The buy2let Shop reviews investment in residential properties as one of the best sources of regular income. Many people prefer investing in UK's buy-to-let property market instead of risking their money by investing in share market.
This move generally pays-off for buyers as they get some amount of money/income on monthly basis. But the amount บ้านมือสอง ราคาถูก of money you get is limited and very small. Therefore, the chances are that you may not like this fact. In such a situation, you would like to find a new way of turning your buy-to-let property for sale in London into a money-making machine.
In addition to this, being a buyer, you will also need to know about the following points in detail: • The best practices for landlords/investors to use their income to beat new buy-to-let rules • How landlords can avoid implications of "Hidden Mansion Tax" likely to affect the buy-to-let investors. • The process of converting buy-to-let properties for sale into a holiday stay for tourists for a short-term. • The possible consequences of the "Hidden Mansion Tax" and converting buy-to-let property into a holiday let for short-term.
Honestly, it will not be easy to talk about all of these four points in just one article. This is why we have decided to launch a series of articles to help you turn your buy-to-let residential property into a cash cow.
Let's begin with the discussion on the first point below:
The Best Practices for Landlords/investors to Use Their Income to Beat New Buy-to-let Rules?
Now, The Bank of England has introduced strict rules on buy-to-let borrowing. Property investment agents in London are of the view that these rules are to help landlords owning multiple properties. These new rules on the buy-to-let borrowing will help such landlords make use of their salary, investment income, and income in the form of pension for taking out a mortgage for buying investment properties in London.
The whole credit goes to the Bank of England's PRA (Prudential Regulation Authority). Landlords owning at least four or more buy-to-let properties will now have to abide by these new rules. This process initiated by the bank of England is known as Affordability Testing. • Property investment agents in London strongly advise landlords. Lenders or lending institutions to see the way this Affordability Testing actually works. • Private lenders and lending institutions will now have to take a closer look at the affordability level of investors applying for mortgage. Additionally, it will also be mandatory for them to assess interest cover ratios in full detail. • Some banks have initiated the use of a system called "top Slicing". It is a good news for landlords who are ready for buying high value investment properties in London, offering low yield. It is a good way for investors to use EPI (External Personal Income) for making up for any shortfall.
Now here arise some very important questions: • Are top slicing deals available everywhere in England/UK? • Which Lenders are making use of Top Slicing while carrying out their affordability calculations? • How private lenders or other lending institutes reacted to the changes introduced in PRA? • What will be the buy-to-let criteria for landlords? • Is the choice for landlords going to reduce? • Which are the lenders not accepting applications from portfolio lenders?
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