What is buy to let?
Buy to let refers to a property that is purchased with the intention of renting it out to tenants. It’s a popular type of investment in the UK due to the potential for long-term capital growth and rental income.
However, it differs from a regular residential transaction. You’ll need a particular mortgage, known as a buy to let mortgage, and this comes with different conditions to that of a residential mortgage. You will also take on more legal obligations in your role as a landlord, from arranging tenancy agreements to property licensing.
It’s important to have a specialist buy to let solicitor to ensure your transaction goes through as smoothly as possible. At FJG, our team will handle your transaction with care, so you can proceed with confidence.
Our buy to let legal services
We offer a range of buy to let services that support landlords and investors throughout the process, whether you’re purchasing your first property or used to managing a whole portfolio. We’re here to help you handle the legal side of your transaction so you can continue with confidence.
- Buy to let conveyancing: though a buy to let transaction differs from a standard, residential transaction, we can guide you through the entire conveyancing process and ensure you’re meeting all deadlines, have the right documentation in order and have your title registered correctly at Land Registry.
- Remortgaging a buy to let property: you may be looking for a better rate on your current property or want to release equity from your property; we can handle the legal aspect of your remortgage.
- Tenancy agreements and AST drafting: having a tenancy agreement that is legally sound and well-drafted is crucial for protecting you and your tenant. Our buy to let conveyancers can help draft and review agreements that set out the correct terms.
- Portfolio acquisition and management: we can offer legal support across various transactions, which is beneficial if you’re looking to expand or merge your property portfolio.
- Lease extensions on investment property: if you plan on extending your property lease, it must be noted that this can affect the overall value and ability to remortgage. We can work with you to ensure your investment is secure.
- Transfer of equity and change of ownership: we can manage the process of transferring equity or adding or removing a party from the title.
The buy to let conveyancing process
Each buy to let conveyancing case is different, and we always treat your case individually. Here is a typical process you could expect if you choose to work with us:
- Once you’ve had your offer accepted, you should instruct a solicitor. They will carry out initial checks, such as ID checks, and confirm your mortgage conditions.
- A buy to let mortgage generally comes with conditions that differ from a standard residential mortgage. Your buy to let conveyancing solicitor will review the conditions and ensure you understand them fully, flagging anything that needs attention.
- Next, they will conduct searches and raise enquiries if needed, with the seller’s solicitor. The outcome is to identify any legal issues with your property. Once the searches are complete, your solicitor will report back to you and make you aware of anything important.
- When the conditions have been met, your contracts will be exchanged, and the transaction will then be legally binding.
- On completion day, the rest of your funds will be transferred, and the legal ownership is passed over to you.
- Your solicitor will submit your Stamp Duty Land Tax (SDLT) return for you – this may include an additional surcharge for other properties you may own.
- Your transaction will be complete once your solicitor registers your ownership with Land Registry.
What should I consider before buying to let?
Being aware of the legalities of buying to let is essential before you commit. At FJG, we’ll ensure you understand every part of the legal side of a buy to let process, guiding you through each aspect.
- Stamp Duty Land Tax – a conveyancer will handle the return of your SDLT, which will apply to most buy to let properties.
- Landlord responsibilities – you will have set obligations to fulfil to ensure your property is safe and of a standard to live in.
- Tenancy deposit protection – once you have collected deposits from tenants, they must be registered with a government-approved tenancy deposit scheme. This has to be done within 30 days.
- EPC ratings and compliance – before you let your property to tenants, it must meet the Energy Performance Certificate (EPC) requirements.
- Licensing requirements – a licence may be required depending on the size or type of your property. This is particularly the case if your property is a House in Multiple Occupation (HMO).
- Existing mortgage or property ownership – if you own a property already, this can affect your eligibility when it comes to some buy to let mortgages, as well as your SDLT liability.
Why choose Fisher Jones Greenwood as your buy to let solicitors?
Whether you’re a first-time landlord who’s looking to purchase their first buy to let property, or you’ve got several properties in a portfolio already, our conveyancing solicitors have extensive experience handling a range of transactions.
We’re recognised by The Legal 500 and Chambers & Partners for our work with clients, and we understand that no two cases are the same. We’ll take the time to understand your case and always be there to answer any legal questions you may have. You’ll be kept up to date throughout the entire process, ensuring there are no surprises.
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