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Monday, April 10, 2017

Semi-commercial finance for landlords

For landlords who are deterred by the 2016 buy-to-let stamp duty increase, semi-commercial properties can provide an investment opportunity that avoids the higher levy. For example, a single freehold that includes a commercial property, such as a shop with living accommodation above it, is not subject to the 3 per cent levy increase imposed in 2016, because it is not considered to be a buy-to-let property. A savvy investor could buy the single freehold property and then create separate leases for the commercial element and the residential element. The flat above the shop could then be considered for a buy-to-let mortgage.

The recent rise in limited company applications has been documented previously and there could well be a further uplift this year after landlords file their tax returns and contemplate the real ramifications of the tax relief changes that come into effect in April

Many professional landlords are naturally entrepreneurial, adept at adapting to changes in the market and finding ways of making their businesses work. The recent spate of changes, although a hindrance for some, is likely to motivate serious buy-to-let investors to find alternative solutions to their problems.
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