Property Buying Guide
Buy to Let Advice: Finding a Suitable Property
If you are considering a buy to let property as a means of getting onto the property ladder, it is likely that you are unable to afford to buy in your own area. Chances are that if you are looking to buy in a cheaper area further afield, it is in a location that you are relatively unfamiliar with. You will need to carefully research both the property and the area and you will need to find a reliable and competent letting agent to manage it for you.
Remember when looking that it doesn't matter if the buy to let property isn't the type that you would choose to live in yourself, it is more important that it is the type that is popular for renting in the area.
Talk to local estate agents and letting agents to find out the amount you can expect to get in rental income and the type of property that is most likely to be let easily
Decide who you are targeting: families, professionals, students, and make sure the property you are interested in buying is appropriate for them. Two-bedroom flats and houses are popular with young professionals and so there is likely to be a strong demand for these. For individuals sharing a property or for a family, two bathrooms would be an asset. A third bathroom might make the property more expensive to buy without necessarily adding to the rental income.
Check out transport links, schools, the location of large employers and local amenities.
Is there garaging available, or off-road parking, or is there parking nearby?
If you're targeting families you will need to check how busy the road is.
To avoid high maintenance costs and for easier upkeep, it would be wise to look for something modern. If you choose an older property, commission a full structural survey and a Homebuyers' Report. Large gardens will require a high level of maintenance, so should be avoided.
Provided you can prove the amount of rent you will achieve, the type of property will not affect your chances of getting a mortgage, although if there is work required before it is suitable for letting, the lender may impose restrictions. Your full loan will be given once the lender's valuation officer is satisfied that the work has been completed. You need to be aware of the possible delay in getting rental income while work is carried out and the impact that this will have on your ability to meet mortgage repayments.
More buy to let advice:
Buy to let – for first time buyers and everyone l How much can you borrow? l Buy-to-let mortgages l The tax situation l The hidden costs l Your responsibilities as a landlord l Letting agents l Tenants l Furnished and unfurnished properties l Buy-to-let useful websites l Buying Property Abroad
Useful Links:
www.arla.co.uk
www.cml.org.uk/
www.landlords.org.uk/
www.direct.gov.uk/
www.rics.org.uk/
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