Have you thought about using PDR’s as a way to reduce the 3% buy to let stamp duty increase?
There is a big drive at the moment to re-utilise redundant office space, empty floors above shops, and perhaps the empty shops themselves for residential use. There are lots of opportunities to buy this type of stock at a relatively low cost, and as a further advantage it is likely that you will not pay any premium on stamp duty, as you will be buying commercial not residential at the point of purchase.
Planners are keen to provide residential use permissions for such schemes, and in many cases the concept of ‘permitted’ development rights’ will apply i.e. that no planning permission is required. Always check with the planning department or a specialist consultant first. However, not only is stamp duty avoided but most schemes like these generate a ‘developers profit’ of around 20% in addition to the great yield they may get on renting out the completed property.
Here at Key refurbishment and development scheme funding for conversions are a core area of our expertise. As you may also be aware we have over the years developed considerable knowledge about such schemes in more general terms. So to get the best funding and wider expertise, please speak to our friendly team about your development and refurbishment finance needs.