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Please remember that financial investments may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.

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BTL platform GetGround sees sixfold rise in registrations

BTL

The platform helps international property investors manage their investments across England and Wales

Buy-to-let digital company formation and management platform GetGround has seen a sixfold rise in the number of companies formed on its platform on year-on-year (YOY) basis for the first five months of 2021.

GetGround is a graduate of HM Land Registry’s Geovation programme, a government-backed startup accelerator which supports young businesses in the location data and property sectors.

The platform helps international property investors and landlords manage their residential property investments across England and Wales

GetGround has secured a 4% market share of monthly volumes since its formal launch in January 2020.

Over 3,500 landlords and property investors from 57 countries have registered companies on the platform in order to purchase properties in the UK which are collectively worth more than £300m.

The company has reported operating on an annualised run rate of more than 2,000 new companies a year managing property worth more than £500m.

The company expects the collective value of properties on its platfrom to exceed £1bn over the coming months.

According to GetGround analysis of Companies House and Hamptons data, nearly 60% of all buy-to-let (BTL) is now purchased through companies. This figure is three times more compared with figures for 2016.

Moreover, there was a 23% rise in the number of companies formed for the purpose of BTL investing between 2019 and 2020 to 41,700, according to Hamptons data.

By joining GetGround, customers can set up UK limited companies entirely online within 30 minutes, through which they can purchase BTL properties and invest through company structures.

GetGround provides a current account for rental income and expenses. It also manages the companies on a daily basis, from company filings and accounting to tax returns.

The business has also confirmed a Series A funding round; participants include QED Investors, Mosaic Ventures, Hambro Perks, and Taavet Hinrikus.

Moubin Faizullah Khan, co-founder and CEO at GetGround, said: The adoption of company structures for investing in BTL has massively accelerated in recent years.

Yet until we launched GetGround, there was no one platform that supported landlords and investors through everything that company BTL investing involves – from company formation and legal documents, to current accounts, tax returns and accounting, he said.

The speed at which customers are turning to GetGround shows us that our platform solves that problem, Khan added. Savvy property investors understand the overwhelming benefits of investing through companies over personal ownership.

Whether it’s tax efficiencies, wide access to mortgage finance options, personal liability protection, or inheritance planning, company BTL makes good business sense. It’s good for tenants too, reducing their costs and improving standards, he said.

He concluded: Our platform directly addresses the demand from these investors to make company BTL investments as straightforward and efficient as they can be.

Yusuf Özdalga, who leads QED Investors in Europe, said: Adoption of GetGround’s innovative offer is growing fast, but more critically, so too is the market the team is working in. No one single business has dominated company BTL, despite how quickly the sector’s expanding, and the services required by customers are still woefully fragmented.

GetGround is aggregating the value chain in a really exciting way because it makes sense to their customers for whom simplicity and speed are everything, he said.

Bart Dessaint, partner at Mosaic Ventures, added: GetGround’s platform is empowering landlords to self-manage the admin of BTL, but also creating a single legal standard across properties, a foundational step to improved financial services.

George Davies, partner at Hambro Perks, said: GetGround’s application of technology and efficient company structures to the BTL market is ground-breaking and has delivered rapid growth since our first investment.

He said this innovation drives better returns, improved efficiency, and paves the way for new financial innovations for the asset class.

Important:

This article is for information purposes only.

Please remember that financial investments may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.

There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.