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Buy To Let at a glance

Owning a Buy to Let property isn’t like buying your own home; it’s more like running a small business. So it’s important to do your homework to ensure you buy the right property, in the right place to give you the best possible chance of success.

Researching

Talk to your letting agents about levels of demand and likely rental income before deciding on a location. Choose a property that matches your ideal tenant. Appoint the letting agent to collect rent, find tenants and deal with routine problems.

Budgeting

When you’ve found the right property, work through the figures carefully to ensure the project is feasible. Our Independent Mortgage Advisers, Botterill Saw & Associates will help you with all this preparatory work and ensure that you have the most suitable Buy to Let mortgage to help you purchase the property. Contact them via Rooftops, or directly on 0161 485 3226 and they will help you either face to face at their office in Bramhall or at your home or simply on the telephone if you prefer. In addition to your mortgage repayments, consider the other costs you’ll need to cover such as stamp duty, solicitors’ fees, insurance, furniture & fittings, service charge and ground rent for leasehold properties, together with ongoing maintenance and repairs. Also, don’t forget to consider how you will pay your Buy to Let mortgage if either interest rates rise or the property is vacant.

How much can I borrow?

On a Buy to Let mortgage you are normally able to borrow up to 85% of the property value, although better rates can be obtained if you find a larger deposit. Rates are naturally higher than on a residential mortgage but are currently available from 2.99%.

Legal considerations

Before you rent out a property, check your legal responsibilities. For example, under no circumstances should you rent out a property without an appropriate tenancy agreement/lease in place. This is important as it is a legally binding document that sets out the legal rights and responsibilities of both the landlord and the tenant(s). As a landlord you have a ‘duty of care’ to make sure your Buy to Let property and any utilities provided are entirely safe for tenants. Some of the areas you need to consider are gas & electrical safety checks and adherence to fire regulations. Rooftops will take care of all this.

The Tenant

In a Buy to Let business one of the most useful assets and also one the major problems can be one and the same, i.e. the tenant. We have all seen the TV programmes showing dreadful tenants who never pay the rent, refuse to leave the property and when finally forced out by the court destroy the house. On the other hand a good tenant will look after the house and the garden, treat it as their own, pay the rent on time and give proper notice when they wish to move on.

The Letting Agent

By choosing a good letting agent you should be able to secure the good tenant. At Rooftops we credit check and fully reference all applicants and take the relevant deposits. We also utilise a rent guarantee scheme whereby should the tenant be unable to pay, the insurance company will take over the rental payments after only one month.

Please contact your relevant Rooftops office to enquire about Buy To Let services:

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