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Midlands lettings agent: advice in the wake of pension pot changes

It has been labelled as the biggest pension shake up of the century and as of 6th April, those over 55 with a private pension can withdraw as much from their pot as they like, as the requirement for an annuity is scrapped. In theory, this means the days of having to live off your pension as a lifetime income are over, with the possibility of withdrawing the fund as a lump sum now a distinct reality, say Winkworth Midlands letting agents. So why is the property industry so concerned with the pension reforms' While some over 55s have already put down a deposit for a Lamborghini Huracán or booked a round-the-world cruise, new figures suggest that many with access to pension pots will actually be sensible and convert their pension to property. In fact, financial firm Hargreaves Lansdown estimates that 50,000 of the 400,000 people approaching retirement age are planning to invest in property, with the potential for £6 billion to be withdrawn in the first four months*. Whether the funds are used as a deposit or to buy a property outright, Midlands letting agents are already registering more new landlord enquiries as a result of the reform. Property to rent in the Midlands is seen as a safe haven. With major, well-connected cities in the region, a supply of student renters from the acclaimed universities and inward investment that's creating 100s of new jobs, the Midlands letting market is an attractive option for those seeking an alternative investment opportunity. If you are over 55 and are thinking of investing in a Midlands buy-to-let property using your pension pot, it is worth considering the following: Consult a reputable financial advisor before you make any decisions. If you are not planning to use all your pension pot to invest in property, it is worth calculating just how much you would have left and how this may give you a disposable income when you reach retirement age. A financial advisor can also explain any tax you may encounter when withdrawing funds. Make an appointment with a Midlands letting agent. They will be able to advise you on a number of matters, including the tax implications of becoming a landlord. This is especially important if you are over 55 but still in employment. A good Midlands letting agent can also advise you on tenant demand, what types of property rent well and show you a selection of properties for sale in the Midlands. Speak with an independent mortgage advisor. If you are planning to use a pension nest egg to put down a deposit on a property and fund the rest with a buy-to-let mortgage, there may be covenants attached to a loan - such as the length of term and the age of the borrower at which the mortgage term ends. Always use a reputable company. At a time when millions of pounds are being released to investment novices, it is wise to only use trusted, professional firms. If in doubt, consult the Financial Conduct Authority, who has a dedicated 'investor scam' section on its website For advice about the Midlands lettings market and the latest news on demand for properties to rent in the Midlands, contact Winkworth today. * Figures from Hymans Robertson

It has been labelled as the biggest pension shake up of the century and as of 6th April, those over 55 with a private pension can withdraw as much from their pot as they like, as the requirement for an annuity is scrapped. In theory, this means the days of having to live off your pension as a lifetime income are over, with the possibility of withdrawing the fund as a lump sum now a distinct reality, say Winkworth Midlands letting agents.

So why is the property industry so concerned with the pension reforms' While some over 55s have already put down a deposit for a Lamborghini Huracán or booked a round-the-world cruise, new figures suggest that many with access to pension pots will actually be sensible and convert their pension to property. In fact, financial firm Hargreaves Lansdown estimates that 50,000 of the 400,000 people approaching retirement age are planning to invest in property, with the potential for £6 billion to be withdrawn in the first four months*. Whether the funds are used as a deposit or to buy a property outright, Midlands letting agents are already registering more new landlord enquiries as a result of the reform.

Property to rent in the Midlands is seen as a safe haven. With major, well-connected cities in the region, a supply of student renters from the acclaimed universities and inward investment that's creating 100s of new jobs, the Midlands letting market is an attractive option for those seeking an alternative investment opportunity.

If you are over 55 and are thinking of investing in a Midlands buy-to-let property using your pension pot, it is worth considering the following:

Consult a reputable financial advisor before you make any decisions. If you are not planning to use all your pension pot to invest in property, it is worth calculating just how much you would have left and how this may give you a disposable income when you reach retirement age. A financial advisor can also explain any tax you may encounter when withdrawing funds.

Make an appointment with a Midlands letting agent. They will be able to advise you on a number of matters, including the tax implications of becoming a landlord. This is especially important if you are over 55 but still in employment. A good Midlands letting agent can also advise you on tenant demand, what types of property rent well and show you a selection of properties for sale in the Midlands.

Speak with an independent mortgage advisor. If you are planning to use a pension nest egg to put down a deposit on a property and fund the rest with a buy-to-let mortgage, there may be covenants attached to a loan - such as the length of term and the age of the borrower at which the mortgage term ends.

Always use a reputable company. At a time when millions of pounds are being released to investment novices, it is wise to only use trusted, professional firms. If in doubt, consult the Financial Conduct Authority, who has a dedicated 'investor scam' section on its website

For advice about the Midlands lettings market and the latest news on demand for properties to rent in the Midlands, contact Winkworth today.

* Figures from Hymans Robertson

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