Conveyancing for Buy-to-Let Purchases, Sales & Remortgaging
As has been widely reported, recent steep interest rate rises are already causing serious pain for hundreds of thousands of mortgage holders coming off cheap fixed-rate deals, including Liverpool and Chester buy-to-let landlords. Savills recently reported that the net profits of buy-to-let investors fell below 4% in the first quarter of 2023 (the lowest since 2007), compared with 20%+ profits over the last decade. This is obviously having a dramatic impact on the finances of many buy-to-let mortgage holders, who face the same cost-of-living pressures as everyone else, and many are starting to question whether their properties remain a good investment.
Challenges for Buy-to-Let Landlords
Apart from a tripling of the interest paid on their mortgages, buy-to-let investors face a number of other pressures; they already pay a 3% surcharge on top of the standard rate of stamp duty, and must pay income tax on their buy-to-let earnings. Mortgage interest tax relief has also become progressively less generous in the last few years, and is now limited to the basic rate of income tax, meaning that higher-rate taxpayers can no longer claim back any tax on their mortgage payments.
New Rights for Tenants and Energy Efficiency
Meanwhile, the Renters’ (Reform) Bill has been introduced to Parliament, which seeks to abolish Section 21 no-fault evictions, establish a right for tenants to keep pets, introduce periodic (rolling) tenancies and establish an ombudsman to regulate the private rented sector in England. In addition, research from Knight Frank suggests buy-to-let landlords face a £17.9 billion bill to improve energy efficiency by upgrading their properties to an Energy Performance Certificate (EPC) rating of C or above. Apart from surging interest rates, therefore, various other important factors are pushing buy-to-let landlords towards selling and exiting the market.
Liverpool Solicitors For Buy-to-Let Properties
Our firm has decades of experience of buying and selling residential properties in Chester and across Cheshire and North Wales as well as the city of Liverpool and across Merseyside. Legal advice from conveyancing solicitors with local knowledge and expertise can be critically important in safeguarding the interests of a buy-to-let property buyer or seller. We offer competitive fixed fees, no obligation free quotations and no hidden costs. Get in touch with our conveyancing team for legal advice on buy-to-let property transactions that you can trust.
For further information or advice about Residential Conveyancing please contact Bartletts Solicitors today at our Liverpool or Chester offices or email advice@bartletts.co.uk.
Alternatively, you can Make An Online Enquiry and one of our team will be in touch with you as soon as possible.
