If you're thinking about becoming a landlord or expanding your portfolio, there are a lot of things to consider before purchasing a property.
The process of purchasing a buy-to-let home differs from acquiring a residential property for yourself, so it's important to know what to expect.
Our staff specialise in buy-to-let guidance, so we've created a simple guide to purchasing a buy-to-let property.
What is a buy-to-let?
First and foremost, the fundamentals: A buy-to-let property is one that has been purchased with the idea of renting it out.
A buy-to-let mortgage is different from a residential mortgage, and you'll need to apply for one if you can't afford to buy the house outright.
When applying for a regular mortgage, your income is considered, however when applying for a buy-to-let loan, the lender considers the anticipated rental income as your major source of income, while your personal income is considered secondary.
What type of property should you buy?
The location of the property in relation to facilities and transportation, as well as the neighbourhood and demand in the area, are all key considerations.
Just like you would when looking for a home, you should conduct thorough research into the area where you want your buy-to-let property to be placed.
Consider the type of tenant you want to attract and include that into your research.
Finding a property in the suburbs near decent schools is your best choice if you're wanting to rent to families.
A home near a university, as well as good yet inexpensive restaurants and nightlife, is essential if you want to rent to students.
Is it necessary to use a letting agent?
It is important to retain the services of an expert lettings agency, as they can ensure that your rental properties adhere to the various pieces of governmental regulations.
Every landlord has a different reason for letting a property and every landlord has different needs.
That’s why we provide a range of flexible landlord services.
Credit checks on possible tenants, drafting a lease contract, chasing late rental payments for you, assisting with any on-site maintenance, and assisting with obligatory gas and energy safety and efficiency assessments are all services provided by letting agents like us.
In general, if you're a budding landlord, using our lettings services will relieve you of a significant amount of stress!
Contact our team of experts for specialist guidance on buying a buy-to-let property.
