In the last three years, the number of buy-to-let landlords who have turned their hand to commercial property investment has tripled, this news comes just three months before the newer and tougher tax regime for buy-to-let properties comes into full force, which is likely to result in thousands of landlords falling into loss-making territory.
Therefore, it is hardly a surprise that residential landlords are looking for ways to boost their portfolios and avoid the tax changes. With the tax changes yet to apply to commercial properties, property investors have seen this opening in the market as a way to make some extra money and are turning to shops, restaurant, offices and industrial spaces.
Whilst investors have already been hit by several tax changes already, it is not all doom and gloom with confidence in the market remaining high – the move to commercial letting is being viewed as a way to branch out further before many of the tougher tax changes apply.
George Walker, commercial auction partner at property auctioneers Allsop said: “We’re getting a lot of investors into our market because of the changes to buy-to-let. Once they have bought one, they can’t believe the simplicity and want to do it again.”
However, like any investment, buy-to-let landlords considering the move to commercial property should do their research. Not only will your responsibilities as a commercial landlord differ from those as a residential landlord, but there will be differences in yields, leases, mortgage applications and possibly longer periods of the property not being rented.
In a previous blog we have discussed what other fees accompany a commercial mortgage, click here for more information.
Due to the complexity of commercial mortgages, it is highly recommended that you use an independent broker who specialises in commercial mortgages. They will have the contacts and market knowledge to ensure you get the best deal.
If you need a commercial mortgage and would like to discuss your options with First Financial Solutions specialist team, please click here to contact them or call them us: 01639 262222