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When you are deciding on a type of Buy to Let property, it is important to consider the value of the property as well as the amount of rent that can be realistically attained.
Areas that display a high demand for rented and owner occupied properties are usually your best bet – although they will probably cost more to buy. It is also worth noting that some of the best deals on a Buy to Let property mortgage is usually given to higher value mortgages.
Types of Properties
ideal for Buy to Let mortgages:
Quick Links: Houses
| Flats | Blocks of Flats | HMO’s
Houses
Houses that can be shared could offer a very favourable
return.
For example, you can expect a high demand when letting to students (ensure that you buy in ‘student’ areas for the best returns – local estate agents will be able to help). You should also be aware that when letting a house to many tenants, you could incur more maintenance costs or management issues/problems.
Letting companies or housing associations also take on houses to let, although you would need a different type of tenancy agreement if you wanted to let your house in this way.
Flats
Some flats can offer a very high demand for lettings –
especially if they are within walking distance of a city centre
or railway station. If you are thinking of a flat, it is important
to consider other costs that can come with such a purchase: budget
for ground rent and service charges. Permission from the freeholder
to let the flat will also be needed.
Blocks
of Flats
A block of flats can offer a number of options aside
from letting, including re-sale and creating leaseholds. Another
advantage is that you can also control ground rent and maintenance
charges.
HMO’s
(Houses in Multiple Occupation)
This usually refers to flats and bed-sits that
have shared facilities and rent is usually charged per person
and is
sometimes DSS funded.
However, this is one of the least popular choices with the Buy to Let market as most people do not want to associate themselves with this kind of tenancy. HMO’s can generate a good type of income, although you should be prepared for regular tenant changeovers and the need for regular refurbishment.
For information on the right mortgage for you please call us on
0800 052 3604 or Click
Here to fill in our enquiry form.
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The guidance and/or advice contained within the website is subject to the UK regulatory regime and is therefore primarily targeted at customers in the UK.
Homebank Financial Services Limited is an appointed representative of The Willow Tree Management Company UK Ltd which is authorised and regulated by the Financial Services Authority.Think carefully before securing other debts against your home.
Your home may be repossessed if you do not keep up repayments on your mortgage or other loans secured on it.
For mortgage related services the fee will typically be 1.79% of the mortgage advance applied for, minimum fee of �750. In addition, there may be a valuation administration fee of up to 0.7% of the loan amount. For example if you take out a loan of £50,000 you will need to pay a total of up to £1,245; comprising of the broker fee of £895 and the valuation administration fee of up to £350. This in addition to any commission we may recieve from the lender. Broker fees may be added to the mortgage.
Not all Buy To Let mortgages are regulated by the Financial Services Authority
Adverse Credit - The overall rate for comparison is 9.2% APR. The actual rate available will depend upon your circumstances. Ask for a Key Facts Illustration
Right To Buy Mortgages - The overall rate for comparison is 8.9% APR. The actual rate available will depend upon your circumstances. Ask for a Key Facts Illustration
CURRENCY MORTGAGES - CHANGES IN THE EXCHANGE RATE MAY INCREASE THE STERLING VALUE OF YOUR DEBT.
Homebank Financial Services Limited is entered on the FSA register under reference
number 464724, as an appointed representative of The Willow Tree Management
Company UK Ltd, who are also registered under the FSA register under reference
number 310569.
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