Investors Turning to Loan Notes to Avoid Buy-to-Let Tax Crackdown
18 October 2019
According to industry experts, property investors looking to avoid the buy-to-let tax crackdown are turning to loan notes.
By lending money to a developer, which is used to build a single project or multiple properties, the investor is repaid a contractual return.SIGN UP FOR NEWS ALERTS
Security is provided by way of a debenture over the developer’s net assets, which can be seized by a third-party regulated Trustee in the event that the issuer fails to meet the terms of the agreement.
Ryan Murphy, Sales Director for PrinvestUK’s new Loan Notes Department, said “property loan notes offer an investment with a fixed exit, and as they often generate a higher return than traditional bricks-and-mortar, it’s no surprise investors are turning to them.”