We Buy Property Portfolios

Property Portfolio Buyer

Experts in maximising the potential of your property portfolio

Being a landlord can be tough.  There are many reasons why you might think “I want to sell my property portfolio”.

Landlords face more work than ever, with increased regulations in both the letting of property and the managing of tenants.  Damage to property, sitting tenants and rental arrears are a reality you may no longer wish to manage.

We have helped landlords 

  • considering retirement or in need of a change of direction

  • concerned about Section 24 tax changes and new Universal Credit payments

  • with challenging portfolios including fatigued properties, sitting tenants or outstanding loans

  • seeking to maximise their Capital Gains Tax allowance    

  • simply fed up with ever increasing HMO licensing laws.

Whatever your motivation for wanting to sell your property portfolio we can help you to find the best solution for your individual circumstances.

There are a number of options available for selling your buy to let property portfolio, but not all are equal. 
We will help you to clarify the best option for you by

  • quickly and efficiently purchasing your property portfolio – whatever the size 

  • identifying the best way to minimise your tax liability 

  • offering you the optimum price for your buy to let investments 

  • being open, honest and transparent in everything we do, explaining your options and whether or not our services are the best option for you right now?

Property Portfolio Buyer works with an experienced network of business partners to maximise the profits from the sale of property portfolios.  We deal with a wide range of portfolios, comprising anything from 2 to 200 properties.  

It goes without saying that we offer a personalised, discreet and confidential service at all times.  

Get in touch now to discuss

Being a landlord can be tough. There are many reasons why you might be thinking I want to sell my property portfolio.

We have helped landlords facing concerns like yours

Click here to Learn More about ways to sell a property portfolio

  • Section 24 tax changes and new Universal Credit payments
  • Ever changing HMO licensing Laws
  • Fatigued properties
  • Sitting tenants
  • Outstanding loans
  • Facing retirement
  • Looking for a change of career
  • Seeking to maximise Capital Gains Tax Allowance

Whatever your motivation, we can help you to find the perfect solution for your circumstances.

We can buy property companies, irrespective of asset condition, service your existing debt and release your equity in the most tax efficient way.

Selling a property company for the best price can be challenging (please ask to see our Special Report)    We recently bought a property company which had been on the market for five years! The eight units were in good condition, the location was popular and the rental income stable. The owner had a particular price in mind, which we felt was fair. We were able to agree terms that worked for all of us. Once our due diligence was complete, we exchanged contracts in two weeks. The owner was delighted that cash was released from the company so efficiently.

The end result was that the directors retained over £70,000 more than they would have with a traditional sale. They also benefitted from the freedom to focus on other more important things.

HOW CAN WE HELP YOU SELL YOUR PROPERTY PORTFOLIO?

There are a number of options available for selling your buy to let property portfolio, but not all are equal.  We will help you to clarify the best option for you.  Here’s how we can help, we will

 

  • quickly and efficiently purchase your property portfolio – whatever the size

  • identify the best way to minimise your tax liability

  • offer you the optimum price for your buy to let investments

  • be open, honest and transparent in everything we do.  We will explain the options available to you and whether or not our services are the best option for you right now?

    Find out more information if you are thinking ‘how can I sell my property portfolio?’

 

How We Can help You

A better way to sell... There are many ways we can work together to structure
a deal to get you the best outcome. Each deal is unique and we pride ourselves on working with landlords to achieve a win-win solution

We can buy suitable property portfolios, quickly, for cash. Although the speed of a sale does come at a cost, we will only buy quickly for cash if a reasonable discount works for you.

Portfolio House door

Under this arrangement we can pay you more.  The share sale can be immediate, in a single transaction, or over an agreed period of time.  In either case, we will ultimately buy 100% of the shares in your company, often with your equity out on day one.  This can be put in place quickly and we never charge fees. 

Brick townhouse

We will advise you on the best structure for disposing of your portfolio AND develop a clear plan for lower risk and greater profit.  Property Portfolio Buyer may be able to offer full market value and help to mitigate Capital Gains Tax.

If you are thinking of selling, request our ‘Special Report’

Section 24

What you need to know​

Commencing 6 April 2017, a residential landlord with a personal rental property, will be unable to deduct any financial costs, ie. interest on the buy to let mortgage and any other associated mortgage loans and fees when working out taxable profit.  

As a result, there will only be a basic rate reduction in these costs from your income tax liability. This has a considerable impact on potential revenue.  The basic rate income landlord must now assess whether the changes might push them into the higher rate tax bracket.  

Is it more beneficial to hold my property portfolio in a Limited Company?

The ‘penalty’ of Section 24 won’t apply if you own your property portfolio within a limited company.  Corporation tax will be paid instead of income tax.
This might work well for a higher (40%) rate income tax-payer but not necessarily for an additional (45%) rate tax-paying landlord.
Furthermore, you cannot simply move your current portfolio into a limited company.  Stamp duty and Capital Gains Tax will apply, along with other costs.

How Section 24 works

Below is a simplistic ‘before’ and ‘after’ example for a higher (40%) rate income tax paying landlord who personally owns a property valued at £250,000 with a buy to let mortgage of £187,500 (75% LTV), receiving rent of £1,200 pcm.


That equates to over a 38% drop in profit!

NOTE: this is a very basic example – only relating to the mortgage interest. It does not include any other income that you may have earned or any other costs that you might have incurred.

What can landlords do to ease the situation?

You may have been told that landlords owning their portfolio of rental properties through a limited company is a more tax-efficient option.  They pay corporation tax instead of personal tax and so Section 24 does not apply.

Could this be a better choice? Compare how the higher tax rate paying landlord, as above, might have less tax to pay if they owned the property in a limited company.

It might be worth the landlord making improvements to properties if they are a bit tired. Draught proofing sash windows is quite a cost effective way to get them working well and reducing cold draughts

 

A Limited Company shows an improved outcome when comparing before and after.

BEFORE: In tax year 2016/17, the landlord makes £1,567.20 more net profit than if he were paying income tax.

AFTER: In tax year 2020/21, the landlord makes £3,172.12 more net profit than if he were paying income tax.

The example above relates to a higher rate (40%) income tax paying landlord. Additional rate (45%) income tax paying landlords may discover that they are even worse off. Also, be careful if you are a basic rate tax paying landlord. You might find that the taxable income calculation pushes you into a higher tax bracket.

Can I transfer my property portfolio into a SPV limited company?

Yes it is possible, but comes with some serious challenges. The properties have to be sold at market value and will attract additional costs.

Stamp Duty

3% will be payable on the purchase by the limited company.

Capital Gains Tax

Capital Gains Tax is personally due when the property is sold

Early Repayment Charges

ERCs may be applicable on your existing buy to let mortgage

Corporation Tax 

payable both on rental income and the property sale

Finance Charges

will be sustained by the limited company when taking out a new buy to let mortgage.

Profit Extraction

in a company, the rental income (after corporation tax is paid) would belong to the company. The shareholder would need to extract it ‘out’ of the company, if required, for personal use.  This would normally be achieved by way of a ‘dividend’. As of 6 April 2018, the first £2,000 of dividends are tax-free, with anything above this amount liable to income tax at 7.5%, 32.5% or 38.1%.

It is essential to take ​qualified legal and financial advice when considering any such option.  

Need help with selling your portfolio? We are experts!