New to letting out property? There are many questions that arise for first time landlords, even before you have selected the property itself. Because of this, Complete Residential Lettings have put together some answers to the more common Buy to Let questions that cover the whole process. Right from selecting and obtaining your ideal Coventry property to the final stage of moving your tenant in and collecting rent.
What kind of property should I consider?
When considering a property to purchase you need to consider whether it will suit your needs as well as being an attractive rental property. Consider the location and what kind of properties will rent faster and which will bring in more overall benefit. Which you choose depends on your personal goals for the property. For further advice speak to your letting agent about properties that are best and more likely to work for you.
Can I live in a Buy to Let property?
In most circumstances, no. You cannot live in a property that has been purchased using a Buy to Let mortgage. As a majority of these purposefully state that the owner cannot live in the property in question themselves. Much like standard mortgages do not allow rentals to take place. Living in your property regardless of this could end up invalidating your mortgage completely. However there are exceptions to the rule if you have paid off your mortgage completely, the property is usually yours to do with as you please.
What is a Buy to Let mortgage?
Buy to Let mortgages are in place so that landlords can take them out on a property that they want to let out. This kind of mortgage gives you the ability to rent out the property before you have paid everything off and can be opened as long as you already own your own property. A Buy to Let mortgage will usually come with higher fees and interest rates as well as a few more differences compared to a standard mortgage. But overall they feature a lot of the same rules.
Difference between buying a flat and a house to Let?
The key difference to keep in mind when purchasing a flat to rent rather than a house, is that the whole property will not be yours. You may be required to pay additional fees such as service charges and ground rent. As well as any extra expenses that vary depending on the specific property location and grounds. Repair costs will also differ between the two, as it changes who is in charge of larger repairs such as roofing. Be sure to check these kinds of responsibilities before purchasing a property, whether it be a house or a flat.
Do you have to pay tax on Buy to Let property?
Yes, in the UK stamp duty land tax will always have to be paid on your Buy to Let property. The amount of tax that you pay will vary depending on your properties value and location. Currently anywhere between 3% and 15% can be charged, dependent on your property value. However, this will vary further in different locations such as Scotland and Wales, where different fees and charges are required.
What do I do if my tenant stops paying rent?
If you rent is definitely overdue from your tenant, you have the right to get in touch and question the missing payment. As a letting agents, where a fully managed contract is set up with us, Complete Residential Lettings will be in touch with your tenant and resolve this issue for you. However if managing the property on your own you will need to contact them on your own accord and where applicable involve their guarantor to notify them of late payments. Overall the goal is to try to find the reason for the issue and resolve the situation in a way that suits both you and the tenant.
Who is responsible for major repairs to by Buy to Let property?
This depends on what kind of major repairs you are referring to. Generally as the leaseholder, you are usually responsible for any repairs that are required internally. Such as plumbing or standard damage repairs. However, the freeholder, whoever has management over the land that the property is on, is responsible for exterior repairs such as roofing and windows. You will need to check who freeholder responsibilities fall to when purchasing your property.
Still have more questions about Buy to Let property?
Get in touch! We are here to help with any queries you may have. Contact Complete Residential Lettings on 024 7667 9333