yacht crew expat mortgages

Expat Buy-to-Let Mortgages

/in /by

Expat buy-to-let investors on the increase yet again,

This is still a growth area for expat investors as more people see the buy-to-let market as a sound option for the future. Traditional forms of investment such as banks and building societies are still producing poor returns so investors are looking elsewhere.

The house rental market in the UK is very buoyant as people trying to get onto the property ladder find it more difficult due to rising house prices.

The demand for good rental property has increased over the last 12 months and would seem to be continuing.

Experts expected the expat buy-to-let market to decrease, and it did after all the new regulations were announced but that trend has now been reversed.

Expat buy-to-let investors. 

  1. Select the type of tenant you are targeting this could be a young couple or single person in a professional career.
  2. Make sure when selecting a property for buy-to-let it is in an area which fits your target tenant. Is it close to schools, shops, and local businesses for example?
  3. Selecting the correct buy-to-let mortgage to fit your long-term planning. Do you want a fixed rate or a tracker or indeed any other product that is on offer? It is very important to seek professional independent advice when it comes to choosing your mortgage.
  4. Look after your tenants as you don’t want your property empty for long periods of time. Make sure you have a good maintenance company in place to look after any problems that may arise.

Need some help?

Please make contact and one of our expert independent mortgage advisers will be pleased to assist.

 

yacht crew expat mortgages

Ltd Co Borrowing ?

/in /by

Expats are you contemplating of incorporating your letting business?

If so – Proceed with caution and do get independent advice!

Get sound advice from a group of accountants and brokers alike

Specialists expat buy-to-let brokers and accountants up and down the country are urging expat buy-to-let landlords to tread very carefully and seek appropriate advice before jumping into incorporating their property business into a limited company.

The reduction in mortgage interest tax relief and the introduction of stamp duty are two relatively recent initiatives that have resulted in some landlords reassessing their property businesses and deciding to incorporate.

Lenders are predicting there will continue to be a growing trend towards limited company buy-to-let activity this year. But they warn this may not be the best practice for everybody.

It is understandable that expat buy-to-let landlords want to avoid paying more tax than is necessary, it is essential, as with any investment, that they fully investigate how their personal circumstances apply to buy-to-let taxation.

Many expat landlords are perhaps seeing the headlines and are considering incorporating their property investments, as limited companies are taxed differently to individuals.

Taxation for an expat is a complex issue and landlords should before considering this move seek advice from a tax specialist. This move will ensure that their buy-to-let venture would actually be better off tax-wise, in a limited company.

Help required?

If you are looking for a new or re-mortgage, please do make contact and one of our fully qualified independent advisers who will be happy to assist.

 

 

yacht crew expat mortgages

Rental Property In Great Demand.

/in /by

 

Expats are reaping the rewards.

Tenant demand has risen in 2023 to hit the highest level recorded since 2011, according to recent demand figures.

62% of landlords who reported increasing tenant demand in the first quarter of 2023 is double that of the same period a year ago. And it’s almost four times the level reported in Q1 2020, when only 16% of landlords felt that demand was growing.

Over 700 landlords including expats were asked to assess tenant demand over the previous three months. A ‘significant increase’ was seen by 34% of respondents, with a further 28% reporting slight increases.

London calling

Increasing tenant demand was reported by 84% of expat landlords operating in Central London, a substantial increase on the 12% seen in Q1 2021. This places Central London alongside the Southwest and Wales as the regions seeing the highest levels of increasing tenant demand during the previous three months.

Another record high in the proportion of landlords reporting increasing tenant demand reaffirms the need to increase the supply of homes in the private rented sector.

Taxation

While it is clearly important that landlords are taxed appropriately and the sector is regulated to ensure high standards are maintained, the government must ensure that buy-to-let remains attractive enough to expat investors who are vital in supplying the properties needed to meet demand.

Can we assist you?

If you are looking for a new or re-mortgage do get in contact and one of our qualified independent advisers will be happy to help.

yacht crew expat mortgages

Holiday Buy-to-Let Mortgage

/in /by

Expat holiday buy-to-lets are getting more popular and profitable.

The rise in staycationing has fueled an increase the use of properties as holiday lets. Attracted by the potential returns and keen to diversify their portfolios, existing expat buy-to-let landlords are expanding their portfolios into holiday let, as are would-be investors who dream of owning a holiday cottage that will pay for itself.

As a result, intermediaries have witnessed a rise in mortgages for holiday let mortgages, i.e., loans for properties that will be rented out on a short-term basis, for at least part of the year to tourists – as a business. These commercial transactions are not difficult to administer but like all niche products, they do require a certain level of understanding.

The number of lenders in the market is relatively small, although this is changing. However, in recent years other lenders, including some specialist funders, have joined the fray.

So, not the largest selection in the world but certainly enough to find solutions to fit a variety of borrowing circumstances. It’s worth noting, that not all sourcing tools list holiday let mortgages in depth so if you are an expat and interested it would be wise to contact an independent broker.

For the most part, standard buy to let mortgages are designed for use on properties that will be let for a minimum of six months on assured shorthold tenancy agreements (ASTs).

As such, the majority of buy-to-let products do not cater for holiday accommodation and borrowers risk breaking the terms of the mortgage contract if they let the property out on a short-term basis.

This should not deter borrowers, however, as holiday let terms can actually be favourable.

Need some assistance?

As an Expat and you are looking for your first mortgage or contemplating a re-mortgage, please do call one of our fully qualified independent advisers who will be happy to help.