UK Archives - Holborn Assets Cyprus

How Good Are Buy-to-Let Profits in 2019?

user — Fri, 17 May 2019 06:35:55 +0000

Buy-to-Let (BTL) investors in England and Wales make an average of £80,000 selling on their properties – before tax. And in London, the average pre-tax profit on a sold BTL property is a whopping quarter of a million (£248,120). That’s according to figures from top estate agents Hamptons International released this week. So who said Buy-to-Let was bust? The UK BTL sector attracted 36% less new mortgages in 2017 than it did in 2015 – when new landlord mortgages stood at 117.5k. Potential landlords have been put off the BTL sector in the UK because, over recent years, it has been hit by government tax raids. Stamp Duty for landlords was beefed up by 3% in 2016. Lending laws have stiffened up. And most crippling of all has been the change to mortgage tax relief: Consumer watchdogs Which? explain that, if you are a UK landlord, “by April 2020, you won’t be able to deduct any of your mortgage expenses from rental income to reduce your tax bill. Instead, you’ll receive a tax-credit, based on 20% of your mortgage interest payments.” But the new statistics from Hamptons International point to an enduring strength of the BTL – and that is, as Holborn suggested back in January this year, that “one of the key advantages of BTL is exposure to the underlying value of the property asset.” Thisismoney.co.uk confirms that, “while a crackdown on tax relief and higher investment costs may have taken their toll on landlords’ appetite to invest today, rapid house price growth over the past 10 years has left long-term landlords with properties worth far more today than when they bought them.”

Average BTL profit before tax on property sold – by region:

Region Average gain 2018 London £248,120 South East £108,220 East £88,410 South West £62,540 West Midlands £39,970 East Midlands £39.090 Wales £32,410 North West £30,160 Yorks & Humber £26,870 North East £11,810 Source: Hamptons International, 2019 Regional variation rules the UK property market – as ever! The biggest average pre-tax profit recorded was in the London borough of Kensington and Chelsea: £1,072,800. That’s almost a hundred times more profit than that recorded for BTL sales in the North East of England.

Too late to cash in on BTL?

There’s almost 60,000 new BTL mortgages projected to go through in the UK over 2019. So the market can’t be that dismal. But it is certainly true that BTL activity is under pressure. A quarter of private landlords in the UK are looking to sell at least one property this year, according to figures from the prestigious Royal Institution of Chartered Surveyors. Aneisha Beveridge, Head of Research at Hamptons International, observes that, “more investors are shifting their focus from capital gains to yields.” Rental growth was up to 2% in April 2019, with a 3.9% increase year-on-year for London rents.

Busting BTL!

The UK BTL market has always offered powerful options to expat investors. You can easily arrange a BTL mortgage for the UK using our very own Holborn Mortgages Team based in our head office in Dubai. We have years of experience in trans-national mortgage arrangement. And our hallmark is ensuring that all the paperwork is checked and perfect before it even gets to a potential lender; this prevents nasty surprises for our clients!

The post How Good Are Buy-to-Let Profits in 2019? appeared first on Holborn Assets Cyprus.

How Will Brexit Affect The Pound?

user — Wed, 30 Jan 2019 14:15:19 +0000

Theresa May is expected to continue talks with EU leaders in the coming days, after MPs backed a new proposal for her to renegotiate her Brexit deal. So where does the pound stand so far amidst Brexit?

January has been noticeably dominated by the Brexit proceedings, following a couple of parliamentary votes and prime minister Theresa May surviving a vote of no-confidence. This saw sterling surging to 11 week highs against the dollar! Pound pricing has certainly been interesting, as it has mostly failed to be deterred amid the various worst case scenarios which have been popularly publicised over the past month. Since the referendum in June 2016, holidays and imported goods have become more expensive, but UK exports have been cheaper. Britons living abroad who are drawing on their UK pension have certainly suffered as the pound has declined. With further volatility to be expected, we have to understand why the pound moves. Since 1992, the pound has floated freely on currency markets, meaning that traders – buyers and sellers – now determine what it’s worth. When the pound rises in value, more of the currency is being bought. When it goes down, more is sold. It’s important to remember that there are factors other than political events which affect its value. These include inflation, or the cost of living, which held steady at 2.4% in October. When inflation falls, this eases pressure on the Bank of England to raise interest rates. When interest rates are low, this can deter foreign investors from pumping money into the UK as it will earn less interest. This can also reduce the pound’s relative value. After the global financial crisis in 2008, countries whose economies suffered had weaker currencies. In recent years, traders have been looking much more at politics, rather than economic data, which means much faster trading and therefore a faster pace of change in price. That’s the volatility traders talk about. Pound performance since January 2007 Exchange rate with US dollar The two sharp declines in the pound can be seen clearly here in the 2008 financial crisis and in the aftermath of the 2016 referendum. Pound performance since Referendum in June 2016 Exchange rate with US dollar

Why does it react to the chance of a softer Brexit?

Any talk of putting Brexit on hold has boosted the pound, as it gives business some more room to put plans in place. A softer Brexit could be also good news for savers. Currency experts such as Canadian Imperial Bank of Commerce’s head of foreign exchange strategy, Jeremy Stretch, think that a softer Brexit could provide a boost to the economy by providing an element of confidence and certainty to companies and consumers who, in turn, may decide to spend more or take on more staff. That increased economic activity could then prompt the Bank of England to raise interest rates, boosting returns for savers.

So what’s better for the exchange rate? Deal or no deal?

As we’ve discussed, lots of different factors are at play, and they all feed into interest rates. However, Brexit is key to the current weakness of the pound. The morning after the referendum in 2016, the pound was down by more than 10% against the dollar and more than 7% against the euro – and it’s never recovered. In the event of a no-deal Brexit it’s likely that the pound will weaken because the financial markets don’t like uncertainty. We’ve already seen that with the slump in December after Theresa May postponed the parliamentary vote on her Brexit deal.

Some final thoughts:

Following the UK parliament’s vote within the last week, it would prove tactless to build a view on sterling assets unless, and until, we have a clear path forward on the next steps as determined by Theresa May. Even if there is a deal, the pound-euro exchange rate is likely to fluctuate for months and years to come. All the experts agree that it’s impossible to predict how exchange rates will behave in the coming weeks or months. Although the pound is weak at the moment, the more clarity there is over any deal, the more likely it is that it will rise in the near future. However, with so many hurdles ahead it’s impossible to predict how sterling will react. Hussein Sayed, Chief Market Strategist at FXTM, said “As of now, investors seem to be on wait-and-see mode.” So how can you get the best exchange rate? Talk to Holborn! We can offer great rates and expert guidance to help you make the most of your money abroad. If you’re transferring a significant sum to buy property overseas, using us could save you thousands. We can provide access to tools that help you manage the risk of a fluctuating currency market.

Are there any currencies the pound still strong against?

Yes! Post Office Money says sterling is stronger than a year ago against 25 percent of its 40 bestselling currencies, including the Turkish lira, Icelandic Krona, Brazilian real, Russian ruble and South African rand.

The post How Will Brexit Affect The Pound? appeared first on Holborn Assets Cyprus.

Your UK Passport – Important 2018 Update

user — Thu, 27 Sep 2018 13:08:39 +0000

Rules affecting your UK passport changed – October 2018

A change affecting the renewal of UK passports was introduced on September 10^th, but not formally announced by the Home Office. Until now, travellers renewing their British passport would have any remaining time on their old passport added to their new one – meaning that if you had six months remaining when you applied for your passport, your new one would have 10 years and 6 months. As many countries require at least six months before the expiration of your passport for valid travel, millions of Brits – it is reported – are set to be short-changed by the new system, which essentially adds up to a 5% increase in price.

You need 6 months remaining on your passport for entry to some countries

There are many countries worldwide that require you to have at least 6 months left on you passport at the time of travel – if you don’t, you may be denied entry. These countries include: UAE, Sri Lanka, St Lucia, Thailand, China, Russia, Indonesia, and Turkey. This is by no means an exhaustive list and you should consult with the government website to check your intended country of travel.

This list is set to change after Brexit …

What Brits may not be aware of is that the list of countries you need 6 months on your passport to travel to looks set to change after Brexit. After Brexit, you may be denied entry to certain EU countries if you do not have 6 months before the expiry of your passport. The UK Government has said that travellers looking to travel to the Schengen area (including Austria, France, Germany, Netherlands, Portugal, Spain, Switzerland, Poland, Norway, Italy and Sweden) after 29^th March 2019 should ensure their passports have more than six months validity. This is worth keeping an eye on – especially if you travel with children, who have a five year expiry on their UK passports until the age of 16.

Your UK passport will change appearance after Brexit

Papers released by the Government after Teresa May chaired a meeting with the cabinet to discuss how a no-deal Brexit outcome could be handled have revealed a number of changes for UK travellers. As Britain prepares to depart from the EU, the transition will be signified visually in the British passport. Britons look set to be issued with the old style blue passports following Brexit in 2019, replacing the burgundy style Brits currently receive. Passports issued after March 2019 will not include the words “European Union” either. Brits should also be aware that a no Brexit deal could also have a significant impact on their ability to drive vehicles on the continent. The papers revealed that British drivers may no longer be able to use their UK driving licence in the EU, meaning that British motorists would need to obtain an international driving permit to drive through France, for example.

A UK Passport is one of the most “powerful” passports

A UK passport was rated the 8^th most powerful passport in a 2017 study by Henley and Partners, a citizenship and planning firm, which looked at the number of countries that can be visited without a visa. Britons can visit 173 countries without a visa, but the top spot goes to German passport holders, who can visit 176 out of a possible 218. Also ranked ahead of the UK were Spain, Italy, Finland and the US. Syrians have the least powerful passport with visa-free access to fewer than 30 countries.

Despite a price increase, the UK is not the world’s most expensive passport!

The cost of a UK postal passport application rose by 17% six months ago, from £72.50 to £85. Despite the hefty price hike, a UK passport is still nearly half the cost of an Australian passport, at £157! A Syrian passport would set you back even more – at a whopping £287!!

The first passport ever was British

King Henry V, victor at the Battle of Agincourt and British monarch immortalised by Shakespeare, was also a savvy traveller. He first introduced the concept of the passport in the fifteenth century to help his citizens prove their identity when travelling outside of the country. British passports today are still issued in the name of Her Majesty the Queen.

And the coolest passport goes to …

Norway! Norwegians’ passports are issued in one of three colours (red, white or turquoise) and if you shine an ultraviolet light on to its pages, the Northern Lights will appear as luminescent trails across the pages – a more comfortable way of seeing them, perhaps, than a trip to Tromsø!

The post Your UK Passport – Important 2018 Update appeared first on Holborn Assets Cyprus.

UK Archives - Holborn Assets Cyprus

How Good Are Buy-to-Let Profits in 2019?

Average BTL profit before tax on property sold – by region:

Too late to cash in on BTL?

Busting BTL!

How Will Brexit Affect The Pound?

Theresa May is expected to continue talks with EU leaders in the coming days, after MPs backed a new proposal for her to renegotiate her Brexit deal. So where does the pound stand so far amidst Brexit?

Why does it react to the chance of a softer Brexit?

So what’s better for the exchange rate? Deal or no deal?

Some final thoughts:

Are there any currencies the pound still strong against?

Your UK Passport – Important 2018 Update

Rules affecting your UK passport changed – October 2018

You need 6 months remaining on your passport for entry to some countries

This list is set to change after Brexit …

Your UK passport will change appearance after Brexit

A UK Passport is one of the most “powerful” passports

Despite a price increase, the UK is not the world’s most expensive passport!

The first passport ever was British

And the coolest passport goes to …