Buy to Let Mortgages

What are the best Buy to Let mortgages tips? Information & Advice.

Buy to let mortgages are never hassle free, but these tips should help you make it a little bit easier.

* Find out what your price range really is by working out how much you have available to use as a deposit. Take the lump sum you have then subtract the cost of fees for valuation and solicitors, surveys and furnishing the property, in addition to stamp duty. Lenders will finance up to 80% of the cost of the property, so multiply what you have left for the deposit by 5 and that's what you can afford.

* The local estate agent will know what kinds of property are most likely to be rented and what kind of rent you can expect. Ask them, and choose accordingly.

* Once you know the rental yield you can expect, you can apply for acceptance in principle for a mortgage, producing the rental yield and your salary details.

* You will be responsible for maintenance, so should the property you want to buy be quite old you should commission a full structural survey, or at least a homebuyer's report.

* Provide your solicitor with details of the property, the seller, your lender and the estate agent. The lender will value the property and will agree the mortgage should everything be in order. Your solicitor confirms the title deeds are legal and carries out the local authority search. They will draw up the contract and send you the legal paperwork

* Arrange buildings insurance if the property is freehold.

* You should then pay the deposit, return the signed contracts and wait to be told that the solicitors have exchanged contracts and set a completion date. You are now legally committed to the sale.

* Get quotes for renovation or building work so it can get started ASAP. The builders and decorators should be got in as soon as you can after completion. Just before the work is completed get tenants in to look at the property.

* Suitable tenants must supply you with bank, employer and personal references. You shouldn't take the property off the market until you check the references and the holding fee is paid.

* You should ask for one month's rent as a deposit. Give the tenants your bank details should they wish to pay by standing order.

* Make sure that the property meets health and safety regulations and draw up an inventory and a tenancy agreement.

* Contact utility companies and the council so that all bills will be in the tenants names.
* Once they have signed the tenancy agreement and the inventory and you have the one month's rent in your hands, hand the tenants the keys.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

© AskFinancially.com 2009

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