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Property Finance, Landlord Insurance, Landlords, Letting, Tenanted Properties, Uncategorized
The importance of specialist landlord insurance.
The Importance of Specialist Landlord Insurance As a landlord, arranging appropriate insurance for your buy-to-let property is crucial for safeguarding your investment. Comprehensive landlord’s insurance is essential to protect you and your finances from unexpected events that may result in an insurance claim. While regular household insurance provides cover for your building and possessions while […]
Property Finance
Guest Blog // West End Mortgages – Thinking of refinancing ?
Guest Blog // West End Mortgages – Thinking of refinancing ? There are various different ways and many different reasons that you may wish to release equity from an investment property. Most commonly, we see landlords release capital to purchase additional investment properties, or to fund improvements to existing properties. Applying to release additional funds from a property is commonly factored in as part of the remortgage application process. As with any mortgage, approval is subject to each lenders specific criteria. It is also important to ensure that you remain in the correct loan to value bracket, to obtain a competitive mortgage deal. A number of lenders will allow you to organise your new mortgage up to 6 months in advance of your current deal ending, meaning you can lock your new deal in as early as possible. If you are part way through a fixed rate mortgage, your lender may allow you to apply for a further advance (additional borrowing) subject to meeting their specific lending criteria. We have seen a number of lenders drop their interest rates over the last couple of weeks, meaning now could be a good time to review your mortgage options. #top .hr.hr-invisible.av-p4k55e-41f33b56717b8a07430b5c93a78d43d0{ height:20px;
Property Finance
Guest Blog // Specialist Property Finance – Open for Business ?
Guest Blog // Specialist Property Finance – Open for Business? The last few months have been challenging for landlords and property investors. With new legislation and packages introduced to protect tenants and the environment, landlords have had much to digest. Add to this the economic turmoil created by global factors and exacerbated by the mini budget, investors could be forgiven for thinking that specialist lenders are no longer keen to support this sector. Prior to setting up my specialist finance brokerage last year, I spent several years immersed in the specialist finance sector working with challenger banks and specialist funders. I have been monitoring the situation closely for the last few weeks and in my opinion, the Specialist Property Finance market is very much open for business. Yes, there was a slight pause in the wake of ex- PM Truss’s disastrous mini budget. The shock of the uncosted budget spooked the markets and this had a potentially devastating impact on the British economy. Many Banks and specialist lenders chose to temporarily withdraw their products and took a short period of reflection to understand the market impact and the knock on effect to interest rates. Almost all specialist Buy to Let lenders quickly returned to market with revised products, albeit interest rates have increased for all lenders (Ave 2.5% increase on 5 year fixed rate money). Some lenders have also tightened up their criteria to reflect the changes, whilst others have introduced new ‘tracker’ products. We have lived in a world where the Fixed Rate, at such historically low levels was an obvious choice for many, however we now see a shift in this space to some of the more competitive tracker rates available. An advantage of some tracker loans is they often do not have the high Early Repayment Charges that apply to most Fixed Rate products. Specialist Buy to Let lenders have been quick to recognise this change and have recently introduced a range of new trackers products to the market. Lenders and investors alike recognise that where there are challenges for some, there are opportunities for others. Bridging finance lenders in particular are well placed to support property investors and help them take advantage these opportunities via a range of specialist products. The following products are available to most experienced property investors. Bridge to Let A bridge to let loan provides a means for investors to buy a property quickly and then ability to refinance to a term loan. This can be used in situations where a property is unmortgageable for example where there may be a lack of kitchen or bathroom. It may also be used for auction purchases or ‘off market’ transactions where a fast turn around is important. This also works well where investors want to retain their cash reserves or do not have the cash available to buy the assets. It is especially prominent now that there is a greater focus to improve the EPC rating for each tenanted property. If investors can leverage more against the purchase price and reduce the amount they need for a deposit, they free up their reserves for property upgrades. Buy to let investors are being rewarded with better rates for more energy efficient properties. Portfolio Bridge Bridging can be useful for investors when they have an opportunity to buy a portfolio of properties. During difficult times like these, some investors decide to go in another direction and put their portfolios up for sale, and investors can often buy these ‘off market’ at a discount for buying in bulk. The investors position is enhanced if they can expedite the sale as a cash buyer or do not need a traditional mortgage, which can take time, to fund the purchase. Specialist Bridging companies are able to support experienced clients and can offer up to 90% funding against the purchase price as (if this does not exceed 70-75% of the open market value). A client contacted me recently with the opportunity to buy 6 Buy to Let units as part of a larger portfolio to be sold. Due to the volume of properties he was due to purchase, he was able to negotiate a 20% discount. I was able to provide indicative offers from two lenders on the same day, offering to fund up to 90% of the purchase price. This investor then only had to input 10% of the purchase price to secure the small portfolio. With plans to review the stock and make improvements to the energy efficiency of the properties, they will then re value and transfer the assets to a BTL term loan. By improving the condition and energy efficiency of the units the landlord may be eligible for more attractive rates on the BTL loan. The specialist lender providing this bridge is also able to refinance onto a term loan within 6 months. It is clear that there are still uncertain and perhaps challenging times ahead, however, it is encouraging to see that there is still a strong desire to support property investors with the doors to specialist property finance still very much open. If you would like to discuss any Buy to Let, Bridging or Development Finance proposal, please do get in touch directly with Peter McDermid Logic Property Finance Peter@logicpropertyfinance.co.uk Telephone: 07816497234
Property Finance, Buy To Let, Glasgow, Investment
Property Investment In Glasgow: Where To Spend Your Money in 2023
Interested in property investment in Glasgow? Here Cairn profiles the most popular areas of the city. Investing in buy-to-let in Glasgow is a no-brainer. A bustling, modern European city with a vibrant student population, a thriving economy, vital transport links, and huge rental demand, Scotland’s largest city represents a golden opportunity for property investors. But where should you spend your money in 2023? Let’s explore Glasgow in a little more detail. Why Invest in Glasgow Property? Glasgow Fast Facts Population: 635,640 (2020) House Price Avg: £207,250 (2021) Monthly Rent Avg: £992 (2021) Rental Yield Avg: 5% (the UK average is 3.6%) Around a third of Scotland’s entire population lives in or around Glasgow. The city itself has a population of 635,640 (as of 2020), while the Greater Glasgow area is home to around 1.8 million. The sheer number of people in this part of Scotland makes property investment in Glasgow very attractive — and for two reasons in particular: 1. There’s a Huge Demand for Rental Properties According to research by Admiral, demand for rental properties in Glasgow far outstrips supply, with 998 prospective renters for every 100 available rental properties. Only Salford (1,076 people for every 100 rental properties) has a higher tenant demand in the UK. For comparison, Edinburgh came fourth in Admiral’s list, with 535 potential renters for every 100 available properties. This demand has seen the average Glasgow rent climb to £992 PCM, while the average time to let is only 31 days. Bottom line? If you invest in a buy-to-let property in Glasgow, it probably won’t be empty for very long. 2. Business is Booming Glasgow isn’t just home to almost two million people. It’s also the beating heart of Scotland’s economy. According to Invest Glasgow, the city region generates 34% of all Scottish jobs and plays host to one of the fastest-growing technology investment hubs in the UK. Beyond that, leading industries include public health, hotels, restaurants, distribution, banking & finance, insurance, transport, and communication. Glasgow’s workforce is diverse, highly educated, and bringing home, on average, £30,000 a year. So, not only is there a huge demand for rental properties in Glasgow, that demand is being driven by desirable, professional tenants. Property Investment In Glasgow — Area By Area Wondering where to invest in Glasgow buy-to-let property? Here are 5 key areas worth exploring. 1. The City Centre Average house price: £205,000 Home to both traditional properties and modern new-builds, Glasgow’s city centre boasts plenty of choices, no matter your target market. Although many people working in the centre prefer to live outside of its boundaries, many more call it home. This is especially true of Glasgow’s student population. The fashionable Merchant City is worth a look if you’re hoping to rent to young professionals, while areas like Townhead, Charing Cross, and Cowcaddens are all within walking and public transport distance of the city’s universities. 2. The West End Average house price: £245,000 The best West End estate agents rarely have trouble letting properties in this stunning part of the city. Popular with young families thanks to its green space, young professionals thanks to its transport links, and students, thanks to its bars, cafes, and proximity to Glasgow University, demand for rental properties here is through the roof. Of course, this level of demand has a knock-on effect, with many of the properties in the West End among the most expensive in Glasgow. But if you find something that works for your budget, you could be onto a winner. Consider areas like Hillhead, Kelvinside, Dowanhill, Yorkhill, and Partick for any of the target markets mentioned above. 3. The East End Average house price: £180,000 Home to Dennistoun, recently named the 8th coolest neighbourhood in the world (the WORLD!), the East End of Glasgow is chock-full of character. From the iconic red sandstone tenements to thriving independent businesses, the East of the city is particularly popular with students and young families. Thanks to regeneration activities brought about by the 2014 Commonwealth Games, the East End is beginning to catch up with other parts of the city after years of neglect. Yet it remains cheaper than the city centre and the West End, so you could nab yourself a buy-to-let bargain. 4. The Southside Average house price: £200,000 When you venture south of the River Clyde, you’ll find a mixed bag of property investment opportunities. A traditionally industrial area of the city, riverside regeneration has brought a modern feel to many areas, while others remain affected by social problems. Areas like Govan, Ibrox, and the Gorbals offer a variety of affordable property types boosted by vital transport links. Meanwhile, the likes of Shawlands, Newlands, Queens Park, and Langside have a trendy vibe popular with young families and professionals. These properties are pricier, but always in demand. 5. Bearsden and Milngavie Average House Price: £291,000 Although technically in Greater Glasgow, Bearsden (G61) and neighbouring Milngavie (G62) remain popular with families and professionals alike. With great schools and handy transport links, these commuter towns offer a divine slice of Scottish suburbia, while also linking the outskirts of the city to Loch Lomond, the Trossachs, and the West Highlands. Larger houses in these parts tend to be more expensive than in other parts of Glasgow, although several affordable housing developments have been introduced over the past few years. Cairn: Property Investment In Glasgow Whether you’re looking east, west, south, or central, you’ll have plenty of choice in Glasgow. Do you want to learn more about investing in buy-to-let properties in the city? Get in touch with our property investment experts today. We’re here to help!
Property Finance, Buy To Let, Glasgow, Landlords, Property Investment
Glasgow Property Investment: 5 Reasons Why You Should Invest in Glasgow
Glasgow Property Investment: 5 Reasons Why You Should Invest in Glasgow Interested in Glasgow property investment? You’re in the right place. Glasgow has become an increasingly popular option for buy-to-let investors in recent years. As well as benefitting from surprisingly affordable house prices and high rental yields, landlords are also attracted by the city’s booming population and thriving economy. Read on to find out why Glasgow property investment is such a good idea. 5 Reasons for Glasgow Property Investment 1. Population size With Glasgow City Council recently approving its ‘City Centre Living Strategy’, the population of the city centre is set to grow significantly in the coming years. The aim is to double the number of people living in the area, with a target of 40,000 to be reached by 2035. To achieve this, vacant commercial space will be converted, brownfield land developed, and new public spaces created. This is great news for landlords since a higher city centre population means an increased need for quality rental properties. 2. A growing student city Approximately 67,000 people – more than 11% of Glasgow’s total population – are enrolled in higher education. In addition to prestigious universities like the University of Glasgow, Strathclyde, and Glasgow Caledonian, there are many other top colleges and specialist learning facilities. People come from all over the world to study here. And, of course, all these students need somewhere to live, leading to high demand for rental properties. Glasgow plays home to a lucrative HMO market which our team of specialists can help you navigate. To rent a property to 3 or more persons the Landlord must have an HMO licence in place to cover them as Duty holder and the property. We will take you through the HMO application process and procedures to ensure a full 3 years licence is achieved. Licences must be renewed every 3 years and properties can be inspected at any time by an HMO department or Fire Scotland. Maintaining a good property history is crucial both to passing inspections and ensuring your licence is renewed. We will carry out an initial inspection to advise you of any remedial works need to bring the property up to HMO standards our inhouse maintenance team will organise competitive quotes. Student property can be an extremely lucrative investment opportunity for landlords. In a recent report carried out by BVA BDRC on behalf of Paragon Bank, it was revealed that landlords who have student buy-to-lets in their portfolios are consistently achieving higher rental yields compared to those who don’t. 79% of the landlords surveyed said that high rental yields are what make letting to students so appealing. Read more: Buy-to-Let Glasgow Hotspots: Where to Look? 3. Thriving economy Glasgow’s is the fastest growing economy in the UK, significantly outperforming other core cities in recent years. Its industry has evolved greatly over time, moving on from its shipbuilding past to become a leading hub for sectors including technology, finance, sciences and tourism. More than 48,000 businesses (making up 28% of Scottish companies) call Glasgow home, providing more than 856,000 jobs (34% of the Scottish total). The city’s thriving economy is one of the biggest reasons many buy-to-let landlords choose to invest in Glasgow. 4. Future infrastructure developments Glasgow will soon be an even more desirable place to live, thanks to future infrastructure developments. The City Deal will fund several major infrastructure projects, with £400 million set aside to upgrade and regenerate the city centre, Sighthill and the canal area, Calton and the Barras, Collegelands, the Clyde waterfront and the West End. 5. Affordable house prices and rising rents According to statistics from Zoopla, in November 2021, the average price for property in Glasgow was £214,765. This is significantly less than the UK average of £264,000. When you couple this with the fact that rents are rising at the fastest rate ever recorded, this makes Glasgow a highly desirable option for landlords. The city has some of the best yields in the UK. As you can see, there are so many reasons for landlords to invest in Scotland’s biggest city. To learn more about the best Glasgow property investment opportunities, talk to one of our experienced team today.
Property Finance, News
Calls for Scottish Property Tax Reforms May Have Been Heard
Calls for Scottish Property Tax Reforms May Have Been Heard In 2015 the Scottish Government introduced the Land and Buildings Transaction Tax (LBTT), new tax brackets implemented in a bid to save homebuyers thousands of pounds and help get them on the property ladder. Introduced in 2015, LBTT was the first domestic tax charged in […]
Property Finance, Legislation
Investors Face Higher Tax Rate for Second Homes and Buy-to-Let Properties in Scotland
Investors Face Higher Tax Rate for Second Homes and Buy-to-Let Properties in Scotland New LBTT Higher Tax Rate Applies From 1st April 2016 Investors in Scottish property are preparing to face tax rate increases for purchases of second homes and buy-to-lets. From April 1 this year, a higher rate of Land and Buildings Transaction […]
