The buy2let store reviews investing in residential property as one of the best sources of regular income. Many people prefer to invest in the UK buy-to-let property market rather than risk their money investing in the stock market.

This move usually pays off for buyers as they make a certain amount of money/income on a monthly basis. But the amount of money you receive is limited and very small. Therefore, you will most likely not like this fact. In such a situation, you would like to find a new way to turn your buy-to-let-for-sale property in London into a money-making machine.

In addition to this, being a buyer, you will also need to know the following points in detail:
• Best practices for landlords/investors to use their income to overcome new buy-to-let rules
• How homeowners can avoid the implications of the “Hidden Mansion Tax” likely to affect buy-to-let investors.
• The process of converting properties from purchase to rent to sale into vacation stays for short-term tourists.
• The possible consequences of the “Hidden Mansion Tax” and the conversion of the buy-to-let property into a short-term vacation rental.

Honestly, it will not be easy to cover these four points in one article. That’s why we’ve decided to launch a series of articles to help you turn your buy-to-let residential property into a source of income.

Let’s start with the discussion on the first point below:

Best practices for landlords/investors to use their income to get past the new buy-to-let rules?

Now the Bank of England has introduced strict rules on buy-to-let loans. Real estate investment agents in London are of the opinion that these rules are to help owners who own multiple properties. These new rules on buy-to-let loans will help such owners use their salary, investment income and pension income to obtain a mortgage to buy investment property in London.

All credit goes to the PRA (Prudential Regulation Authority) of the Bank of England. Landlords who own at least four or more buy-to-let properties will now be required to comply with these new rules. This process initiated by the Bank of England is known as Affordability Testing.
• Property investment agents in London strongly advise homeowners. Lenders or lending institutions to see how this test of affordability actually works.
• Private lenders and lending institutions will now have to take a closer look at the level of affordability of investors applying for a mortgage. Additionally, it will also be mandatory to evaluate in detail the interest coverage ratios.
• Some banks have started using a system called “top slicing”. This is good news for owners who are ready to buy high-value investment properties in London, which offer a low return. It is a good way for investors to use EPI (External Personal Income) to offset any shortfall.

Now here are some very important questions:
• Are the best slicing deals available everywhere in England/UK?
• Which lenders use Top Slicing when making their affordability calculations?
• How did private lenders or other lending institutions react to the changes in the PRA?
• What will be the buy-to-let criteria for owners?
• Will homeowners’ choice be reduced?
• Which lenders do not accept applications from portfolio lenders?