Portfolio Finance

Investors with multiple properties often hold their portfolios in a partnership, giving them freedom to invest in both residential and commercial property and flexibility in terms of access to income and capital. When it comes to securing further finance – either to purchase further property or release equity to prove on an existing one – this can be done against the portfolio as a whole.

However, a number of recent changes from government have changed the way profits from a property business are calculated and taxed, reducing the flexibility landlords once had. Speaking to a broker about structuring your financing is now more important than ever.

What do you need to know about portfolio finance?

As a result of the changes to available tax relief, landlords will see the relief for finance costs on residential properties reduce to the basic rate of Income Tax, phased in gradually until 2020. So, if you own a property portfolio, you will likely experience increased challenges as a result of recent government changes to property taxes.

In 2016, investors saw the removal of the 10% wear and tear allowance for residential properties, as well as an extra 3% stamp duty land tax applicable to landlords who already own property for subsequent buy to let property purchases. Investors will now begin to feel the changes to the availability of tax relief for mortgage interest affecting rental profits.

How can Enness help with portfolio finance?

Regardless of changes impacting professional landlords, Enness has the contacts to be able to secure finance for even the most challenging of circumstances. We have a wealth of experience navigating this market, as well as relationships specialist property tax specialists who can guide you in structuring your portfolio in light of recent changes.

To discuss your options in the wake of these government policy updates, give us a call and one of our expert brokers would be delighted to help.