17 Heritage Park
Hayes Way, Cannock WS11 7LT
01902 851700
Client Support
Client support
Hayes Way, Cannock WS11 7LT
Client Support
Client support
Talk to an Expert Now – 01902 851700
The benefit of placing your properties under one lending banner makes perfect sense for landlords with 4 or more properties. Simply, running the portfolio through a Limited company (Specialist purpose vehicle – SPV) you have one repayment per month, rather than a number of differing payments for each individual property.
Tax Efficient
A portfolio mortgage can allow a landlord to become more tax efficient. Funds withdrawn from the portfolio will soon be taxed as a whole, rather than paying tax solely on net income. If a landlord retains funds in the portfolio, funds can then be used to renovate or even purchase additional properties. By doing this, landlords will pay the lower rate of corporation tax as outgoings will be classed as expenses.
With equity building up in your portfolio, you can tap into this to expand your property portfolio even further. In this example if your property portfolio was worth £1 million, and your borrowing was £650,000, the portfolio would have £350,000 in equity available. Assuming a 20% LTV ratio you would have £150,000 available to buy more property and increase your rental income.
You can borrow against this equity usually based on the loan to value across the entire portfolio.
Opening the doors to a better funding solution…