Property, tax & specialist finance:
what matters this month

Mortgage rates have edged higher in recent weeks as rising swap rates have filtered through to lender pricing, although competition between lenders remains strong.

This month: what a good rental yield really looks like, moving fast with bridging, and the tax rules catching property owners out.

Market Snapshot

Five practical reads this month, drawn from our latest guides. Each one is written around a real client situation — because the tax deadline you didn’t know about, or the yield you didn’t actually calculate, is usually where the cost hides.

In this issue

01  ·  Buy-to-Let

What’s a good rental yield in London in 2026?

A client recently described his three London flats as producing “decent yields.” When we ran the net numbers — after fees, voids, insurance and maintenance — two were barely clearing 2.5%. The most common blind spot in buy-to-let is confusing gross yield with net, and not realising how either affects what you can borrow.

Above 4% is strong; above 5% is exceptional, and usually found in outer east boroughs like Greenwich, Newham and Bexley. But lenders don’t lend on the headline — they stress your rent at 125% or 145% ICR, and plenty of investors fail that test without realising.

02  ·  Specialist Finance

Bridging & auction finance: speed when it counts

A client won a lot at auction, paid 10% on the day, and had 28 days to complete. Her bank quoted eight weeks. We arranged a bridge that completed in fifteen working days — she kept her deposit, took ownership, and refinanced onto a buy-to-let seven months later.

That’s what bridging is for: moving at the speed the situation requires. The things that decide a good case — a solid, evidenced exit; a sensible LTV; and comparing on total cost, not headline rate. If you’re working to an auction deadline or a broken chain, line up terms with London FS before the hammer falls.

03  ·  Property Tax

Capital gains tax on property: the 60-day trap

A client who sold a buy-to-let flat called us the week after completion. He had no idea he was supposed to report and pay his CGT within 60 days — he thought it went on his January self-assessment. The penalty clock had already been running for weeks.

Improvements (an extension, a loft conversion) are deductible; ordinary repairs aren’t. CGT and financing decisions are more connected than people realise — London FS coordinates the mortgage piece closely with tax advisers and solicitors.

04  ·  Self-Build

Self-build mortgages: how the funding actually works

Someone came to us three weeks into their self-build, wondering why their account had gone from comfortable to empty. The mortgage they’d arranged elsewhere released funds in arrears — after each stage is signed off — but the contractor needed paying first. Nobody had walked them through how stage payments actually work.

That cashflow gap is the most common reason self-builds stall early — and it is entirely avoidable if the structure is explained from the outset. Whether payments arrive in arrears (after each stage) or in advance (before it) is the single most important choice you will make. London FS talks this through properly before anything is agreed — along with how owning the plot can count towards your deposit, and why lender selection matters so much for directors and the self-employed.

05  ·  Estate Planning

Inheritance tax on property: a 2026 guide for landlords

Rising values and frozen thresholds have quietly brought a lot of ordinary estates into inheritance tax territory. The £325,000 nil-rate band has been frozen since 2009 and is currently frozen until 2031.

The sting for landlords: a buy-to-let portfolio gets no Business Property Relief — HMRC treats letting as an investment business rather than a trading one — so a portfolio held in personal name sits in the estate at its full value, often producing a large bill on assets that generate relatively little income. IHT planning needs a solicitor and a financial adviser; the London FS role is the mortgage and lending piece, coordinated closely with both.

From the desk

“The theme running through every one of this month’s reads is the same: the number on the surface is rarely the number that matters. A ‘decent’ yield, a mortgage that ‘should be simple’, a tax bill nobody flagged — the value we add is doing the arithmetic properly before it costs you.”

— The London FS team

Refer a friend

Know someone who could use a straight answer?

Most of our clients come to us because someone they trust made the introduction. If a friend, family member or colleague is weighing up a mortgage, a remortgage or something more complex, we’d be glad to help them.

As a thank you, we will give you a £100 Amazon voucher when someone you introduce completes a transaction with London FS. The voucher is not dependent on the lender, insurer or product recommended and will not affect the advice provided.

Voucher issued once the introduced client’s transaction completes. Applies to all case types.

A conversation costs nothing

Whether it’s a portfolio review, a tight deadline, or a question about structure — your initial consultation is obligation-free.

Warm regards,

The London FS Team

Finance • Protection • Strategy

0208 427 5057  ·  enquiries@london-fs.com  ·  london-fs.com

Your home or property may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.

london-fs.com  ·  enquiries@london-fs.com  ·  0208 427 5057

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Dhavi Limited (trading as London FS) is authorised and regulated by the Financial Conduct Authority – Firm No. 628993. Registered in England, Company No. 07301914. Registered Office: 7 Bell Yard, London, WC2A 2JR. We are a credit broker, not a lender. The FCA does not regulate some forms of buy-to-let, secured loans, commercial finance, bridging finance, overseas or offshore mortgages and will writing. Fees are charged on completion of each mortgage contract; typical fees range from £500 up to 1% of the mortgage loan depending on the product type. The overall cost for comparison is 5.5% APR — the actual rate will depend on your circumstances. Your initial mortgage consultation is obligation free. Ask for a personalised illustration. Tax and estate-planning content is general guidance only and does not constitute tax, legal or financial advice; please consult a qualified adviser. Contents believed correct at date of publication (July 2026).