For many people, buying their home is likely to be the most important and expensive purchase they will make, and will be their only venture into the property market. However, an increasing number of people are now investing in property other than for personal occupation, by buying residential property to let out to tenants.
The potential return on this investment can be attractive, both in terms of income and capital growth. Independent reports have previously suggested that property has beaten other investments, outstripping the UK Stock Market, Building Society savings accounts, gold and even vintage wines. Additionally, lenders see buying to let as relatively secure, and are increasingly offering potential purchasers/investors tailor made mortgage packages.
There is, however, a downside to be considered. Landlords of residential properties have clear responsibilities which cannot be passed to tenants. Furthermore, whilst potential income available from letting property can seem attractive compared with the cost of borrowing, and compared with income through other investment options, it is important to remember that to enjoy an income from the property, it is necessary to have a tenant – if a property is unlet and therefore non income producing, mortgage payments on the original borrowing still have to met.
In order to maximise the potential benefits of buying to let and to appreciate the potential risks involved, access to sound and professional advice is important. Band Hatton Button has many years experience in handling the legal aspects of property work, including purchase and residential letting, and we have created a tailor-made buy to let legal package for our clients.
The combination of sound and professional legal advice, which is accessible and personal in its nature, is the cornerstone of the service which we seek to provide. We try to build a good working relationship with you as our client.
We will keep you informed of what is going on throughout the transaction, but if there is anything you are not certain about, do please tell us. It is very important to us that you are completely clear on what is happening at all times. We also see our role as your Solicitors as wider than the legal process itself. As experienced professionals in the property field, we can provide invaluable guidance in connection with a number of other related aspects of your buy to let purchase, such as the right type of survey for the property you are buying and the choice of a surveyor to carry out the work, and the choice of a managing agent (if you do not propose to manage the property yourself). In the event of you experiencing problems with your tenant, we also provide a comprehensive debt recovery and possession service.