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TODAY'S OTHER NEWS

Older BTL investors target property in London and South East

In recent years, cites within the north of England have attracted more property investors targeting high yields, but new research shows that London and the South East remains the most popular place to invest as far as buy-to-let investors aged 50-plus are concerned.

A fresh study from Commercial Trust shows that between 2015 and 2017, 38% of all completed buy-to-let acquisitions from those aged 50 and over were in the capital and neighbouring South East.

Averaged over the three years, the South East - 19.14% - attracted slightly more investment than London - 18.95% - for overall market share for this age demographic.

East Anglia proved the third most popular area for investment, attracting 12.2% of market share over the three-year period, closely followed by the South West at 11.07%.

A growing number of mortgage lenders are starting to cater for greater demand for property from people post-retirement,

From today, the Mortgage Works (TMW) has removed all upper age restrictions across its buy-to-let product range for experienced landlords.

The buy-to-let arm of Nationwide Building Society’s maximum lending age was 70. But having decided that cases from older borrowers who have long invested in the BTL sector offer no more risk than younger ones, TMW scrapped the maximum age restriction for those older borrowers who qualify this morning.

There is now no maximum age at application nor at redemption for experienced landlords looking to borrow up to 65% loan-to-value (LTV) for either purchase and remortgage.

The same criteria also applies to limited company mortgages currently being offered by TMW.

Paul Wootton, TMW’s director of specialist lending, commented: “The group of experienced landlords is both growing and growing older, and market options are more limited for retirees seeking to retain their buy-to-let properties in order to supplement their pension.

“By removing the maximum age when applying for a buy-to-let mortgage, TMW is supporting the increasing market demand in this area.”

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    Lenders boycotting pensioners should realise that pensions are the safest from of income. High salaries stop when jobs are lost. Pensioners also tend to have more time and cash to keep properties maintained and tenants happy, further reducing the risk on rent losses due to voids.

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