Buy to let property is an investment in which an individual purchases a property to rent it out and generates a monthly payment. This type of investment is not for owner occupied homes but to generate rental yield.
Investment and buy to let properties
More and more people are enjoying the rewards of investing in property. And buying-to-let is a great way to ensure that your property provides a regular income and strong return on your investment. The key to successful property investment is to do your homework and seek expert legal advice before investing in a property.
Requirements for buying a buy to let properties
The foremost requirement for buying a property is to have enough funds to complete the purchase and the associated cost like deposits, legal fees, any cost related to stamp duty and other miscellaneous expenses.
If your plan is for a mortgage, you must secure a buy to let mortgage. The requirements for buy to let mortgages can differ from buy to let properties. According to your circumstances, a residential mortgage plan can be offered to you with mortgage interest. It is recommended to consult with a financial advisor and property solicitor for details.
Many lenders usually review your credit history and evaluate your financial reliability regarding mortgage payments. A good credit rating increases your chances for good financing deals.
Legal and Tax considerations
There are several legal responsibilities related to the sale and purchase of properties, like capital gains tax, property value, property prices, rental income, safety regulations and licensing requirements. Ensure you familiarise yourself with all these considerations.
At QualitySolicitors we can help you with every stage of the property investment journey, from choosing the right property to finding suitable tenants. We’ll also help ensure that your investment is sound and take care of all the legal aspects, from arranging searches and surveys to drafting a sound tenancy agreement. When buying-to-let there are different legal requirements to buying your own home, and so it’s always worth speaking with a solicitor who specialises in this area.
Our property solicitors provide friendly, common-sense advice for all aspects of property investment and are experts in landlord and tenant law. We’ll explain what rights you have as a landlord and help you understand the responsibilities you have to your tenants. For first-time landlords, our advice is invaluable, providing the peace of mind that everything is in place and legally sound.
For advice about investment and buy to let properties, call one of our experts today on 08082747557. We offer a free, initial over-the-phone chat, so you can find out about the process, timescales and costs with no obligations.
Yes, as a first-time buyer, you can buy a buy to let property, but you may be asked for a higher deposit or limited options for a mortgage.
It is essential to research the market and seek advice from financial and legal experts.
Property investment requires fulfilling several legal obligations.
1. Safety Regulation: Gas safety, fire safety, Electricity safety
2. Energy Performance Rating
3. Tenancy contracts
4. Licencing and Local Regulations/p>