As a nation, we have long loved the traditional terraced house since they were first constructed all the way back in the 17th Century. From the elegant streets of Georgian terraces to the Victorian row upon row of terraces, this type of property has dominated the streets of the UK for over 400 years.
It isn’t surprising that terraces have been a popular style of property for existing and potential landlords to invest in. Compared to semi-detached and detached homes, terraced properties tend to be more affordable and available, and have long been considered as a good starting point for BTL property investors.
It would be unusual to actually find a landlord without at least one terraced property in their portfolio, however, moving forward, this may change due to the new EPC regulations that are expected to come into effect in the future. The government’s zero-emission target means that they are aiming for all residential properties to achieve at least a C rating by the year 2035, for new private rental properties by 2025, and all tenancies by 2028.
Although still three years away, the 2025 deadline has forced landlords to rethink their position. With most terraced properties being relatively old, the cost of fixing and upgrading to meet the new requirements may stop new investors and lead to current BTL landlords reducing the size of their portfolio or selling up completely. This in turn may lead to some great investment opportunities for those willing and able to make the needed improvements.
Typically, buy-to-let investors find it somewhat difficult to secure funds to renovate their property before it has been let out. This is where bridging finance could provide the perfect solution for landlords.
Bridging finance is short-term and flexible making it an ideal fundraising solution when going to auction. This type of bridging loan can be arranged in a relatively short space of time, usually days, as opposed to weeks (or months) needed for other mortgage and loan products. Time is imperative when wanting to find a deal at auction as most auction houses expect at least a 10% deposit on the day of the auction should you be successful. The balance payment is typically expected to be paid within 28 days making bridging finance a perfect solution due to the speed at which the funds can be accessed.
Many investors will want to convert to a Buy-to-Let mortgage once all the renovations have been completed. The bridging finance lender will have the surety of the long-term mortgage, provided the valuation of the property after refurbishment meets expectations.
The buy to let market has seen many transitions over the last few years and the Clean Growth Strategy, set out by the government, is predicted to result in even more changes in the rental market. However, with change comes the opportunity for those willing to adapt to the new environment, and bridging finance is there to help those investors to realise their BTL dreams.
Craig Upton supports UK businesses by increasing sales growth using various revenue streams online. Creating strategic partnerships and keen focus to detail, Craig equips websites with the right tools to increase traffic. Craig is also the CEO of iCONQUER, a UK based SEO Firm and has been working in the digital marketing arena for over a decade. A trusted SEO consultant and trainer, Craig has worked with British brands such as FT.com, DJKit, UK Property Finance, Serimax and also supported UK doctors, solicitors, builders, jewellers, to mention a few, gain more exposure online. Craig has gained a wealth of knowledge within the digital marketing space and is committed to creating new opportunities working with UK companies.