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Buying a buy-to-let investment property is not as straight forward as buying your own home. You will need to seek advice from a lettings agent who really understands the local market before making a commitment.
In addition, a proactive lettings agent can assist in finding and vetting suitable tenants. After all, the rental property is an investment. You don't want the worry of whether or not the rent is going to be paid on time, if the tenants are looking after your asset and if they will leave the property in a fit state at the end of the tenancy.
In addition to finding a suitable tenant, a good lettings agent can provide a comprehensive property management service to ensure that your property and your tenant are looked after to the highest standards.
Typical property management includes tasks such as collecting rent, handling all administration issues and assisting with more complex issues that should arise. They can even recommend decent and competitive tradesmen and suppliers should you need work doing to your property.
Below is a list of some of the responsibilities associated with being a landlord.
A property management service can take on these tasks for you, leaving you free to sit back and watch your investment grow.
Aside from your monthly mortgage payments, there are many ongoing costs associated with being a landlord.
These costs can arise unexpectedly and you must have provisions in place to cover them.
In addition, you need to consider how you will cover mortgage payments should the property lie vacant for a period time.
Tax will be charged on income received from rental properties after allowable expenses are deducted. However, you are eligible for tax relief on the following:
For more information on tax implications of renting property, you can contact your local tax office for a copy of the Inland Revenue Property Income Manual (PIM).
| DO | Ask the advice of a local letting agent on local rental market demands. |
| DO | Consider a buy-to-let property as a medium to long term investment. |
| DO | Furnish and decorate to a high standard. Good quality bathrooms and kitchens will attract the best tenants and help minimise void (un-tenanted) periods. |
| DO | Make sure your sums add up. Ensure that the rent will cover mortgage payments and other costs associated with being a landlord (see the section titled 'additional costs to consider when letting property' for further information). |
| DON'T | Buy anything with intensive maintenance problems (for example, large gardens will add little to the rental value but will cost you a lot in time and money to maintain). |
| DON'T | Allow your own personal taste to influence your decisions. Ensure the property you choose matches the local market needs. |
| DON'T | Use off-the-shelf tenancy agreements and other legal paperwork. Ensure your paperwork suits your circumstances and always seek the advice of a professional. |
| DON'T | Forget to issue the right documents or carry out a proper inventory report before your tenant moves in. |
| DON'T | Use second hand furniture or old soft furnishings as these may not abide by the Furniture and Furnishing Regulations. |
Your property may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.
Top Mortgage Solutions UK Ltd are independant mortgage advisors and as such offer mortgage advice from the whole mortgage market place. We may charge a reduced fee of up to 1.00% of the loan amount, as we are paid fees from lenders. However, we will offer you the option of paying our full fees which are 1.5% of the loan amount and you will recieve the procuration (commission) fee from the lender.
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Top Mortgage Solutions UK Ltd is an Appointed Representative of Mortgage Next Network Limited which is authorised and regulated by Financial Services Authority in respect of mortgage and insurance mediation activities only. Mortgage Next Network Limited is entered on the FSA register (http://www.fsa.gov.uk)
under reference 300866.
Buy to Let Mortgage Sussex