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ADVISING IN THE NEW BTL LANDSCAPE

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Presentation on theme: "ADVISING IN THE NEW BTL LANDSCAPE"— Presentation transcript:

1 ADVISING IN THE NEW BTL LANDSCAPE

2

3 OPPORTUNITY FOR ADVISERS
Large lender appetite Increased demand from landlords Increased revenue Referrals from other brokers and professionals

4 SUMMARY OF CHANGES Stamp duty Wear and tear allowance Tax changes
PRA changes to affordability PRA changes for portfolio landlords Ban on letting agents fees HMO reform EPC changes ( Interest Rate rise

5 ALTERNATIVE PROPERTY HOLIDAY LETS
COMMERCIAL PROPERTY Lower stamp duty costs Mortgage payments offset for tax purposes, even for individual applicants Partially offset for semi commercial also Must qualify as a Holiday Let business Mortgage payments offset for tax purposes, even for individual applicants Lenders not bound by PRA affordability

6 ALTERNATIVE STRATEGIES
Property refurbishments Bridge, develop and sell or rent HMO and multi let property

7 ASSESSING AFFORDABILITY
Subject property rental calculation Background portfolio aggregate rental calculation Individual background property rental calculation Background portfolio aggregate LTV Minimum income requirements

8 Rent to cover actual payments
LENDER SUBJECT PROPERTY INDIVIDUAL (Basic tax/higher tax) 5 YEAR FIXED RATE STRESS TEST BACK GROUND PORTFOLIO AGGREGATE B/G LTV MAX B/G PORTFOLIO MAX NO. COVENTRY 125% - 5.5% @ 5% 5.5% 65% 10 FLEET 5% None unlimited TMW 125% - 5.5% @ 4.99% 4.5% - 5.5% 65-75% KENT RELIANCE 125% - 5.5% @ pay rate VIDA 115% - 5.5% Rent to cover actual payments 80% 50 LENDER COMPARISON

9 DOCUMENT REQUIREMENTS
Spreadsheet – key to enable background calculations and to place deals with the correct lender Portfolio landlords subject to specialist underwriting Business plan Cashflow Asset and Liability

10 TOOLS AND SUPPORT BROKER TOOL BOX

11 HELPDESK www.connectbrokers.co.uk 01708 676135
Connect for Intermediaries is a trading style of Connect IFA ltd, which is regulated and authorised by the Financial Conduct Authority


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