Could Commercial Property be the Next Big Thing?

Could Commercial Property be the Next Big Thing?

Welcome to Surelock Network Auctions May Newsletter

The latest mortgage lending data from the Council of Mortgage Lenders (CML) confirmed what many suspected – lots of property investors worked hard to bring purchases forward to beat the new stamp duty land tax rules on multiple property owners.

The CML estimates mortgage lending hit £25.7 billion in March, up 43% from February’s £18 billion and 59% higher than £16.2 billion in March last year. It also stated: “the substantial jump in lending in March was significantly influenced by a late surge of activity to beat the government’s stamp duty change on second properties.”
Looking ahead, mortgage lending activity is expected to slow down again as many investors take a step back and consider their next decisions very carefully. Some investors may turn to the semi-commercial property sector to make their next purchase. Why? Because mixed use properties fall under the commercial sector and, as such, are exempt from the new stamp duty rules.

So, with this in mind it’s worth taking a look at your local property auction to see if any such properties are coming up in the next few months. If they are, why not book a viewing and see what investment potential they might have?

BTL Mortgage Products Rise

Staying on the subject of BTL, latest industry data show that the number of BTL mortgage products available has recently increased. Figures from BTL mortgage specialists Mortgages for Business show that in the first three months there were 1,105 BTL mortgage products available.

That compares with the 963 products that were available in the fourth quarter of 2015 and the 839 that were on offer in the first quarter of last year. However, while the number of products increased, the number of providers was unchanged at 33.

This suggests BTL mortgage providers are working harder to keep BTL investors active, despite the higher initial costs for owners of multiple properties. If a suitable investment property comes up, it wouldn’t hurt to investigate these new products to see if the finances will work, post-tax increase.

Panama Papers Highlight London Property Part in Tax Evasion

The Panama Papers published at the beginning of April named a large number of high profile individuals as being involved in some form of tax evasion. The UK’s own Prime Minister David

We hope you enjoyed Surelock Network Auctions’ thoughts on the issues discussed in our May newsletter. If you want to keep up-to-date with Surelock’s auction dates visit our website and to keep abreast of our news and views, take a look at the blog section.

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