Furthermore, the costs of becoming a landlord are ever-growing in the United Kingdom. Arrangement, valuation and legal fees should all be expected when making a buy-to-let purchase.
However, the most heart-wrenching cost for aspiring landlords to bare is Stamp Duty Land Tax (SDLT). SDLT is correlated with the purchase price of your property.
For buy-to-let and second home purchases, higher tax bands apply.
Different tax bands apply to properties in each price range. See the table below for full details:
Buy-to-let/second home rate (April 2016)
Up to £125,000
£125,001 – £250,000
£250,001 – £925,000
£925,001 – £1.5m
Despite the drawbacks of purchasing a buy-to-let in the short-term, the long-term prospect of equity growth and passive rental income is still enticing new landlords to enter the market.
For a free consultation with one of our advisers, click the ‘Contact Us‘ button and submit an enquiry form.
Authorised and regulated by the Financial Conduct Authority. No: 301141
Privacy & Cookies Policy
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.