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Buy to Let Investment Advice for the UK – 4 Tips for Success

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Buy to Let Investment Advice for the UK – 4 Tips for Success

Article by Steve Martin









Buy to Let Investment Advice for the UK – 4 Tips for Success

Location – A good location is imperative. If you are looking at family sized homes then proximity to good school catchment areas will be important. If you are looking for Student style accommodation then properties close to colleges or transport links to colleges are good. There is also normally a Student Area of most College towns, typically where the larger, older houses with multiple rooms are found for an affordable price. If you are thinking of a modern apartment, then locations in the centre of town or near pubs, restaurants and shops are ideal places for young professionals to rent.

Avoid: Rural areas – there is a limited market. Bad neighbour hoods

Property Type – we have already discussed 3 types of property above. These all have advantages and disadvantages. The UK rental market is flooded with 1 and 2 bed apartments which have been bought by investors. If you choose to purchase an apartment then make sure it stands out from the crowd, either through location, design or price. Consider furnishing, as there are usually less furnished properties available in most areas (City centres excluded).

Larger homes obviously cost more to buy and maintain but are popular with executives relocating with families. They can receive higher wear and tear if there are children or pets present.

Student homes may be in cheaper areas which can over time become trendy places to live realising a good return on your investment. Renting on a room by room basis can achieve a higher overall rent than renting the whole house to a family. The downside is that they tend to not be looked after and can need a lot of TLC between tenancies and may only rent for 9 months of the year during term time.

Décor and design – Most people, regardless of tenant category look for the following:-

• Modern Kitchens with appliances – even if unfurnished.• More than one bathroom – unless studio or 1 bed flat.• Neutral colours – not necessarily magnolia.• Off road parking – preferably more than one space.• Outside space – terrace or balconies in apartments give the wow factor.• Low maintenance gardens.• Clean and tidy properties.

Rental Value – before committing to a mortgage do your research thoroughly. The main property portals will allow you to check the market in the exact area you are considering. Look at:

• How many of the type of property you are looking at are available at the same time. • What rental they are asking for (remember most people make a lower offer than the advertised price).• How long do they stay on the market?• The numbers of furnished vs. unfurnished.• The quality and design of the properties available.

You may print this article or display on your website providing you include the Authors name and link to letting agents leamington spa

For more information visit Landlord Information or Tenant Information



About the Author

Steve is Director of Martin Property Management – letting agents for Leamington Spa, Kenilworth and Warwick – Warwickshire, UK.










10 Tips For Buy-To-Let Investment Success

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10 Tips For Buy-To-Let Investment Success

Article by James Copper









The Buy-To-Let market place is booming. More and more people are investing in a second property as a long term investment plan. As attractive as the proposition sounds, there are a number of potential pitfalls that need to be taken into consideration. Use the steps below to ensure that your Buy-To-Let investment is a success.

#1 Choose The Right PropertyThe location is extremely important. Make sure that speak to a number of local letting agents to determine the supply and demand in the area. Look at such things as whether there are local employers or a university. You can get the details of letting agents near you by contacting The Association of Residential Letting Agents.

#2 Choose The Right MortgageYou will need to check with your lender to how much you eligible to borrow. Most lenders will allow you to borrow 85 percent of the properties value. Also most lenders will take into account the expected rental income when they are deciding how much they will lend. Make sure that your rental income covers 125 percent of your monthly mortgage payment.

#3 Work Out Costs And IncomeWork out how much your monthly mortgage repayment will be and whether the expected rental income will exceed this. Checking out the rental prices of similar properties advertised in newspapers in your area will give an indication of whether this is possible. Also look at whether you could afford your mortgage if interest rates shop up and the property is unoccupied for 3 months.

#4 Consider Hidden CostsYou will have to pay solicitors fees, estate agents fees, building insurance, mortgage arrangement fees, stamp duty and possibly service charges and ground rent.

#5 Budget For Ongoing CostsYou are responsible for ensuring that the property meets health and safety standards. Local authorities require that you comply with fire regulations, which could mean you have to put in fire doors and smoke alarms.

#6 Choose A Professional Letting AgentYou might want to consider using a professional letting agent. They will find tenants, collect deposits and the rent and arrange the inventory and tenancy agreements. But expect to be charged anything from between 10 to 18 percent of the gross rental income that you get.

#7 Ensure You Have The Right InsuranceAs you are the owner it is your responsibility to insure the structure of the property, which includes permanent fixtures and fittings. You will need to check your policy as most buildings insurance policies exclude buy-to-lets.

#8 Sort Out Your Tax PositionYou have to pay income tax on any rental income you receive, but you can deduct some expenses and you will probably be liable for Capital Gains Tax when you sell. You would be well advised to speak to your accountant before you proceed.

#9 Get A Fully Flexible MortgageThese types of mortgages are well suited to the buy-to-let market. This is because you can fluctuate your payments in line with rental income.

#10 View Buy-To-Let As A Long Term Investment Do not expect to make a quick profit on rental income and equity gain in the property. You look at the longer terms for profits. Generally about five to ten years.



About the Author

James Copper writes on all areas of finance. He works for Any Loans who specialise in Secured Loans and Remortgages.










Buy to Let: 10 Tips for Success

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Buy to Let: 10 Tips for Success

Article by SeanH









Finding a buy-to-let mortgage is a lot easier than it used to be, as more lenders are entering the market. But the actual process of becoming a landlord/landlady isn’t quite so straightforward. Here are some tips to smooth the path.

1. Look carefully into the rental potential of the area before committing yourself to a buy-to-let mortgage. City centre areas often attract the highest rents. However, in some city centres, there may have been so much new build for the buy-to-let market that supply exceeds demand.2. Remember too that if you buy in an area where property prices are booming, your profit on re-sale may be reduced. It’s a gamble – if you buy in a currently down-market area, it may be the next property hotspot, or the property may prove virtually unsaleable. Find out all you can about property trends.3. If letting the property will involve a change of use – for instance, to multi-occupancy accommodation – make sure planning permission is available before committing yourself to a buy-to-let mortgage.4. Don’t just go for the first lender you find for your buy-to-let mortgage – for instance, your existing lender. Without shopping around you can’t be sure you are getting the best deal. Shopping around can be time-consuming – finding an independent buy to let broker can simplify the process.5. Make sure your application for a buy-to-let mortgage includes all the relevant details. Many applications come unstuck at the last minute because of undisclosed information. For example, if the developer is offering a discount and you base your application on the full price without mentioning the discount, you could be in trouble.6. Regularly review your finance facilities. The buy-to-let mortgage deal you get may have been the best at the time, but your lender may “forget” to let you know about a new and better product they bring in three months later.7. Consider looking for a property within easy travelling distance of where you live. Having to make regular trips of several hours to deal with problems, repairs, complaints etc. may quickly erode your enjoyment of your new venture! If it is at a distance, think about using a lettings agency. This will reduce your profits, but will enable you to relax and forget about day-to-day problems.8. Remember that the purchase of the property is not your only expense. You will need buildings insurance and there will almost certainly be repairs, refurbishments and alterations that need doing. And don’t forget that your buy-to-let mortgage will need paying whether you have a tenant or not. You may need to think about a mortgage protection policy – consult a broker to find the right type.9. Once you have your buy to let mortgage and your property in place, it’s tempting to grab the first tenant that comes along – the last thing you want is “down-time”. But this could be a costly mistake. Get references from an employer, and a previous landlord if applicable, and ask for a credit check. Insist on an up-front payment of a deposit (equivalent to at least a month’s rent) plus at least the first month’s rent in advance. Draw up a legally binding contract and go through all the fixtures and fittings together before the tenant moves in, so there is no argument about what condition they were in. If the tenant is unhappy about any of this, find another tenant. 10. Put utilities – gas, electricity etc. – in the tenant’s name. If they fail to pay their bills, you are less likely to be cut off, and the utility company can chase them and not you for the payment.

Getting a buy-to-let mortgage can be the start of an exciting and profitable adventure, or of a horrible nightmare. Following these tips can help you make sure it’s the former.



About the Author

Sean Horton is a Director of a buy to let mortgage broker who offer specialist advice for buy to let mortgages