Buy to Let (BTL) at a glance
Owning a Buy to Let 3 property isn't like buying your own home; it's more like running a small business.
For the best chance of success, research the market and the area to ensure you buy the right property, in the right place. You should also consider the impact on your tax affairs and get expert advice on pension and inheritance planning.
Here's a brief guide...
Any property used as security, which may include your home, may be repossessed if you do not keep up repayments on your mortgage.
Research and budget
- Talk to letting agents about levels of demand and likely rental income before you decide on a location
- Choose a property that matches your target/ideal tenant(s)
- Consider appointing a letting agent to collect rent, find tenants and deal with routine problems
When you've found the right property, work through the figures carefully to ensure the project looks feasible.
In addition to your Buy to Let mortgage repayments, consider the other costs you'll need to cover such as stamp duty, solicitors' fees, insurance, furniture and fittings, service charge and ground rent for leasehold properties, together with ongoing maintenance and repairs.
Also, think about how you will pay your Buy to Let mortgage if interest rates rise or the property is vacant for any period of time.
Legal considerations
Check your legal responsibilities. For example, under no circumstances should you rent out a property without an appropriate tenancy agreement/lease in place. This is important as it is a legally binding document that sets out the legal rights and responsibilities of both the landlord and the tenant(s).
As a landlord you have a 'duty of care' to make sure your Buy to Let property and any utilities provided are entirely safe for tenants. Some of the areas you need to consider are gas and electrical safety checks and fire regulations.
We offer a range of Buy to Let mortgage options. You can choose a fixed rate or tracker deal and make interest-only or capital repayments. Simply select the one that best fits your needs.
View Buy to Let mortgage rates 210 KB 4 last updated 11 June 2013.
Please refer to our Buy to Let tariff of charges 260 KB for full details of fees associated with our mortgages. These should be read in conjunction with our BTL legal information.
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