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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 [email protected]
JustMortgagesisatradingnameofJustMortgagesDirectLtd,whichisanappointedrepresentativeofOpenworkLimited,whichisauthorisedandregulatedbytheFinancial ConductAuthority.
YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.