Buy-to-let

Some investors don’t plan to fail but they do fail to plan

Do you have a deposit of about 15-20 per cent of the property value?

Can you get the place up to a standard where you can be confident it will attract tenants?

Do you have the funds to pay for any future maintenance requirements?

Could you financially weather any fluctuations in the property and rental market?

Checklist
One of the most important factors a tenant will look for is the location.

Desirable properties are conveniently located for public transport, local amenities, restaurants and bars and have parking facilities nearby. If you are buying-to-let in the student market, proximity to the university is also a major selling point.

Do your homework to find out which areas and what kinds of property are in demand. Charging too high a rent will put off prospective tenants - research the market conditions thoroughly. Remember that rent is not the mortgage, and if the lettings market is sluggish, you may not succeed is covering your entire monthly mortgage amount.

A well maintained and attractive property will be much more in demand than a run down property.

If you decide to let the property furnished, it is worthwhile taking some time to find out what features make a property desirable to tenants.

If you have the money, time and inclination, you may consider investing in a property that needs some work.

If you do not have the time or interest to buy a property that needs a lot of work, a newer property may be more suitable. However, it is worth remembering that even new properties will need maintenance and this will increase as the property ages.

When you are buying the property, try to remember that it is not you who is going to be living there. Look at it with an objective eye. Think about the property from a tenant's point of view.

Buy-to-let mortgages
There are an increasing numbers of lenders who have loans and mortgages tailored specifically for the buy to let market. These mortgages are also referred to as Residential Investment Loans.

They will usually lend up to 15-80 per cent of the purchase price of the property

Are usually about 0.5 per cent higher than a normal, standard variable rate mortgage

Are available in Long, Short, Fixed and Capped options

If you require any further information about the services that we provide or would like to review your financial planning position, please contact us

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