Buy To Let

Using rental income to fund mortgages can be a profitable way of investing in property. As a commercial enterprise, buy-to-let offers real opportunities, provided the right property is chosen and the rental arrangements are set up and run properly.

At Glanvilles, our experienced buy to let lawyers will assist you in the acquisition of your property and help you avoid any potential hazards in the rental process.

A buy to let property can be a one-off purchase by an investor, or part of a large portfolio of homes owned and managed by an individual or property company. However big or small the investment, it is important to understand the fabric of the building and its environment before committing to a purchase by looking at:

The current value of the property
The potential for an increase in value
The rental market in the area

Once you decide you are happy to go ahead with a purchase, you can pass our details to the estate agent if you would like us to represent you.

We have extensive expertise in buy to let conveyancing and we will work proactively to complete as quickly as possible. Should any complications arise, we have the legal knowledge and experience to handle them promptly and effectively.

We will keep in close contact with you throughout the purchase process, ensuring that you know what stage has been reached and whether we need anything from you.

Our buy to let services include:

Checking the legal title to the property
Carrying out searches
Raising enquiries with the seller’s solicitor
Reporting to you on the property and highlighting any areas of concern or unusual elements
Certifying to your lender that the property has an acceptable legal title
Liaising with the seller’s solicitor as to completion
Providing you with a financial statement
Exchanging contracts
Completion
Registration of your purchase and mortgage with HM Land Registry
Preparing tenancy agreements and leases
Advice and representation in recovering rent arrears
Evicting tenants
Landlord and tenant dispute resolution
Buy to let sales

We provide a bespoke service for landlords at all stages of the buy to let process.

Get in touch with our buy to let lawyers in Chichester, Fareham, Havant and Petworth

Contact our expert buy to let lawyers in Chichester, Fareham, Havant or Petworth or fill in our simple online enquiry form for a quick response.

The Glanvilles guide to UK buy to let property transactions

What’s the difference between a buy to let mortgage and a residential mortgage?

If you are buying a property to rent to tenants and you need a mortgage, you will need to apply for a buy to let mortgage, rather than a residential one.

Landlords often choose interest-only mortgages for buy to let properties. This means that the monthly payments are lower. At the end of the mortgage term, the whole of the loan will still be due. This is usually paid off by using the sale proceeds.

The percentage of the purchase price that you need to pay is usually higher with a buy to let mortgage, generally starting at 25%, meaning you can only borrow 75% of the purchase price. A lower interest rate is likely to be available if you can pay 40% of the purchase price or more.

The lender will require you to earn a minimum salary, often around £25,000, and will also usually take into account the likely rent that you will achieve.

Mortgage interest rates are higher on buy to let mortgages than on residential mortgages.

Why are buy to let mortgages more expensive?

Mortgage lenders consider buy to let loans to be at a higher risk of default than residential property loans. If a landlord is left without a tenant for a period of time, they may be unable to make the monthly payments.

How does stamp duty work for buy to lets?

For a buy to let property, there is usually an additional 3% payable in Stamp Duty. This is on top of the standard rate of Stamp Duty that would be payable if you were buying a residential property and it was your only home. By way of example, if you buy a second or subsequent property costing between £250,001 and £925,000, you will pay Stamp Duty of 8% - this is 5% as for a single property plus 3% extra as it is an additional property.

What are the legal requirements for a buy to let?

As a landlord, you need to be aware of a wide range of rules and regulations. These include:

Carrying out right to rent checks on potential tenants
Providing the tenant with the How to Rent Guide
Keeping the property in good repair and condition
Providing the tenant with an Energy Performance Certificate
Having smoke alarms and carbon monoxide alarms installed and tested
Adhering to fire safety regulations, including having fire-safe fixtures, fittings and furniture
Having gas and electricity installations checked and certified as safe and providing the tenant with a copy of the gas safety certificate
Placing the tenant’s deposit in a deposit protection scheme
Paying tax on your income
Paying National Insurance if you class your work as a landlord as a business
If the property is a house in multiple occupation (HMO), obtaining a licence from the local authority if necessary and complying with HMO regulations

What conveyancing checks are needed for a buy to let?

As well as the standard conveyancing checks that are carried out for any property purchase, we will carry out additional checks if you are purchasing a buy to let property. This will include:

Checking the title to see whether there are any legal restrictions on letting
If the property is leasehold, checking whether the lease prohibits letting
If the property is leasehold and the landlord’s consent is required to letting, requesting this
Requesting copies of existing electrical and gas safety certificates if the property is currently let
Checking that the property complies with planning consents and that the seller provides building regulations approval for any alterations

How we deal with buy to let transactions

We work with purchasers to assess a property's potential in the context of their overall objectives. Through searches and an examination of title deeds and existing tenancy agreements, we will establish any risks associated with the property. If there are no major concerns, we will help with funding arrangements, advise you in your dealings with lenders and help you comply with your lender’s requirements.

When it comes to putting the right legal documents in place, our buy to let team works quickly and thoroughly to negotiate terms, formalise these and protect your interests. We will draft tenancy agreements to give you the security and flexibility you need and advise you of your obligations as a landlord, including health and safety, building regulations and multiple occupancy issues. We will always be on hand when you need us to deal with any ongoing property management issues that may arise.

Why choose Glanvilles’ buy to let lawyers?

Our buy to let lawyers offer:

Legal expertise in the complex area of buy to let property
Advice on related issues such as landlord and tenant disputes and tax liabilities
Experienced representation in buy to let sales and purchases
A clear quote and excellent value buy to let lawyers fees – we will give you an estimate of the buy to let conveyancing costs at the outset, including all additional expenses such as search fees and Stamp Duty

For more information in respect of our services, see our residential property lawyers conveyancing page.

The Glanvilles’ client service promise

When you use our domicile and residence service, we promise:

Our staff will be friendly, respectful and attentive.
Your concerns will be listened to, your questions answered, and your options explained in plain English.
The cost of dealing with your requirements will be made clear to you from the outset.
We will answer your phone calls and emails promptly.
We will keep you regularly updated at all times.

Get in touch with our expert buy to let lawyers in Chichester, Fareham, Havant and Petworth

Contact our highly experienced buy to let lawyers in Chichester, Fareham, Havant or Petworth or fill in our simple online enquiry form for a quick response.