On the other hand, the number of buy-to-let mortgages on offer for limited companies tends to be lower than for private individuals. You may find it more difficult to arrange a mortgage, and you'll also have to file annual accounts – which is done by an accountant – and this can also be pretty costly.
Are there inheritance tax benefits of a limited company?
Landlords planning to pass their property portfolio down to children or family members could avoid large amounts of inheritance tax by buying the property through a limited company. You’ll need to speak to an expert for individual personalised advice on this.
Are there good buy-to-let mortgage deals at the moment?
If you’re looking to buy a property to rent it to other parties and you’re not a cash buyer, you will likely need a buy-to-let mortgage. The good news is, there are some fantastic mortgage deals to be had at the moment, with attractive rates.
As each application is assessed individually by the lender and based on your personal circumstances, a mortgage appointment with a Countrywide Mortgage and Protection Consultant is highly recommended. They can help you every step of the way to build your property portfolio. Please note, Countrywide Mortgage Services do not provide advice in relation to tax and capital gains, therefore you would need to seek independent advice on this.
Have a look at some of the great buy to let mortgage deals on offer at the moment with Countrywide Mortgage Services.
How hands on do you want to be?
There’s no doubt that buy-to-let investments require a little time and effort. You’ll need to research and buy the property and then manage the investment from then on.
You need to be willing to go through the buying process, do any improvement work, furnish the property, and then decide whether or not to instruct a letting agent to then manage it for you…
What are the benefits of using a letting agent to manage your property?
Regulations are a huge factor to consider. You need to keep safe and legal and one of the best ways to ensure this is by using an expert letting agent. For example, landlords currently need an Energy Performance Certificate (EPC) with a minimum rating of E. You also need to conduct electrical safety checks every 5 years and gas safety checks each year. Sometimes having an agent there to handle these intricacies can be really beneficial. It gives you peace of mind, reduces your workload and frees up your time.
So, is buy-to-let worth it in 2021?
No investment is without risk but if you take a long-term view of it, buy-to-let can work for you. It’s not a get rich quick scheme but there is a good income to be made if you go in with your eyes open. Although some of the recent changes make buy-to-let less attractive to some investors, if done right, it still remains profitable. Whilst rental yields have declined, it's important to remember that although rental income is important, capital growth is also a factor that makes investing in property very lucrative.
One of the first things you need to ensure is that you’re getting the right price for your rental property. Your best bet is booking a valuation with one of our lettings experts who can give you an idea of rental income, answer any questions that you may have and also give you an idea of how you can increase your yield.
Alternatively, grab a 60-second valuation now using our online algorithm. You can do this on a property you currently own or on a property you’re thinking of turning into a buy-to-let. It will give you a good idea of what you could be earning in rental income.