Liverpool Property News

Thinking of becoming a Buy-To-Let Landlord?

Gill - Head Gillian Bell Jan 1, 2020, 11:30 AM
The process of starting your own portfolio may at first seem daunting. There seems to be endless news articles / changes in government policy (stamp duty increased to 3% for second homes) / new regulations (PAT testing to become compulsory?) that can act as a deterrent to even the most fearless investor. A good letting agent will hold your hand through all the red tape and regulations and allow you reap the clear and obvious benefits of renting out your own property.

Firstly, BTL mortgage rates fell in the third quarter. Both two and five-year fixed loans are cheaper now than they worth 12 months-ago. Ensuring you keep more of that rental income.

Lenders are keen to manipulate the market slightly to entice current and future landlords with lower rates due to tighter rules and the fears and uncertainty over Brexit and the impact this will have on house prices.

Top Tips

  • Managed or Solo? – an obvious headache for landlords. The management fee always feels expensive until you have an issue. You can pay up to 20% for a fully managed service (Peter Anthony offer fully managed at 10% + VAT – see our fees here). The main question you must ask yourself is, ‘how much time can I spare on the management of my property?’ But also, ‘how close is my BTL property?’

    You just also consider, as a Landlord going solo, how up to date you are with new legislation and policy changes. A good letting agent stays abreast of regulation change and updates their landlords accordingly.

    Your management fee is also tax deductible (more below), so you can normally knock a couple of % off…

  • Tax Breaks will soften the blow – Repairs, service charge, ground rent, management fees, utilities paid by landlord are all tax deductible. The cost of replacing items is also allowable. Cuts to mortgage interest tax relief will occur this year, with a 20% income tax deduction instead. 
  • Do your homework – It may seem obvious, but your rental income has to be enough to pay your BTL mortgage (and a bit more). Lenders will complete a ‘stress test’ to ensure you can pay your mortgage even if there is an increase in mortgage interest rates.

 

If you want to talk to explore investing in a BTL property, please contact us for a no obligation meeting to discuss investment opportunities and to calculate profit for a proposed purchase.

Load more comments
Thank you for the comment! Your comment must be approved first
comment-avatar

Join our Newsletter

About The Blog

This Blog looks at what is happening in Liverpool, the property market, events and community news along with investment ideas and tips for those loosing to invest in the area. 

Gill Bell - Editor

Gill - Head









Liverpool is one of the fastest growing property market in the UK.  If you need any assistance buying, selling or letting properties in the area we have over 30 years of experience and local knowledge to help.

T: 0151 214 3480
E: [email protected]

"Questions answered within hours. "

- Claire

"Ben has been really supportive"

- Olivia

"Really helpful, professional staff"

- Carol

"Easily reachable and quick to answer questions"

- Matthew

"Peter Anthony are fab"

- Bilal

"Excellent Service"

- John

"Really pleasant agent to deal with!"

- Luke

"Patient and Helpful"

- Diana