The landscape for property finance in Scotland has shifted significantly over the past few years. Changes to taxation, lending criteria, and market conditions have prompted many landlords and investors to reassess how, and whether, they continue to grow their portfolios.
In episode 104, Gillian speaks with Peter McDermid, Owner and Director of Logic Property Finance, about the realities landlords are facing when securing funding in the current market. Peter works closely with landlords and investors across the UK, arranging finance through specialist lenders rather than relying solely on traditional high-street banks.
During the conversation, Peter discusses recent trends in lending for Scottish landlords and the factors influencing lender appetite. The episode also explores how the increase in Additional Dwelling Supplement (ADS) has affected the viability of single property buy-to-let purchases, and why some landlords are now considering alternative acquisition strategies.
Portfolio purchases, refurbishment strategies and risk management
The discussion goes on to examine why buying small portfolios can sometimes offer advantages from both a tax and financing perspective, as well as how lenders typically assess portfolio landlords compared to one-off buyers. Peter also explains how open market value lending works in practice and what landlords need to consider if they want to access this type of funding.
Other topics include the growing use of limited company structures, the rise of “buy, refurbish, retain” strategies, and how the role of bridging finance has evolved. The episode also highlights common mistakes landlords make when funding new acquisitions or restructuring existing portfolios, alongside examples of investors who have managed to perform well despite challenging conditions.
Peter shares his thoughts on how landlords can approach future investment decisions sustainably, particularly in light of ongoing policy uncertainty and potential changes to LBTT.
Finally and on a more personal note, Peter discusses his upcoming charity fundraising efforts, starting with the Edinburgh Kilomathon in March for CHAS. He shares what motivated him to support the charity, and here’s a link to his fundraising page for anyone who would like to donate.
To listen to the podcast in full:
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