We are seeing a boom in the buy-to-let market right across the UK and there are no signs of it decreasing. With more couples looking for quality rental properties growing day by day landlords are reaping the rewards of their sound investment. Currently all is in favour of the investor which includes very low mortgage interest rates and rising rental income. As landlords will know it’s not all plain sailing and expenses have to be carefully monitored to maximise profitability. Tax efficiency is very important when it comes to profit and loss and you can claim against many day-to-day expenses listed below. Mortgage broker and arrangement fees Mortgage interest charged on the loan Letting agency fees (If you employ an agent to act for you) Securing a tenant (If you advertise your own property for rent) Insurance premiums (Buildings cover) Maintenance and repairs (Carried out on the rented property) Furniture (If the property is furnished) Ground rents and service charges Council tax and utility bills (If you pay what is normally paid by the tenant) General expenses (All costs against running your property/portfolio) As a landlord you must submit a self-assessment tax return annually but if you use an accountant then their fees are deductible as well. Another thing to consider is the ownership of the properties as you may have a spouse who is a lower rate tax payer. We would recommend you seek professional advice as there are so many ways to increase your profitability. The correct buy-to-let mortgage Another vital ingredient in the profitable process is to make sure you have the correct mortgage plan to meet your growing needs in the short and longer term. There has never been such a vast selection of buy-to-let mortgages to choose from and getting the correct advice is crucial. Mortgage assistance? We are here with a fully experienced team waiting to assist you in selecting the correct buy-to-let mortgage to suit your needs.
