Property Finance Legal Services
Attwells Solicitors are expert providers of Property Finance legal services. We have extensive experience acting for lenders, small and medium-sized enterprises (SMEs), and individuals on all types of property finance.
Property finance can be complex due to the many possible variations. Attwells’ expertise makes us the ideal legal firm to support you through this process. We have a strong authority within the property sector and can advise you on all types of property finance.
Buy-to-Let Mortgages
A buy-to-let mortgage is a loan for purchasing (or refinancing) residential property which is then let to individuals.
Recent legislation changes have made lending criteria for buy-to-let mortgages considerably more stringent.
Increased SDLT and phased removal of a considerable income tax benefit for buy-to-let landlords (where the cost of mortgage interest will no longer be tax-deductible) has seen a general decline in the popularity of buy-to-let mortgages in recent months.
Buy-to-let investors are acquiring premises through a limited company, as the scheme of taxation for corporates is seen by many as more favourable when compared to the new individual tax regime.
Buy-to-Let property market
The property market in London, which has historically been the mecca for buy-to-let property investors, has slowed down since the Brexit vote and capital values in the city have been on a steady decline since 2016. Other parts of the country, however, seem to be more buoyant.
The focus of buy-to-let investors remaining in London seems to be moving away from capital values (bigger gains are now seen to be available elsewhere in the country) and more towards yields.
This has seen a big shift from typical buy-to-let investment away from typical houses and flats and more towards potentially higher yield investments, such as student lets and HMOs.
It may be that the appetite for capital returns in London may return when the market is perceived to have bottomed out and there are some bargains to be had.
In the meantime, we expect to see a continued pattern of fewer buy-to-let deals being done particularly in London, and an increased proportion of those being acquired through corporate vehicles. For the time being this pattern shows no sign of abating.
The fact remains, however, that buy-to-let mortgages continue to make up a substantial part of the UK property finance landscape. Buy-to-lets continue to be the right investment for many who have done the maths and are satisfied that the figures still ‘stack up’.
Commercial Buy-to-Let & Investment Mortgages
Commercial investment mortgages are for those looking to acquire or refinance a commercial property with a view to renting it out to commercial tenants.
For many property investors, having a healthy proportion of commercial properties is an essential part of a balanced portfolio. For others, perhaps those with a residential portfolio, the prospect of branching out into commercial is a daunting prospect.
However, with recent changes to the residential BTL market and a greater focus on yield-based (as opposed to capital-based) investments, we are seeing an increase in clients taking the leap into acquiring commercial premises.
Some potential benefits of commercial BTLs:
- Potentially higher yields
- A ‘clear’ rental stream, meaning that Tenants need to undertake maintenance or fully reimburse the Landlord for the cost of maintenance
- Potentially less initial capital expenditure to acquire the site.
If you are looking to acquire commercial premises through finance or looking to refinance your existing properties, it is essential that you have the right lawyer in your corner.
Bridging Loans
Bridging Loans are short-term finances that are usually arranged within a short time frame.
Bridging finance is useful to gain capital quickly and typically is an interim solution until a lower-interest, more long-term solution can be found. As the name suggests, they exist to ‘bridge’ a gap.
Bridging finance is always used to raise finance quickly, and often in one of the following scenarios:
- Property refurbishment
- To complete a development
- To purchase property that is unsuitable for lending from a mainstream lender
- To bridge a finance gap between the acquisition of one property and the sale of another etc.
Since it is for a specific short-term purpose, interest rates can be higher than traditional term loans. A bridging lender will also normally require a clear exit strategy, to ensure that the bridging loan and any interest costs will be fully repaid.
Whatever your motivation for obtaining bridging finance, whether you are an individual or a company, you need the right lawyer in your corner.
What you can expect when instructing Attwells Solicitors
Property Law Articles
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