buy to let mortgages

Buy to let Property Type

Information on this site is for information purposes only. It is not intended as investment advice

Property Type

If you are buying to let, then you will need to consider the property type. Are you looking for a flat or a house?

Considerations in the choice of property

  • A 2 bedroom property will be easier to let/sell than a one bedroom property.
  • Consider the rent/mortgage cover for each property type.
  • Where is the demand – where do tenants prefer to live?
  • If there is a garden – who will look after it?
  • What is the maintenance bill likely to be?

Looking at each item in more detail

The more bedrooms you have to offer, the wider the appeal. More rooms generally means more rent.

The rent/mortgage cover. This is perhaps the most important consideration. By how much does the rent cover your mortgage payment.

If the rental income will only just cover the mortgage payment then you will not be able to build up a fund to cover you for periods when the property is empty. If the market rental income is insufficient then you may find it difficult to get a mortgage.

Where do tenants prefer to live. This is best answered by a letting agent who will have extensive experience of letting in the area you are considering.

A large garden may be a huge plus to a gardener, but if left unkempt, could develop into an ongoing problem. You could employ a gardener but this will be another outgoing to contend with.

You can budget for mortgage payments and other regular outgoings. It is less easy to predict repair and maintenance costs.

As a landlord you will be responsible for repairs and maintenance issues. Tenants are likely to demand a swift response when things go wrong. A modern central heating system is likely to be less of a problem than an old system.

If your property is thatched then you should budget for re-thatching perhaps every 10-15 years at a cost that could exceed £10,000. If you buy a property with a flat roof then the flat roof will need replacing over a similar length of time.

Wooden windows will need regular maintenance if they are to last. Such maintenance will need to be considered .

Energy Performance Certificates (EPC)

You will need to obtain an energy performance certificate for each property you let. This certificate will need to be handed to the tenant at the onset of each tenancy.

An energy performance certificate is provided by a surveyor who will assess the energy rating of your home.

The certificate will give estimates of energy usage and ways of reducing energy usage

The certificate will contain an energy performance rating of A (good) to G (poor)

Currently landlords should maintain an energy rating of at least E. We recommend you read the guidance as there are exclusions and exceptions that may apply

The government have proposed that all rental properties will need an EPC rating of ‘C’ or above by 2025

Check if your property already has an EPC certificate

This certificate will need to be renewed every 10 years