Why Your Landlord Might Sell You The Property You Are Renting.
We are now starting to see the effects of the buy to let surcharge and income tax changes. Already this year we have seen a number of properties come on to the market where private landlords seem to be offloading some of their portfolios.
From April 2017, landlords will no longer be able to offset their mortgage interest payment costs at the rate they pay income tax (currently up to 45%). They will see this drop over the next 3 years and replaced with a 20% tax credit. Research shows that this will see 440,000 landlords pushed into the higher tax bracket.
Freeing up property on the open market was one of the things that the Government were trying to achieve with these tax changes. So, if you are currently privately renting a property, have been a tenant for a while and are interested in buying it this could be a good time to give your landlord a call. When these tax changes come in to force, some Buy to Let investments won’t be as profitable as they once were and your landlord might be persuaded to sell. Perhaps even at a reduced price!
If the landlord does offer you a discount on the open market value, then that amount of discount could potentially be used towards your deposit, this is called a “Sale Under Value”.
If your landlord does agree to sell you the property, please contact us to discuss your mortgage options and to book your free face to face mortgage consultation.
Mortgage Broker in York