|
BUY TO LET
Buy-to-Let is the initiative devised by the Association
of Residential Letting Agents (ARLA) and supported by eight leading
mortgage lenders:
• Halifax Mortgage Services
• Woolwich Direct
• NatWest Mortgage Services
• Clydesdale Bank
• Capital Home Loans
• First Active
• Mortgage Express
• Paragon Mortgages
It is designed to stimulate the growth of the Private Rented Sector
by encouraging private investors to take the opportunities given
by low highly competitive interest rates and the reasonable certainty
of sustained capital growth over the coming years.
Historically buyers of property to let have been surcharged or forced
to borrow at commercial rates and potential rental income has not
been taken into account for servicing the borrowings. Now the panel
of lenders supporting the Buy-To-Let scheme have brought their interest
rates into line with the rates for owner occupation and taken rental
income into account for servicing the loan. This policy switch has
been encouraged by the knowledge that professional letting and property
management agents will be involved in the selection of suitable
properties for the rental market, in the selection of tenants and
in the management of the properties. This enhances the creditworthiness
of Buy-To-Let propositions.
Through some 1200 ARLA member offices the lenders have a countrywide
network of experienced letting agents who comply with the ARLA Codes
of Practice and the ARLA training and qualification requirements
in letting and property management. ARLA members include the national
chains, the regional multiples and specialist independents, like
First Choice. Members' companies are covered by the ARLA Fidelity
Bond which is linked to required client accounting procedures and
high levels of professional indemnity cover. Through these agents
the Buy-To-Let panel of mortgage lenders are bringing a new impetus
to the Private Rented Sector and an investment opportunity as attractive
as commercial property or gilts for private individuals to add to
their investment portfolios and to consider their own private pension
planning.
The DO's and DON'T's of Buying To
Let
| DO |
Think of buying to let as a medium to
long term investment |
| DO |
Seek advice from an ARLA registered letting
agent on local market demands such as ourselves |
| DO |
Get your sums right. Will the rent cover
borrowings and costs, after allowing for void periods |
| DO |
Decorate, fit out and furnish the property
to high quality standards, especially kitchens and bathrooms,
to attract the best tenants and let quickly every time. |
| DO |
Use an ARLA member as your letting agent.
They are bonded, hold Professional Indemnity Insurance to
required standards, have been in the business for a minimum
of two years and are kept up to date with the latest legal
and regulatory requirements. |
| DON'T |
Let personal taste cloud your judgement.
Be sure the property you choose meets the market requirements. |
| DON'T |
Purchase anything with potential maintenance
problems like a lot of woodwork or large gardens. It will
add nothing to the rental value and cost a lot to keep up. |
| DON'T |
Think that the running of an investment
property can be left to friends or relatives in your absence.
Tenants require a full management service. More and more tenants
are looking to ARLA member agents to let from. |
Further information on the Buy-To-Let Scheme can be obtained from
the First Choice office by emailing us on info@firstchoicelettings.co.uk
or by fax or telephone
|
|
|
| To search for a property simply select from the following
options and click 'Search'... |
| |
|
