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Types of Help > Buy to Let Mortgages
Buy to Let
Buying an investment property, whether for permanent letting or as a holiday let can be a good investment, but it pays to be careful.
Important questions to ask are:
- Is the area one which will be safe and attractive to tenants?
- Will it be easy to sell at a later date?
- Can you afford to pay the mortgage if you can't find tenants for a few months?
- Has the likely rental income been confirmed by a reputable letting agent and will good tenants be easy to find?
- Will you need the services of a letting agent to find and credit-check tenants and/or manage the tenancy? (This could cost between 8 to-15% of the monthly income)
- Are you aware of the tax position both for income and capital gains tax on the eventual sale?
- How can you minimise the tax you pay on the income? There are ways to structure your investment that will do this.
- Does the property have gas installed and is there a current gas safety certificate and are there any electrical appliances which also need safety certificates?
- Will it be let furnished or unfurnished and are you aware of the fire safety regulations for furniture?
- Are you aware of the principle of "gearing" concerning borrowing requirements, how it benefits landlords and what the risks are?
- Will it be let to students, a family, shared by several tenants or will it be a corporate let? Different considerations apply in each case.
These are just some of the questions to be considered. Please telephone if you are new to letting and want to discuss the implications further. Buy to let mortgages can be obtained up to 85% of the purchase price so you will need at least a 15% deposit. In some cases slightly more or less than 85% can be borrowed depending on the circumstances.
Use our Buy To let Mortgage Calculator
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Remember. Mortgages are personal to you - your circumstances,
your lifestyle and your budget.
Do you really want to make the biggest purchase of your life without talking to Law Financial Services first?
Do you really want to make the biggest purchase of your life without talking to Law Financial Services first?
Call us now on 01227 362266
Your home may be repossessed if you do not keep up repayments on your mortgage