Buy to Let
CORONAVIRUS / COVID-19: We are continuing to provide a full service. We offer remote meetings by telephone or video conferencing software such as Zoom, Skype and Facetime if required.
Buy to let properties are becoming an increasingly popular investment in the UK. For many, the promise of a steady income stream and a tangible asset that, over time, pays for itself is an exciting alternative to more passive forms of investing.
However, buying property to let also comes with its own challenges. Not only are you purchasing a property, you are also embarking on a career as a landlord, which comes with many unique obligations that you may not always be prepared for. That is why we would strongly suggest getting the advice of a Solicitor experienced in Property Law before purchasing a buy to let property.
What Is Involved?
Buying a property to let begins with finding a suitable property. While the searching process will be much the same as if you were searching for a residential property for yourself, considerations such as the location and type of tenant you wish to attract should also be factored into your search.
Once you have found a property, you can either buy it outright using cash or take out a buy-to-let mortgage. It is important to note that unlike a regular mortgage, a buy-to-let mortgage is usually interest-only, meaning your monthly payments cover your interest but not your capital debt. At the end of the mortgage term, you will have to pay the full amount off, either by selling the property or by taking out another mortgage.
Once you have secured your property, you can begin the process of letting it out. This means advertising the property, finding suitable tenants, and preparing and exchanging the legal paperwork that constitutes a tenancy agreement. You will also be responsible for managing the property, including its upkeep and attending to any emergency maintenance and repairs, as well as paying the running costs associated with a rental home.
While a buy to let investment can seem attractive, it is also worth noting that there are many risks involved. The rent you can charge is not guaranteed and will be affected by external factors as well as whether you can find tenants, but you will have to pay your mortgage regardless. Repairs and maintenance will cost you further money, and if you decide to sell there is no guarantee that you will make a profit, or even recoup your initial outlay.
What We Can Offer You
Whether you are a first-time investor or a seasoned professional adding to an existing portfolio of property, our expert Property Law team can provide valuable guidance and support throughout the entire buy to let process, from initial purchase to the ongoing responsibilities of maintaining a rental property.
Our accreditation through the Law Society’s Conveyancing Quality Scheme attests to our expertise in Residential Property Law. If you are interested in purchasing a buy to let property, contact a member of our team today to find out how we can assist you.
