We work with the U.K’s main Property Corporate Asset Management Companies representing their clients for repossessions, probates, part exchanges, drive-by and formal valuations and also, directly for large blue chip companies with substantial property portfolios in the Bournemouth & Surrounding Areas.
Our experience, systems and service ensure the whole process from start to finish is fluid.
New regulations come into office in eight days for larger property portfolio landlords. With the industry still feeling the ramifications of increased stamp duty, alterations to tax relief, etc, portfolio Landlords must now prepare themselves for more change from the Bank Of England Prudential Regulation Authority (PRA) new underwriting standards for portfolio landlords which become mandatory on 30th September 2017.
From the 1st October, Landlords with four or more mortgaged buy to let properties will have to provide and validate details on all the properties they have an interest in. (This means over 25% ownership).
So, what does this mean for you?
Lenders will need to make sure you are not over-exposed and will look to stress the whole property portfolio, i.e. they will take your entire buy to let property portfolio into account when making a lending decision. As yet, we don’t know exactly how each lender will apply the guidelines but you can pretty much guarantee they will be looking at:
- Your property investment experience
- The total amount of your mortgage borrowing across all properties
- Your assets and liabilities, including tax liability
- The merits of any new lending in context of your existing buy to let portfolio – together with your business plan
- Historical and future expected cash flow from your portfolio
- Your income both from property and elsewhere
Be prepared, the lenders are likely to be asking for your up-to-date property portfolio spreadsheet, a business plan, cash flow forecasts, your last three months’ bank statements, SA302s, submitted tax returns, ASTs and possibly income and expenditure statements for your portfolio.
If you are looking to review your property portfolio, I would recommend looking into it sooner rather than later – we can help with this!
For both Sales and Lettings, we work very closely with our property tax advisor and work out the best exit strategy or management strategy with business plan to maximise returns, minimise risks and look at the best routes in regards the tax elements.
Written by James Scollard, Founder
Tel: 01202 789699
Email: [email protected]
Posted: 22nd September 2017