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.

 

 

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.

 

Securing an expat mortgage on a UK property

Finding the UK property you want is the first step and is relatively easily done. The next issue to address is raising that all important expat mortgage.

Good news is this is not as difficult as it sounds so don’t be put off or misinformed by what you may hear from the banks overseas. The expat mortgage market has grown significantly over the last 10 years and lenders are very keen to secure your business.

With the correct advice and support securing an expat mortgage can be a very simple process.

Getting this support is a vital component in the chain of events, due to the applicant’s location, as it is likely he or she will be living abroad.

Using an Independent broker registered with the FSA in the UK you’ll enjoy a number of advantages compare to “going it alone”.

These include:

• Choice of deals currently available
• Choice of lenders
• Expert advice
• Fully qualified adviser
• FSA regulated.

Despite all these advantages some believe they will be better off speaking to one bank in the UK about the loan they require. Experience shows that this is just not the case as you will only have a couple of deals to choose from, it is far better to have all options open to you.

Selecting the correct deal for you can save a large amount of money in the long term.

Can we assist?

If you require help with your new or re-mortgage, please do contact one of our fully qualified independent advisers.

 

Expat Yacht Crew lending expanding in all areas.

March 2023 gross mortgage lending to expats has increased by 6.1% from the month before, this is the fourth month on the run. In addition to the month on month increases lending this year has increased 15.6% overall.

Experts believe these strong figures are down to a very strong and buoyant UK property market which continues to offer superb long-term returns. There is definitely less confidence in the property values of other European countries.

Property continues to gain value in the UK at a steady rate and looks like continuing for the foreseeable future unlike the rest of Europe. Covid-19 has had an effect on the market, but the majority of experts believe this will be very short lived.

One other factor that has contributed to this robust growth is the number of re-mortgages completed. Both expat yacht crews and UK residents are living in the fear that interest rates are about to jump yet again.

These fears are justified as already a good many long-term fixed rate deals have been withdrawn from the market but there are still some extremely attractive deals on offer.

UK property offers stability.

The UK property market without doubt still offers value for money if you own a property or can afford to buy one. Anybody who has owned a property in a good area of the UK over the last 10 years would have seen their investment grow substantially.

It is expected that house price increases will level out as the year goes on with a steady and reliable growth rate, again spelling good news all round.

To sum up – traditionally the UK property market has always offered excellent value long term investment potential and there is no reason to believe this won’t continue.

Mortgage advice?

If you need assistance with a new or re-mortgage, then please contact our expert advisers who are waiting to help.

Yacht Crew Mortgage Advice. If you are from the UK and are a UK national but are living or working abroad as a yacht crew for a period of time then you may be able to get an expatriate mortgage.

Expatriate mortgages are much like standard UK mortgages. There are some lenders who specialise in expat mortgages and some that don’t.

Expat mortgages completing faster.

The time it’s taking this year to complete an expat mortgage has reduced significantly in the last 12 months.

The industry is seeing a new application in a straightforward case complete in a matter of weeks rather than months. A straightforward re-mortgage is now on average completing in less the 5 weeks which is significantly quicker than 12 months ago.

Yacht crews are advised to consult a mortgage broker.

Mortgage brokers are advisers who specialise in finding mortgages for those who want to buy property. The advantage of using a mortgage broker is that they should know what mortgage products are available to buyers in your circumstances from amongst the banks and building societies they work with.
They should also be able to find you the best type of mortgage for you, at the best interest rate.
Like to know more?

If you require help with your new or re-mortgage, please do contact one of our fully qualified independent advisers who will be happy to assist.