Buy-to-Let Guide
There is a great deal to consider when buying-to-let
You can never be too thorough with plans to buy then let a property. Try to get as much information as you can, and it might be wise to ask your solicitor if they have done this kind of work before.
You might want to consider having two surveys done: the general upkeep of your property as well as the new buy-to-let property, as it could prove to be a significant drain on resources.
These are popular and can be specifically tailored to help combat downtime when the property isn't occupied. The drawback with these mortgages is they can prove to be a great deal more expensive than a standard mortgage, with some lenders asking for a deposit anywhere between 20% and 30%.
- Maintenance and repair
- Furnishing the property
- Landlord insurance
- Mortgage repayments
- Legal fees
- Stamp Duty Tax
Having taken into account all the future financial considerations, you then need to decide what kind of property you might want to buy to let. How many bedrooms? Near to shops and amenities? Do you want to furnish or part-furnish the property? These questions will help you have a more focused property search.
Most leases are around 99 years, and as the time comes closer to a lease expiring, mortgage companies are reluctant to loan because of uncertainty about how the freeholder might want to proceed. For example, if you have a 25-year mortgage and a lease expiring in 20 years, there would be a significant problem moving house after 10 or 15 years because the lease would expire on the next buyer.
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