Skip links

Financial Planning for Landlords

Make your money work for you

At Phare Financial Services we are constantly developing our services on offer to landlord clients.

When working with your Financial Adviser and/or Business Planner, landlord clients are encouraged to consider:

  • Are you an accidental landlord, property investor, or rental property business owner?
  • What are your objectives?
  • Where are you now?
  • How much money after tax do you want to be able to draw on?
  • How large and leveraged does it make sense for you to grow to?
  • Are you letting the tax tail wag the planning dog?
  • Are you securing an acceptable profit?
  • Are you setting yourself reasonable targets or accepting of ‘the way its always been’
  • Is each unit in your portfolio ‘paying its way’?
  • Are your expenses (including tax) too high?
  • Are you trying to push a boulder uphill? It could be easier to walk around it.

Wherever you are on your property journey, from just starting out, to building a significant business, or even selling up – we can probably help.

Read more about just some of the areas we can help landlords with below:

And for Portfolio Landlords in particular who are looking to build, run and grow a professional property business:

Selling Up to Diversify Your Property Business

Traditionally, many landlords have opted not to sell their under-performing properties – often because of the subsequent tax consequences – and instead look to grow the business by re-mortgaging to release equity.

However, sometimes it does make sense to lock in a profit (or a loss) and reinvest in different areas.

In addition, those landlords restructuring their property portfolio as a business could well benefit from a significant reduction in Capital Gains Tax, providing an opportunity to sell under-performing properties and take their business into more promising areas and letting types.

Phare Financial Services can help with your mortgage needs as well as helping you with your overall financial plan, including other investments..

Selling Up & Leaving the market

If after considering all the options you have decided to leave the market and sell up your property portfolio, then we can help you with your planning to ensure that you achieve this in the most tax-efficient way possible and that moving forward, you are making the most of the funds left over from your property sales.

If you have not yet considered all the options and your main driver for selling up is say – tax reasons – then there might be a better way.

Investment Diversification outside property

Many landlords have built their wealth through their property business and may not have other sources of income or savings.

Allocating a proportion of business profits to investments could help protect landlords from unexpected future changes in housing policy or unforeseen issues with the housing market in general or more specifically, difficulties with their own portfolio.

We recognise that a property business can be exceptionally diverse in its own right and many landlord clients will look to reinvest in their property business at the expense of other options such as pensions. For many this might be the right route and investing heavily in your property business may of course be the best option for you. Of course, there are benefits to diversification and not putting all your eggs in one basket can give you added security and also be great for peace of mind.

For landlords looking to diversify, we are here to help..

Property as Your Pension

If you are a landlord intending to live off the profits from your property portfolio in retirement, then there are things you will want to consider, these might include:

  • Your plans for managing your property portfolio in later life
  • Do you need to grow your portfolio to cover management costs and retain your lifestyle?
  • Are you planning on selling property to release equity?
  • Do you intend to bring your children into the property business?
  • Do you wish to pass on your portfolio to your children?

Whatever your chosen vehicle or vehicles to support your retirement financially, it is vital to make the most of them, including being as tax efficient as possible. Something that expert advice can help with.

See Retirement Finances & Pensions

Succession Planning & Insurance

What happens later when you are no longer on this planet?

Will you have sold up and spent every penny to cheat the tax man?

Or do you want to retain your hard-earned estate for the benefit of your beneficiaries?

At some point it will make sense to plan for this.

If you wish for your property estate to remain as intact as possible after your death, then you may need additional protection.

Running a property business as a business, and estate planning, can help with Inheritance Tax, but you cannot take your mortgages with you!

Do you care whether you leave your beneficiaries with huge debt? Can they pay it off in anyway other than by breaking up the business you have worked hard to build?

Life Cover is one way of helping.

You can structure this tax-efficiently and so the cover is greater when you need it most. For example, your beneficiaries may well have much better paid jobs in say 10- 20 years’ time, so you may not need as much cover then as you do now.

For support, please call 020 3701 2222 or email with your enquiry.

You can also read more on our Insurance & Protection Planning page.

Please get in touch to discuss your individual requirements.

Contact Us