Off Market Property Sales

Profession Property Investors rarely purchase properties on the open market.

They prefer to avoid getting into bidding wars and are looking for quick hassle free transactions and above all are looking to Save Money. These properties are usually sold below the market value. Smart investors can often take their deposit out of the property within a few weeks, releasing funds to allow them to make their next purchase.

It is not only property investors that can benefit from Off Market property deals. First time buyers and those on a tight budget that are unable to pay above the valuation can benefit from this type of sale.

Sellers that chose the Off Market route to market do so for a variety of reasons. It could be change in family circumstance, the need to release money quickly or from people that cannot afford estate agency costs. Other properties are from landlords and some from bank repossessions.

Contact me if you would like more information on Off Market property sales.

How Transferring Properties Into A Limited Company May Help Reduce My Tax

With the governments planned Restriction on Finance Cost Relief for Individual Landlords – many property owners are considering moving some- or all of their portfolio into a Limited Company. As a limited company, the property owner would then be able to deduct the entire finance cost as business expense. If the landlord considers themselves to be running a property business- in other words spending more than 20 hours a week running the business (or employing someone else to run the business)- they can transfer the properties across by simply by converting the business to company status.


When converting a business to company status Section 162 Incorporation may allow you to avoid the requirement to pay Capital Gains Tax. When the new business is set up any equity in the properties transferred across becomes shares in the new company and can be offset against any capital gain. As long as the equity in the properties exceeds any capital gain there should be no Capital Gains Tax payable.


In addition Land and Property Transaction Tax (LPTT) can also be reduced or even avoided if the properties are transferred from a partnership (e.g. husband & wife) into a Limited Company.

HMRC Restricting Finance Cost Relief For Individual Landlords- How Prepared Are You?

From April 2017 the government will restrict the amount of Income Tax relief landlords can get on residential property finance costs to the basic rate of tax. The government will introduce this change gradually from April 2017 over 4 years.

This means that in the next 4 years landlords that are currently paying higher rate tax will lose 50% of the tax relief they currently receive on their mortgage interest payments.

By the method of calculation that HMRC are planning to uses it will also mean that many landlords will become higher rate tax payers and lose a proportion of the relief they currently obtain.

In addition the government have created a new Land and Property Transaction Tax (LPTT) of 3% for individuals purchasing an additional residential property.

If landlords do nothing many of them will receive ever increasing tax bills over the next four years.

Eg- a higher rate tax payer with one rental property receiving £800 rent and monthly mortgage interest payments of £400 will be taxed an extra £960 per year. That figure is multiplied by the number of properties they own.

Landlords who have high mortgage balances in relation to their property values will be proportionately worst hit. Some will end up being taxed more than their net profit.

To avoid this many landlords are planning to

1) Sell some or all of their properties. This requires carefully planning to avoid high capital gains charges.

2) Transfer their portfolio into a limited company. If done properly this could potentially reduce the landlord’s tax liability considerably. There are many routes that can be used that would help the landlord to avoid Land and Property Transaction Tax on the transfer and avoid paying high levels of tax on the rents received thereafter.

Off Market Properties

Some of the best bargains in the property market are found ‘Off Market’. These are properties that the owner wishes to sell but has chosen not to go down the traditional route of using an estate agent or solicitor. There are a number of reasons why an owner may wish to sell off market but usually it is because they require a quick sale and do not wish to go to the time and expense of getting a home report, arranging viewings etc. At Spyder Properties we are offered a number of Off Market properties every month. This week we have been offered the following, which look particularly interesting.
A portfolio of 10 one and two bedroom rental properties in the Scottish Borders. Good discount on market price as well as good yield.
One bedroom flat in Leith, currently tenanted with a substantial saving over market value.
If you are interested in these- or receiving more information on Off Market properties please contact us.

Land and Buildings Transaction Tax (LBTT) Scotland- Buy To Let


In his December announcement the Scottish Finance Secretary added an additional 3% Land and Buildings Transaction Tax on all second residential property transactions over £40,000 from April 2016.

This means that any Buy To Let property that completes after 1st April will be liable for this tax on top of any other LBTT tax that is due.

This does however give 2 ½ months to increase your portfolio and avoid the new tax. With interest rates on Buy To Let Mortgages currently as low as 2% (typically around 2.5%) buy a rental property is unlikely to be as affordable in the foreseeable future.

Off Market Properties

Spyder Properties has been offered a number of flats that would make ideal rental properties. They are all situated in Edinburgh and Leith and priced between £115,000 and £300,000. The owners are looking for quick sales. If you are looking to expand your portfolio and would like further details please contact

Scotland – Stamp Duty Loser

The New Stamp Duty Bandings that will take effect from midnight will reduce the duty payable for most home purchases up to £937,500.  The bandings are very similar to those that will be introduced in Scotland next April, however for properties selling between £250,000 to £925,000 the marginal rate of duty payable will be double.

How the systems compare

Price Band                                    UK Stamp Duty from December 2014                       Scottish Land & Building Tax April 2015

0-£125,000                                   0%                                                                                     0%

£125,001- £135,000                   0%                                                                                     0%

£135,001-£250,000                    2%                                                                                    2%

£250,001-£925,000                   5%                                                                                    10%

£925,000- £1m                            10%                                                                                  10%

£1m-£1.5m                                    10%                                                                                  12%

£1.5m +                                         12%                                                                                   12%

This means that from April 2015 anyone purchasing a new home in Scotland below £250,000 will be £200 better off- however anyone buying above this level will become considerably worse off as the price rises. From April 2015 a property purchased in Scotland  for £925,000 will cost the buyer a whopping £33,500 more than the equivalent property south of the border.



Property Tax Changes

The Scottish Government has announced plans to change the rates of Property Purchase Tax from next April.

This will mean that there will be no tax on properties selling for less that £135,000.

For properties selling for between £135,000 and £250,000 a marginal rate of 2% will apply (ie only to the proportion above £135,000).

For properties of £250,000 to £1m a marginal rate of 10% will apply.

Properties selling for over £1m will attract a marginal rate of 12%.

This amendment to the property tax raises several questions.

1)       Is it fair?

2)       Is it too complex?

3)       What effect will it have on the property market in the months before it takes force?

4)       What effect will it have on the property market after it takes force?

5)       Will it heat up or cool down the Scottish property market?

Off Market Properties

Spyder Properties has been offered a large number of Off Market residential properties that will be available over the coming months. These will include tenanted rental properties, HMOs, bank repossessions and properties that require refurbishment.

The properties are mainly located in East/Central Scotland and will be available below market value.

If you are in the market to purchase properties to expand your portfolio or for refurbishment and would like details of these properties let us know.



Maximise Your Portfolio

Portfolio Landlords. Are you looking to release additional funds for additional purchases or to reduce your mortgage payments. Contact us for a free Landlords’ Portfolio Review.

0131 668 4616