Ensure you thoroughly research a prospective property and seek advice from local letting agents, we can help recommend some excellent ones, regarding its suitability for letting, level of current demand and anticipated rental income.
Factor ‘hidden costs’ such as solicitors’ fees, stamp duty, letting agency and management fees, building insurance, ground rent/service charge for leasehold flats, maintenance/repairs to the property, into your calculations.
Consider the implications on your tax affairs.
We recommend that you consider taking professional tax advice from an accountant or discussing with your tax office, again we can recommend tax specialists who we work with.
Make provisions for how you would make your monthly Buy to Let mortgage repayments in the event of your Buy to Let property being empty, your tenants failing to pay or if interest rates rise.
From 1 April 2016, Stamp Duty Land Tax is an extra 3% on top of the current rates for buy to let residential properties above £40,000.
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