Buy to Let Propery and Buy to let Conveyancing Quotes
Thinking of investing in buy to let property? Rental property remains in high demand across the UK, but there’s more than just the price of buying property to consider. Find out how much you’ll need to start your buy to let property portfolio with instant online buy to let conveyancing quotes.
Is buy to let property a good investment?
It can be. With high house prices across the country, many individuals and families turn to renting as a more affordable option to buying a home and competition for rental properties is often fierce. Plus, there are a wide range of rental investments available other than straightforward flats and houses, such as student or holiday lets. However, being a landlord is no get-rich-quick scheme. You’ll need to dedicate your own time and money to maintaining your rental property and there is no guarantee that any rental property will be a profitable investment. Plus, you could find yourself in a stressful and expensive situation if you end up with a problematic tenant.
How much does buy to let conveyancing cost?
The cost will depend on what you plan to do. Remortgaging a property you already own onto a buy to let mortgage will generally be cheaper than purchasing a new property to rent out. There will also be more related costs if you purchase a new property, such as Stamp Duty Land Tax. Whether you’re planning on purchasing a new buy to let property or remortgaging, you can get instant online buy to let conveyancing quotes on our website, including information on disbursements which will be payable. Bear in mind that you will also need to be able to afford to maintain the property, plus meet your mortgage repayments if your property is untenanted or if your tenant fails to pay rent for a while.
Calcuate your buy to let conveyancing costs using our conveyancing fees calculator.
What will I be responsible for as a landlord?
You will have a number of responsibilities which you must ensure are fulfilled. Even if you employ a letting agent to handle day-to-day problems, you will be held liable if your tenant makes a housing disrepair claim. Some of your responsibilities will involve:
- Maintenance of communal areas
- Making sure the property has a supply of heating and hot water
- Making sure any gas or electrical supplies are safe to use
- Repairing damage to the property’s exterior, such as gutters or windows
- Keeping the property safe from health hazards
- Checking that your tenant has a legal right to rent in the UK
This is not an exhaustive list – find out more in An Overview of Landlord Responsibilities
How much rent should I charge?
For a rough guide, take a look at the price of rent in your area and for similar properties, and then use this information to influence your decision.
Which properties are best to invest in?
All different types of rental investments have advantages and disadvantages, but you’ll need to pick a property which will appeal to the kinds of renters in your area. It is worth looking to see what other kind of rental properties are available in the area before choosing a property yourself. Your options may include:
Standard self-contained flats
Advantages:
- These properties appeal to a wide range of groups including families, couples and professional individuals.
- You have more freedom to decide what sort of tenancy you’re going to offer and whether to provide your property furnished or unfurnished.
- If you offer an assured tenancy, usually won’t need to find new tenants frequently.
Disadvantages:
- If you struggle to find a tenant for your property for a while, you won’t receive any rental income for that period.
- There are other options available which could potentially earn you more income.
- If you give a problematic tenant an assured tenancy, you’ll be stuck with them unless they decide to leave or you evict them, which can be a stressful and lengthy process.
Houses in Multiple Occupation
Advantages:
- A house in multiple occupation (HMOS) can provide higher rental yields than other properties
- You can still receive a good rental income even if one room remains untenanted for a while
- You can maximise the amount of rental income you receive from one property
Disadvantages:
- You might need an HMO licence, which can cost around £600 and usually need to be renewed every five years
- You have to comply with HMO regulations, which can vary depending on your local area’s requirements. These can include providing enough kitchen and bathroom facilities for the number of tenants
- Although you are not legally obligated to provide furniture, an unfurnished HMO is less likely to attract tenants
- It is generally more difficult to get a mortgage for an HMO compared to a typical buy to let property.
If you’d like to know more about HMOs, please see our blog titled Houses in Multiple Occupation Conveyancing.
Student lets
Advantages:
- You can offer fixed-term contracts which last a year, meaning you won’t havae to worry about a room suddenly being untenanted and you’ll know when to start looking for new tenants.
- You won’t be stuck with problematic tenants for long.
- Students are generally less fussy about property. They’re less likely to be put off if the property could do with redecorating, or if there’s no parking space available.
- You’re unlikely to have many void periods. There’s always a steady influx of students looking for accommodation and many students like to rent the property even before term starts so that they have somewhere to store their possessions.
Disadvantages:
- You will need to purchase a property within reasonable distance from the university. This can be competitive – and expensive!
- Students generally need fully-furnished accommodation.
- You will often need a guarantor for student tenants.
- You will face competition for tenants and space not only from other private landlords, but also from university accommodation
Holiday lets and Airbnbs
Advantages:
- The UK is a popular tourist destination and many tourists use holiday lets as a cheaper alternative to hotels
- Guests will usually stay a couple of weeks to a month at most, so you won’t be stuck with a problematic tenant for very long
- Some lenders will allow you to live in your buy to let property yourself for part of the year.
Disadvantages:
- You will usually need to provide furnishings
- You will need to purchase a property in an area that is popular with tourists, which can be expensive
- There will likely be periods during which not many people are looking for holiday lets
With all buy to let properties, location will be a major deciding factor as to which type of rental property would make the best investment. Different areas will be popular with different groups so it is important to do your research and see where different sorts of tenants want to live. Don’t forget that you’ll need to visit the property yourself for maintenance if you aren’t going to instruct a letting agent, so it is wise to purchase a property that isn’t too difficult for you to get to.
How do I purchase a buy to let property?
Start by making an offer on the property you want to buy. If your offer is accepted, you should instruct a buy to let conveyancing solicitor as soon as possible who will begin by raising enquiries and conducting searches. Once the seller’s solicitor has sent the draft contract, they will go through this to make sure everything is as it should be before exchanging contracts with them and making the sale legally binding.
How do I get a buy to let mortgage?
Buy to let mortgages are typically calculated based on how much rental income the property is likely to make, rather than your income. There are a wide range of buy to let mortgages available from lenders depending on exactly what you’re looking for, including mortgages for limited company purchase. To find the best deal for you from across the market, book an appointment with the mortgages team at Starck Uberoi Wealth. They offer unbiased, knowledgeable mortgage advice tailored to you, with recommendations from the whole of the mortgage market. Their financial planning team can also provide advice on tax-efficient investing so you can make the most out of your property investment.
Should I set up a Special Purpose Vehicle?
Investing in buy to let property using a Special Purpose Vehicle (SPV) comes with a great many benefits. For example:
- It can offer some tax advantages
- It is easier for investors to transfer assets from one another
- It separates the property investment from any debts or other financial obligations that the investors have.
- Buy to let lenders are often more willing to lend to investors using an SPV
To find out more about SPVs, please read our blog post on Buy to let Special Purpose Vehicle (SPV) Limited Company Conveyancing.
Can I convert a larger house into flats to be rented?
Yes, you can! You will normally need to apply for full planning permission, and get your lender’s consent before you make any changes to your property. You will also need to legally split your property’s legal title at the land registry and obtain buy to let mortgages on your new rental properties. You may also choose to create new leases for the property. Our conveyancing solicitors can assist you with this. Read our blog post on splitting your property into flats to find out what you need to do.
How do I set up a House in Multiple Occupation (HMO)?
A House in Multiple Occupation (HMO), sometimes colloquially referred to as a “house share,” are popular with renters and can be a great way to maximise your property’s earning capability. However, setting up an HMO is often more complicated than renting out a self-contained flat; you may need an HMO licence and your local authority will likely have specific requirements for HMOs that could different from other areas. Make sure you read our blog post on HMO conveyancing before you get started.
How Starck Uberoi Solicitors can help
Whatever you decide to do, our specialist buy to let conveyancing solicitors can help. Our conveyancing solicitors have vast experience helping landlords with their responsibilities and our mortgage advisors can also provide mortage advice for prospective landlords in need of a buy to let mortgage. We have Law Society Accreditation under the Conveyancing Quality Scheme (CQS) in recognition of the excellent standard of conveyancing service we offer. We take a client-focused approach dedicated to making the conveyancing process as quick and easy as possible, such as by using the Starck Uberoi app and offering a comprehensive no-obligation instant buy to let conveyancing quotes for our clients’ convenience. We are also trusted conveyancers on the lender panels for the majority of high street lenders including Barclays, Halifax, HSBC, Nationwide, NatWest and Santander. For more information, please see our conveyancing pages. To book an appointment, please call 020 8840 6640 email solicitor@starckuberoi.co.uk. Our offices are located in Brentford, Ealing, London Belgravia and Canterbury, all within easy reach by public transport. Our partner, Raminder Uberoi, can also provide a Notary Public Service at any of our London offices.
