THE FINANCIAL CONDUCT AUTHORITY DOES NOT REGULATE MOST BUY TO LET MORTGAGES
‘Your home may be repossessed if you do not keep up repayments on your mortgage’
Individual mortgage advice, tailored to you
Whether you’re a first time landlord or have years of experience under your belt we can help. There is a lot to consider when becoming a landlord so here are some tips:-
- Stamp duty and legal fees, including surveys / valuations
- You will need a deposit in order to secure a mortgage
- Obtaining compulsory inventories, gas and electricity safety certificates
- The cost of any minor repairs required before tenants move in
- Furnishing costs – you can choose to let your property out with or without furniture and your rental price will probably reflect this
- Refurbishment and development costs if you plan to buy a property to improve or update
- Letting agents – you may choose to find your tenants with the help of an agency, who will charge for this service
- Maintenance and repair of the property in the long-term
- Landlords insurance
- If you decide to use a management agency to help with the ongoing management then they will charge a fee for this
CHOOSING A PROPERTY
Rental returns are important to consider before you buy so study the local area.
Things that will make a property more attractive are:
- Walking distance from public transport
- Good commuter links to the nearest city or town
- Close to hospitals or Universities
- For family rentals being close to good schools
- If you plan to furnish your property you should consider the quality of your fixtures and furnishings. Whilst it may be more costly upfront, better quality décor will attract tenants and also last longer.
If you are just starting out as a landlord you might want to go for a low maintenance property so you have less to worry about.
Before you invest in a buy-to-let property, there are certain requirements and responsibilities you need to think about.
As a landlord, you must:
- Understand and comply with the legal requirements, including health and safety obligations towards the tenant and any licensing or registration rules.
- Treat your tenants fairly.
- Think about how you will pay your mortgage and other costs during ‘void periods’ when your property is empty and you do not receive any rental income.
- Protect the value of your property by keeping it well maintained and, for a leasehold property, meeting valid requests from the freeholder and/or the managing agent.
- Make sure you have appropriate buildings insurance in place, from the day your mortgage completes and throughout the mortgage term.