Many landlords and property investors are wondering reluctantly if it's now the time to sell their rental property.
What with the increasing tax on rental income since April 2017, the end of the furnished property tax allowance, and recent low rent increases, a property sale is something that property owners are beginning to consider.
However, with current low interest rates on buy-to-let mortgages, this is also a great opportunity to think about whether re-mortgaging will make you considerable savings.
One of our landlords recently re-mortgaged a buy-to-let property with a 2 year fixed rate, at 1.89% interest rate – saving £356.07 each month (previously £617.37, new mortgage £261.30). This adds up to over £8500 saved in the 2 years!
In addition, if you have any financial reserves to invest in enhancements to your rental property, this should sustain the capital value, and increase the rental value too – assisting with improving your re-mortgage calculations.
To ensure that you receive the best financial advice for your circumstances, it is advisable to use a recommended independent financial advisor. If you’d like to know more, please just ask.
