A Beginner’s Guide to Buy-to-Let Conveyancing

Buy-to-let conveyancing involves transferring ownership of land or a property to you which you, as a landlord, intent to rent out as an investment. Conveyancing professionals will carry out the legal and administrative work needed as part of the buying process when purchasing a property. The conveyancing professional will work with the local authority and Land Registry to obtain the correct paperwork to complete the purchase. A legal process, it begins when the offer on a property is accepted and is completed when you receive the keys.

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A Regular Rental Income Is Appealing for Landlords

A regular income can be appealing, and many people turn to a buy-to-let as an investment. However, it’s important to ensure all the relevant procedures have been followed and paperwork completed before you officially call yourself a landlord. Once the seller accepts the offer, a legal professional will come on board to make sure all the legal matters are followed.

A Landlord Will Require a Specialist Buy-to-Let Loan

The conveyancer will ensure you have taken out the correct mortgage, as you’ll require a specialist buy-to-let loan. This is a mortgage for people who intend to buy a house or flat and then rent it to tenants. Often this requires a larger deposit than a regular home mortgage, and the interest rates can be higher. Similar to a residential mortgage, a buy-to-let offers you the option of a capital repayment or an interest-only mortgage. Some landlords choose an interest-only mortgage, which means they will only pay the interest on the loan each month, with the full balance being paid when the mortgage term ends. Monthly outgoings are therefore reduced, but landlords should be aware of the amount owed when it comes to selling the property.

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According to What Mortgage, buying a property can be a stressful occasion which can be exacerbated if the conveyancing professional is not up to standard. A good conveyancing solicitor will ensure all the legal issues are resolved and completed. Buy-to-let agents who require conveyancing quotes can contact a range of professionals for advice and service, including Sam Conveyancing.

How Much Can a Landlord Borrow?

The amount that a landlord can borrow with a buy-to-let mortgage will depend on the possible rental income. The lender will require this information, and further research can be carried out online or the landlord can contact a letting agent. A number of certifications will also have to be in place before a property can be let. They include an energy performance certificate and a gas safety certificate. As well as landlord’s insurance, furniture and furnishings if already in the property must meet stringent fire safety standards. A multiple occupation licence may also be necessary.