We offer friendly, practical advice on:

• Choosing the right investment property
• Buy-to-let mortgage options
• Your legal responsibilities as a landlord
• Selling a buy-to-let property
• Dispute resolution services

Considerations When Buying or Selling a Buy-to-Let Property – Selecting the Right Property

When purchasing a buy-to-let property, you need to consider different factors than if you were buying a family home. You will not be living in the property, so personal preferences like kitchen style are irrelevant. Instead, focus on your ideal tenant, the return on your investment, and the property’s future resale potential.

Location is crucial. If you’re targeting long-term tenants such as families, consider proximity to high-performing schools, local shops, parks, and leisure facilities. If your target market is young professionals, look for areas offering vibrant city living with access to cafes, nightlife, and public transport. Defining your target tenant early will help guide your property search effectively.

Buy to let mortgages

House prices are on the rise again and interest rates remain low, making property an attractive investment. However, it’s essential to carefully work out your costs and build in plenty of financial wiggle room. Always budget with the assumption that your buy-to-let property may be vacant for up to two months of the year, this provides a healthy buffer to cover mortgage payments during void periods, potential interest rate increases, or unexpected repairs.

Typically, lenders will require a 25% deposit (sometimes more) and expect rental income to cover at least 125% of the monthly mortgage payments. An arrangement fee may also apply.

It’s crucial to speak with a mortgage broker who can assess your situation, help you understand the full financial picture, and guide you to the most competitive products on the market. Don’t forget to shop around and compare rates to get the best deal.

Your responsibilities as a landlord

As a landlord you will have certain legal responsibilities to ensure your buy to let property meets certain health and safety standards. For example, you need to ensure all gas and electrical equipment supplied with the house is properly installed and maintained and fire regulations are met. The tenants deposit must also be lodged in a government approved scheme. You will also need to ensure all repairs are done to keep the property in a reasonable condition. Finally, remember the income you receive from your buy to let as rent is taxable so ensure you have tax planning in place to manage this efficiently.

Selling your investment property

You will be liable for Capital Gains Tax if you sell your buy to let for a profit. An annual, tax-free allowance of capital gains is provided for each tax year and you can deduct some of the expenses incurred from buying, improving or selling the property. Capital gains tax is currently charged at 18% or 28% of the profit made on the property.

Disputes Resolutions

Unfortunately not all landlord-tenant relationships run smoothly. Sometimes disputes happen. Prevention is better than the cure; make sure you vet your prospective tenants thoroughly by obtaining a credit check, references and employment details. Having a detailed tenancy agreement which has been overseen by a lawyer can also protect you from future problems.