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JUSTA GUIDE TO BUY TO LET

YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

GUIDE TO BUY TO LET

• Have you accounted for all your upfront costs? These include a deposit for the house, legal fees, stamp duty, and survey fees.

• Whatcanyoucomfortablyaffordtoborrow?MakeanappointmentwithaJustMortgagesmortgageadvisertodiscusswhatyoucanaffordtopaybackeach month before you go house hunting.

• Whatdoyouearn?YouwillneedtotellusandconfirmittypicallywithyourlastthreemonthspayslipsandyourP60taxcertificateforlastyear.Ifyouareself-employedweneedtoseeyourtradingaccounts for the last three years.

• Howmuchrentdoyouexpecttoearnthroughtheletting of the property?

• Howmuchwillyoubeabletoborrow?Whenwefullyunderstandyourcurrentincomeandexpenditureweshallbeabletotellyou,basedontherepaymentsyoucanaffordtomake.

• Which mortgage suits your present and future needs?Yourmortgageadviserwillspendtimediscussingthiswithyoubeforeprovidingyouwithfull advice and recommendation on a suitable mortgage for you.

FINANCING YOUR PURCHASE

Aswellasyourmortgagepayments,youmayneedtocoverthefollowingcosts:

• Buildings insurance.

• Contents insurance (if your property is furnished).

• Maintenancecosts.

• Periodswhenyouarereceivingnorentalincomebecause the property is empty or the tenants havefallenbehindwiththeirpayments.

• Increasesinyourmortgagerepaymentsduetoariseininterestrates,whichyoumaynotbeabletorecover immediately from rent increases.

• Theprofitsfromrentingpropertyaretaxablebutyoumaybeabletooffsetsomeofthecostsyouincur as a landlord against tax.

Youwillhavetopaythefollowingtaxes–IncomeTax,StampDuty(whenyoubuyyourproperty)andCapitalGainsTax(whenyousellit).Theremayalsobealiabilitytoinheritancetaxwhenyoudie.

Youcanfindoutmoreaboutthetaxtreatmentofincomefromrentedpropertybyseekingprofessionalguidancefromaqualifiedtaxspecialistandyoucanalsovisitwww.gov.uk/browse/tax.

HMRevenueandCustomspracticeandthelawrelating to taxation are complex and subject to individualcircumstancesandchangeswhichcannotbe foreseen.

CALCULATING YOUR COSTS

MostBuytoLetMortgagesarenotregulatedbytheFinancialConductAuthority.

GUIDE TO BUY TO LET

CHOOSING THE RIGHT PROPERTYNowyouknowwhatyoucanafford,youcanbeginyoursearchandJustMortgageswillbepleasedto refer you to one of their colleagues from the Spicerhaart Group estate agents.*

• Youneedtocarefullyresearchtheareawhereyouwanttobuyyourproperty.Youcaneitherdothis yourself or employ a specialist letting agent tohelpyou.Ifyoudecidetodoityourself,youwillneedtospeaktolocalestateagents,employersand the local authority.

• Familieswillhavedifferentneedstocouplesand single people. The majority of tenants are workingprofessionals,oncompanyoroverseasrelocations.Youneedtomakesuretheyarefullyreferenced.Ifyouareusinganagentmakesureyouknowtheprofileofthetypeofpersonthatyouwishtoletyourpropertyto,atthesametimeyou need to be mindful that the tighter you are withyourrequirementsthelongeritcantaketofindatenant.

• Desirablepropertieswillbeconvenientlylocatedto public transport, shops, bars, schools etc and haveparkingfacilitiescloseby.Whenyouarelookingforaproperty,trytorememberthatitisnotyouwhoisgoingtobelivingthere.Lookatitwithanobjectiveeyeandthinkaboutthepropertyfromatenant’spointofview.

• Youneedtoconsiderbuyingapropertywhosesizeisattractivetopeoplelookingforrentedaccommodation in that area.

• Apropertythatiswellmaintainedwillbemuchmoreindemandthanonethatisrundown.ThereforeanewerpropertymaybemoresuitableifyouhavelimitedtimeornointerestinDIY.

*The Estate Agency services promoted here are not oftheOpenworkpropositionandareofferedinourownright.OpenworkLtd.acceptsnoresponsibilityfor this aspect of our business.

YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

MostBuytoLetMortgagesarenotregulatedbytheFinancialConductAuthority.

Makeanappointmentwitha Just Mortgages Adviser to discuss whatyoucanaffordtopaybackeachmonth before you go house hunting.

Whenyouhavechosenyourproperty,youwillneedtodecidewhowillmanageitforyou.AskyourJustMortgagesadvisertoputyouintouchwithaLettingsspecialistfromtheSpicerhaartGroup*whocanoffersuitableserviceswhichcanhelpyourlettingexperience run as smoothly as possible.

• Youraimwillbetocoveryourcostsandmakeaprofit.ItisagoodideatotalktoaMortgageAdviserbeforeyoulookforpropertiesaslendingcriteriawilldifferandrentalchargesareakeyfactor.Researchthemarketconditionsthoroughlyaschargingtoohigharentwillputoffprospective tenants.

Ifyoudecidetomanageityourself,youwillberesponsiblefor:

• Findingtenants.

• Checkingtenants’references.

• Writing a tenancy agreement.

• Collecting the rent.

• Maintainingthepropertyandanyfurnitureprovided.

• Dealingwithanyproblems.

• Carry out repairs to the property.

• Ensure the safety of gas and electrical appliances.

• Ensure that any the furniture and furnishings meetfiresafetyrequirements.

GUIDE TO BUY TO LET

MANAGING YOUR PROPERTY

*TheLettingsandPropertyManagementservicespromotedherearenotoftheOpenworkpropositionandareofferedinourownright.OpenworkLtd.accepts no responsibility for this aspect of our business.

JAN18

To contact Just Mortgages call 0345 2185211, visit justmortgages.co.uk or email info@justmortgages.co.uk

JustMortgagesisatradingnameofJustMortgagesDirectLtd,whichisanappointedrepresentativeofOpenworkLimited,whichisauthorisedandregulatedbytheFinancial ConductAuthority.

YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.