PORTFOLIO LANDLORDS

Buy-to-let property has the potential to be a great investment opportunity, and especially attractive to people who prefer tangible assets rather than stocks and shares. However, it is worth noting that the financial landscape is changing, and so it is worth considering how a portfolio of properties might best be managed.

As soon as you own more than one Buy-to-Let property, you could be regarded as a ‘portfolio landlord‘ – someone who is making their income from rent charged to tenants living in a range of properties – although the general consensus is that you should have mortgages on four or more Buy-to-Let properties to be officially classified as such.

When applying for a Buy-to-Let mortgage, lenders may determine your status as a portfolio landlord in two ways – either via ‘sole applications‘ or ‘joint (or more) applications‘ – while running their assessment and calculations for lending.

Sole applications – if you own four or more mortgaged Buy-to-Let properties (including the one you are applying for), the lender will class you as a portfolio landlord, but they will base their mortgage calculations on just this property.

Joint (or more) applications – if you are applying with a partner, who may co-own some or all of your investment properties and perhaps others separately, the lender will look at the loan-to-value ratio of the total number of properties in your collective portfolio, including the property you are applying for.

Suppose you want to keep all your properties with one lender rather than having to hassle around with multiple lenders. We can help you with portfolio remortgage products so that all your propers will we remortgage under the same lender. For more details feel free to contact us on 01959 532 502.