Buy to Let investors are currently being hit with a number of financial bombardments, from the reduction of tax relief on interest charges, 3% stamp duty premium, and increasing regulation, to name a few.
So have yourself or your clients considered commercial or semi-commercial investment property as an alternative to residential? The challenges vary but some of the benefits are;
- Lower rates of stamp duty on acquisition, particularly for sub £250,000 purchases.
- FRI (fully repairing and insuring) leases which place the responsibility on your tenant to insure and maintain the property not the landlord.
- Higher yields-typically averaging 10%, although will be lower if you have a very strong tenant.
- Full relief on loan interest.
Commercial Investment property is a specialist area and it is important to understand the difficulties as well as the positives. Lenders are currently more careful and loan rates can be higher as a result of this. However, there are opportunities and here at Key we have the expertise to support and advice in obtaining funding for yourself or your clients first commercial acquisition. Please do not hesitate to get in touch and take advantage of our 250 years combined experience in commercial finance.