Investing in bricks and mortar has always been a popular method of investing money.
Commercial Property investment is about buying a premises with a full, repairing and insuring lease that means that the Property Investor receives a strong yield in terms of rental income without deductions. Attwells’ Commercial Property Team led by former City Lawyer Nick Attwell is expert at identifying that the income stream is secure, increasing it if possible and ensuring it is not subject to irrecoverable sums.
Often the income is less secure in residential property investment, typically not longer than 12 months and therefore in addition to securing the income stream a property Investor buying residential property will be more concerned in the underlying asset value and capital appreciation.
Historically residential property investment was undertaken in personal names for flexibility and because the finance costs were cheaper. Individuals would use Declarations of Trust to share the tax burden. This still takes place but Attwells’ Declarations of Trust Team are now more focused at protecting the cash contribution and equity.
In the last few years changes in particular to the income tax treatment of mortgage interest and the SDLT rates has meant that residential buy-to-let has become significantly less popular and Property Investors buy in companies. Attwells’ Company Buy to Let Team are experienced at dealing with all the major mortgage lenders and completing quickly on behalf of their clients. Attwells’ Company Buy to Let Team are also working closely with accountants at advising clients about how to transfer their properties from personal names into a company structure.
Buying at a good price means that the setting of an auction where the market determines the price can be a good source of commercial and residential property for Investors. Attwells’ Auction Team are ready with a tailor-made service for the Investor to review auction packs at short notice and identify the pitfalls.
Experienced Property Investors may also identify “difficult” properties which can be lower in price because of legal issues that may need to be resolved. A flat may be unmortgeable because of the short nature of the lease term. A Property Investor will purchase with cash and then add value by agreeing a lease extension. Attwells Lease Extensions Team along with their valuer contacts can help here. Sometimes a property may be subject to a secure tenant requiring expert landlord and tenant advice about how possession can be recovered. The Attwells’ Landlord and Tenant Team can help here. On other occasions disputes with a neighbour or land that is not registered may mean that a Property Investor needs on the Attwell’s Property Disputes Team to look at the different options available.
Investors may own a number of properties in a Block but there investment is being impacted by poor management of the Block. Alternatively, Investors may have identified opportunities to develop the Block further if they own the freehold or at least to prevent the investment being eroded through the requirement to pay ground rent or lease extension premiums. Here the Collective Enfranchisement or Right to Manage Team at Attwells can help.
Having secured an Investment Property a Property Investor will be looking to perhaps extract equity from the property in the future and to reduce or fix any interest costs by refinancing the property. Attwells Property Finance Team specialise in undertaking this work quickly and cost effectively. Where Attwells are not acting for the Property Investor they will often get asked to provide Independent Legal Advice and have a fast, responsive and fixed fee service for this urgent advice.
After purchase if the income stream stops because the tenant stops paying then a Property Investor needs expert at recovering back possession as quickly as possible and suing for any rent arrears. Attwells’ Landlord and Tenant Team are focused upon getting vacant possession and have expertise for both residential and commercial recovery. Attwells provide this service to some of the largest independent Estate Agents landlords in the UK.
Tax is a key in Property Investment. Consideration needs to be given to Capital Gains Tax, Income Tax, Stamp Duty Land Tax and VAT. Attwells’ have a good overview and some of this expertise in-house. To the extent that they do not have partnered with expert accountants to support their clients. Every Property Investor must protect his investment by a Will.
Attwells service for Property Investors is about:
- Speed to secure a bargain
- Commerciality and securing the income
- Depth of know-how to help its clients extract greater value
- The certainty of fixed fees