Top tips on where to look for financial help to get a head in property
Posted by tungstenmg Last updated 5th May 2021 reading time
Do you need financial help to help your property journey?
There is a lot of financial help that you maybe eligible for in the form of grants, loans and tax breaks. I read Richard Browns article on these financial options and I wanted to give you a brief overview as I found it very interesting, but for a more detailed insight please read his book Property Investor Toolkit.
There are 268,385 long term empty homes in England (that is a 1/4 of all homes), NRLA
What grants are available to you?
There are a huge number of grants potentially available to you and all you need to know is where to look.
EMPTY HOMES GRANT
This grant is dealt with by local councils and the idea is to bring empty properties back to the market for renters or buyers. The main reason is to get those that are in need of housing a home of their own ,as empty properties has a negative impact on the community. Such as the house can look neglected, pests can move in, criminal damage/squatters and it is a huge cost to hold people in emergency housing. In 2018 Exclusive Inside Housing research showed that English councils spent £937 million on temporary accommodation for homeless households.
A typical grant can be for £10-15,000 and 50% of the total renovation work.
GREEN HOMES GRANT
This scheme focuses on making your home more energy efficient and greener, which will help the UK Government met its new target to slash emissions by 78% by 2035. The grant is a national scheme and you can get 2/3 of work cost covered up to £5000. The energy companies also have to fund some energy improvements for those on benefits via the Energy Company Obligation.
There are a number of loans you can look at from Help to Buy Equity Loan’s and Shared Ownership which can make new build developments an option for those with low deposits. Plus the introduction of the 95% LTV mortgage from March 2021 will further help those with a small deposit.
Most readers would have heard about the Government Bounce Back Loans which has very good terms (if used correctly) and companies could apply for up to £50 000, plus the Building Fund Loan can offer 80% of the cost to a development project.
As you can see there are many options available but please ensure you get independent financial advice as many have criteria you must adhere to or you could be in a very sticky situation.
UK new target in law is to slash carbon emissions by 78% by 2035. gov.uk
What tax reliefs are there for those in property?
I have found that having a property specific accountant is vital to your power team as they will be able to give you specific advice on what relief you are eligible for. But as a starting point have you looked at
Principal Residental Relief which allows you to pay no capital gains tax on the same if your home or any income if you rent it out for a short period. For the later relief you can get up to £7500 tax-free rental income.
As a landlord most costs are tax deductible and as business partner you can share rental income unequally to juggle the amount of tax one partner pays compared to another – and the asme applies to married couples.
Remember there are ways to save on SDLT and pension contributions can be tax deductible, plus if you sell the business you can get Business Asset Disposal relief.
This area is very complicated and is why I use Perrys Accountants who are property accountant specialises.