CAN PENSION CHANGES HELP PROPERTY BUSINESSES?

How can the April 2015 pension changes help your property business? Stockport based Fairhurst Estates Limited (FEL), a leading firm of Chartered Surveyors focussed on the North West and specialising in roadside properties, are looking to help property owners take full advantage of the pension changes in 2015.

John Thornley, managing director of FEL explains:

“From April 2015, those aged over 55 have a greater choice of how to take income or a lump sum from their defined pension scheme, including perhaps taking the full amount from the pension pot in one lump sum, which could be useful for those wanting to invest in property.

“However, there would be a tax trade off as only 25% can be taken tax free with funds taken beyond this amount taxed at your highest rate.”

So, how can this help my property business?

Paying off an outstanding mortgage, thereby saving interest which can be quite substantial in the longer term. Paying off part of a mortgage. This would have the effect of lowering your “loan to value ratio” and could unlock a better mortgage deal, again leading to lower interest costs. Refurbishing/extending/repairing your property, which could reduce costs in the longer term and drive up rents and, in the process, increase the property’s worth. Building your portfolio.

FEL’s Nigel Blyth adds:

“If electing to build your property portfolio, it is worth remembering that all management aspects can be delegated to good managing agents. Take good quality advice and look for companies who belong to official bodies, such as Chartered Surveyors who work to a Code of Conduct. Such companies will have good contacts across all professions and, in this way, will be able to provide a comprehensive service.”

For a no obligation confidential chat, please feel free to contact either:

John Thornley – john.thornley@fairhurst-estates.co.uk or

Nigel Blyth – nigel.blyth@fairhurst-estates.co.uk