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Expat Looking to have 2 Residential Properties/ 2 Retail Properties

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cm777

New Member
Hi, I'm a UK expat in Asia looking to have a small portfolio of 2 residential rental properties / 2 retail rental properties...

I understand that commercial properties currently get and will continue to get full mortgage interest relief..... Is it more tax efficient to buy 2 shop units cash, then try to get mortgages on them to buy 1 residential property ? Will I have issues getting commercial mortgages with no residency in the UK ?
Do they look at purely rental income or is offshore employment income a factor also ?

Another thing is, I have read that with shop units...you will get less money released on each unit vs a flat etc, the mortgage period will be shorter vs a flat, and interest higher on commercial mortgages. I'm aiming to buy one of the residential properties outright - with money released from the 2 shops....the other residential property being gifted to me.

I also have no income in UK as yet, so maybe better to utilise my 11k+ tax-free allowance. Though, I am aware of risks of owning rental retail units as an individual vs a company....being sued by tenants.
 
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diyhelp

Active Member
The UK government is highly unlikely to change the laws on interest relief for companies as they have done for buy to let personal investments. I think you will have a problem as you don’t have a UK income which is now part of the mortgage approval procedure. I have never really followed the commercial property market and I’m not sure about the shorter mortgages on retail assets. However, in the longer term I believe the UK still offers significant potential for capital growth for residential properties.

The retail side; online business is now killing the high street and while there may be some bargains you can convert into flats, it is a risky game.
 
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cm777

New Member
Edit : OK, I see what you mean.

Yes, commercial is risky in all but the sectors that online cannot provide...haircuts etc
 
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realdeals

Active Member
Betting shops, hairdressers, food shops and charity shops seem to be the norm on UK high streets just now. I have just heard that HMV has gone bust for the second time in 6 years. Ecommerce is biting hard!
 
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