Property Portfolio Finance

If you have a property portfolio then ensuring the most effective and efficient structure is crucial.

Portfolio finance utilising two or more properties as security and can be structured as either single or multiple mortgages, the size of the portfolio can in theory be unlimited. Once a landlord holds more than four residential investment properties enhanced rules and regulations come into effect, so it’s important to gain specialist advice in this area.

Typically, one (or more) of the below will be a key consideration:

• How the portfolio is taxed*
• The lowest interest rate available,
• Longest lender commitment term,
• Maximum borrowing (typically up to 75% of the portfolio value is achievable),
• Repayment strategies i.e. Interest only, capital and interest or part and part,
• A single loan account/mortgage (for ease of administration),
• Multiple loan accounts/mortgages (for flexibility),
• Another other considerations/complications e.g. concentration, construction, type of property etc

*The tax treatment for properties owned in personal names (e.g. Mr Smith) versus those held within a Limited Company (e.g. Smith Properties Ltd), differ considerably.

If you own residential investment property and haven’t considered how the legal ownership can impact your tax bill then the first step is to speak with your accountant or a specialist property tax adviser.