Buying a property – buy to let

One of the biggest purchases the average person will ever make in their lifetime is the purchase of a property, whether that is a house or a flat. Because of the size of this type of purchase, and the legal formalities which need to be complied with, this can turn into a lengthy, costly process, which in itself can raise a number of property law issues.

Further complications can arise where the property in question is not being purchased as a residential home to live in, but is instead bought with a view to invest.

Due to the complexities surrounding property transactions, most people will need to obtain the advice of a solicitor who specialises in property conveyancing.

Purchasing a Property

One of the first steps any buyer will have to go through, whether they are buying to live in or buying to let, is how much they can afford to spend. Despite the fact that you may be selling your existing home, and may have some money saved up, the likelihood is that nowadays most people will not be able to purchase a home without also obtaining a mortgage.

One aspect of conveyancing that many new buyers overlook is that the cost does not just lie with the purchase price. Buyers need to also take into consideration extra fees which will be payable such as stamp duty, removal services, solicitor’s fees, agent’s fees etc.

Negotiating a contract which suits you is a very important aspect of purchasing a property. For example, are you going to be the sole owner of the property? Or are you going to co-own the property with someone else? If so, are you going to hold the equitable interest together as joint tenants (which means that that interest will not pass with your estate on your death), or as tenants in common (where it will)? Property searches will also need to be carried out to ensure that there are no other interests held in the property, so that should you decide you want the property you can buy knowing you are not bound by anyone else’s interests.

Purchasing to Rent aka buy to let

It is all too easy to get carried away with advertisements that claim that buy to let properties will bring you in a guaranteed income every month (because of their apparent popularity and therefore their easiness to be rented). It is important to work out the figures for yourself, and to take the figures an agent gives you with a pinch of salt – they are, after all, trying to sell you the property in the first place.

As well as a mortgage, and any repairs that need to be done to the property, prospective buyers in this category will also need to take into account landlord’s insurance.

Buyers should also not be under the impression that they will be buying the property, filling it with tenants, and then their responsibilities will stop there. Becoming a landlord brings with it a vast array of legal responsibilities, including carrying out inspections on the property (not just initially, but at regular intervals after that). The landlord will also be responsible for collecting rent, managing tenants, and keeping up to date with health and safety obligations.

Becoming a landlord can be stressful, as it is not often they are gifted with perfect tenants. Especially when landlords have other full-time jobs, managing properties can take up a lot of time and resources, and therefore should not be entered into lightly.

  • Call back

    [contact-form 4 "callback"]
  • Blog categories

    • No categories
  • Archives