Landlords, investors, we have some exciting news for you! We have just launched a new service, Portico Portfolio. This service will allow landlords to invest smartly in high yield properties in a tax-efficient company structure.
We'll use our lettings expertise to benefit you. We will create and manage bespoke northern-based property portfolios for clients, which will be specifically designed to achieve high yields.
Read on! and email email@example.com for further details.
So, why North?
Our Yield Map shows that long-let rental yields in London range from 1.5% - 6.7%. The lowest rental yield of 1.5% can be found on prestigious Old Bond Street in Mayfair, whereas landlords can find the highest yield near the Sewage Works on Yarnton Way, in between Abbey Wood and Belvedere in the south east borough of Bexley.
Compared to London, long-let rental yields up north are staggeringly higher. Our recent research shows that the average long-let rental yield in Liverpool is 8.3%, with the highest yield long-let rental yield in the city standing at an impressive 13.6%. In Manchester, the average long-let rental yield is 6.5% and the highest long-let rental yield is 7.6%.
Liverpool and Manchester’s tourism markets are also booming. There are many new developments with serviced apartment planning status also which open up the opportunity for short let management. These can provide even higher yields, managed through Portico Host.
But it’s not just high yields that Liverpool and Manchester landlords can benefit from. Despite property price growth in London plateauing, forecasts show that the north-west and its key cities boast the strongest levels of capital appreciation in the UK over the next five years.
Looking at Land Registry data we found that the average property price in Liverpool has increased by 19.34% over the last 5 years, growing from £108,267 in June 2013, to £129,562 in June 2018. In Manchester, the average property price has actually increased by a huge 47.76%, jumping from an average of £119,951 in June 2013, to £177,243 in June 2018.
It is likely therefore that the north west will see property price increases of at least 21.6% over the next five years as reports indicate.
Sold on the North? So are we! Read on to find out more about the Portico Portfolio.
How will the Portico Portfolio work for you?
The process is simple: let us know your investment budget, then our partner, Accounts and Legal, will set up a special purpose limited company to act as the investment vehicle with the client as the 100% shareholder.
As the properties will be owned within a company structure, interest is tax deductible and income can be taken as dividends or retained in the company for a later tax-efficient exit. Portico Finance can help to arrange commercial financing, (typically 50% LTV), so £500k equity will allow a client to purchase a portfolio of approximately £1m*.
The Portico Portfolio team will then source strategically chosen properties in city centre locations in Liverpool and Manchester. Better still, Portico Portfolio will also manage the process from sourcing a property to exchange, including sourcing finance, survey, conveyancing along with expert tax advice from partnering Accountancy firm, Accounts & Legal.
Once a property/properties are secured, we will manage the property with Portico Lettings, or Portico Host services where applicable; the client is then charged at the end of the month.
Clients are also free to buy or sell properties whenever they like within the company, or can sell or transfer the shares in the company to someone else at any time.
Already got a property that is ready to be managed? Find out about our host packages here or if you would like to have a chat give us a call on 0207 099 4000.!!!!!!!!!
If you don't have a property of your own for Portico Host, why not take advantage of our refer a friend offer. Just send us their details and once we have secured them their first booking you will receive a £150 John Lewis Voucher.
Please contact 0207 099 4000 or !!!!!!!!!firstname.lastname@example.org to learn more about Portico Portfolio. We have properties available exclusively through Portico Portfolio, but can also source from the open market.
*The actual rate available will depend upon your circumstances. Ask the Portico Portfolio team for a personalised illustration.