of rental income, we are still finding that Landlords seem undeterred!” Debbie, Director at Willowlace Ltd says. “There is still a lot of misinformation about the new taxation rules where many landlords believe, incorrectly, that they will lose all of their tax relief on the mortgage interest.

Particularly for Self Employed Directors of Limited Companies there is in the main no change to the relief due to the Order of Taxation ie Salary, Rental Income (amongst other things) and then Dividends.

Therefore, most of these Clients will already be receiving only 20% tax relief and will continue to do so.”

Debbie continues “When looking at expanding their portfolios, or even buying a first Buy to Let property, the current Stamp Duty holiday means that Landlords will also benefit from the 0% Stamp Duty up to £500,000, but they will still need to pay the 3% Additional Stamp Duty on the entire purchase.

But there are still savings to be made. The Stamp Duty on a £250,000 Buy to Let property would have been £10,000 before the Stamp Duty holiday, where it is now only £7,500.”

“The great thing about using us for your Buy to Let mortgage is that we are not only experienced in raising mortgages for Landlords, but through our sister company Fleur Lettings, we are able to find super tenants for local Landlords too – and we do not charge VAT on our fees, which means that our Landlords immediately save that 20% cost”.

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