The financial pros and cons of buy-to-let property have shifted significantly in recent years. The 3% SDLT surcharge, changes to personal taxation and the ending of flat rate wear and tear allowances made these investments less attractive for some landlords. The balance of risk and reward is also affected by recent increases in interest rates.
These factors are balanced by the fact that the UK remains short of housing. There is strong demand for long-term lets, particularly in coastal areas that saw many properties converted to short-term rentals during and after the pandemic when more people took holidays at home.
Most market analysts expect property prices to fall during 2023 and that interest rates will also drop in the medium to long term. These, of course, are just predictions that come with the usual risks and caveats.
Legal Implications of Buy-To-Let Property
PowellsLaw doesn’t offer financial advice. There are other organisations and individuals qualified and regulated to help you in that regard. What we can do is to make sure you fully understand the legal implications of buy-to-let and make the process as simple as possible if you opt for this investment class.
We can help you with everything from acquiring an approved buy-to-let mortgage, to ensuring that you’re allowed to rent out your building and putting a tenancy agreement into place. Expert, qualified advice early-on can save a lot of inconvenience later.
Setting Up a Limited Company
One way to reduce tax exposure – particularly for higher rate taxpayers – is to set up a limited company to manage your buy-to-let properties. We can advise you on the legal implications of taking this route and guide you through the process and paperwork involved.
If you’re considering investing in buy-to-let, or if you’re an existing landlord and want to be certain that you’re operating in a legally-complaint and tax-efficient way, PowellsLaw can help. Contact us on 01934 623 501