Polmont Park , Polmont
Lovely upper cottage flat in highly desirable area of Polmont. Ideally located for all local amenities including schools, restaurants , parks, road and rail transport furnished or unfurnished Property benefits from many quality features including Double glazing Gas central heating Fitted kitchen with integrated fridge and freezer Feature fireplace Quality carpets and decoration Newly wet walled bathroom and modern 3 piece suite Mira shower EPC Band C Landlord Reg 348272/240/19481 - See more at: http://www.propertylocker.co.uk/details/58/57PPP/#sthash.MBiYz9BG.dpuf
Wednesday 19 June 2013
Monday 10 June 2013
It's boom time for buy-to-let, so here's your homework
The buy-to-let sector is booming with landlords tempted by
lower house prices, rising rents and improved mortgage deals. Homeowners can no
longer rely on house prices rising steeply, but with rental yields on the up,
taking advantage of high tenant demand and low supply is an increasingly
popular option.
Media coverage of sky-high rents and cheap mortgages are an
easy sell, but if you are considering developing a property portfolio, you need
to be fully aware of the obligations which you will be taking on, as well as
the opportunities.
First-time buyers are still struggling to get on the
property ladder and more people are being forced to continue as tenants dubbed
by observers as "generation rent". With limited supply, landlords in
many areas are driving up rents and lenders are showing their appetite. Mortgage
lending to buy-to-let landlords reached £4.2bn across 33,500 loans in the first
quarter of 2013, according to the Council of Mortgage Lenders (CML) and by the
end of March it accounted for 13.4 per cent of total mortgage lending in the
UK, up from 13 per cent in the previous quarter. Interest rates are attractive
too, with Leeds and Virgin the latest lenders to reduce rates on their
buy-to-let ranges.
The market is skewed towards landlords at the moment, but
this doesn't mean you're in for an easy ride if you're considering the role.
Like a business, you need a careful plan and a dedicated budget for all the
likely costs you will encounter.
It's critical to do your research and find the right
property in the right area. Decide who you want to rent to – students,
families, young professionals – as this will affect the type of property you
need and the areas you need to look. Students, for example, will want to be
near university campuses, while property near good schools should suit families
and homes near to decent commuting links will have high levels of demand from
young professionals.
As a buy-to-let landlord, you have to hand over money to
agencies, lawyers, mortgage brokers and insurance companies, not to mention
spending a few hundred here and there to cover professional property
inventories, Energy Performance Certificates (EPCs), gas certificates, fire
safety and Portable Appliance Tests (PATs). Stamp duty is also payable on all
land purchases, starting at 1 per cent for property worth between £125,001 and
£250,000, although it does not apply to properties below £125,000.
All landlords have responsibilities to their tenants, namely
ensuring their properties meet all the appropriate standards with any plumbing
and electrics approved by qualified tradesmen. Deposits must also be placed in
a protection scheme – if there is a dispute at the end of the tenancy the
relevant scheme will make the final decision.
A lettings agent can take on some of the work for you. Agency fees vary hugely, but you can expect
to pay upwards of 10 per cent of the rental income for a "let-only"
service which means they will advertise your property, find and vet tenants and
collect the rent on your behalf. If you are willing to pay more – from around
15 per cent – a fully managed service includes the day-to-day running of the
property, repairs, maintenance and chasing rent. Companies are not always
transparent so ask for a breakdown of any charges to let you know exactly what
is and isn't included.
Lenders will still want to see that you have some earned
income, but how much you can borrow will largely be governed by the rental
income. Local letting agents and property websites such as Zoopla and Prime
Location will give you an idea of how much rent you are likely to get.
If you are renting out your current property and moving to a
new one, you will need a buy-to-let loan on your existing home and a
residential mortgage on the new one which means having enough money for two
deposits. You may be able to keep your old mortgage for a little while,
although the lender will probably charge a fee or increase the interest rate.
Never rent out your property on the sly as you will be in breach of both your
mortgage and buildings insurance terms and conditions.
Rent arrears and void periods are another important
consideration. Recent stats from CML show that one-in-five repossessions are buy-to-let
properties, but a contingency fund to cover unforeseen circumstances will
prevent you from losing your property so put aside some of the rental income as
protection.
Investing in property is in some ways riskier than investing
in shares because you can't simply sell up and walk away. Understand that if
prices fall and you can't find tenants, you could be lumbered with an asset
that you can't sell. Rent has to be the focus as most buy-to-let mortgages are
interest-only, meaning the loan is not being paid off over time. Once the
mortgage, running costs and tax have all eaten into your returns you will need
to build up a pot over time which you can use as another deposit or to pay off
the mortgage at the end of its term.
The buy-to-let sector is booming with landlords tempted by
lower house prices, rising rents and improved mortgage deals. Homeowners can no
longer rely on house prices rising steeply, but with rental yields on the up,
taking advantage of high tenant demand and low supply is an increasingly
popular option.
Media coverage of sky-high rents and cheap mortgages are an
easy sell, but if you are considering developing a property portfolio, you need
to be fully aware of the obligations which you will be taking on, as well as
the opportunities.
First-time buyers are still struggling to get on the
property ladder and more people are being forced to continue as tenants dubbed
by observers as "generation rent". With limited supply, landlords in
many areas are driving up rents and lenders are showing their appetite. Mortgage
lending to buy-to-let landlords reached £4.2bn across 33,500 loans in the first
quarter of 2013, according to the Council of Mortgage Lenders (CML) and by the
end of March it accounted for 13.4 per cent of total mortgage lending in the
UK, up from 13 per cent in the previous quarter. Interest rates are attractive
too, with Leeds and Virgin the latest lenders to reduce rates on their
buy-to-let ranges.
The market is skewed towards landlords at the moment, but
this doesn't mean you're in for an easy ride if you're considering the role.
Like a business, you need a careful plan and a dedicated budget for all the
likely costs you will encounter.
It's critical to do your research and find the right
property in the right area. Decide who you want to rent to – students,
families, young professionals – as this will affect the type of property you
need and the areas you need to look. Students, for example, will want to be
near university campuses, while property near good schools should suit families
and homes near to decent commuting links will have high levels of demand from
young professionals.
As a buy-to-let landlord, you have to hand over money to
agencies, lawyers, mortgage brokers and insurance companies, not to mention
spending a few hundred here and there to cover professional property
inventories, Energy Performance Certificates (EPCs), gas certificates, fire
safety and Portable Appliance Tests (PATs). Stamp duty is also payable on all
land purchases, starting at 1 per cent for property worth between £125,001 and
£250,000, although it does not apply to properties below £125,000.
All landlords have responsibilities to their tenants, namely
ensuring their properties meet all the appropriate standards with any plumbing
and electrics approved by qualified tradesmen. Deposits must also be placed in
a protection scheme – if there is a dispute at the end of the tenancy the
relevant scheme will make the final decision.
A lettings agent can take on some of the work for you. Agency fees vary hugely, but you can expect
to pay upwards of 10 per cent of the rental income for a "let-only"
service which means they will advertise your property, find and vet tenants and
collect the rent on your behalf. If you are willing to pay more – from around
15 per cent – a fully managed service includes the day-to-day running of the
property, repairs, maintenance and chasing rent. Companies are not always
transparent so ask for a breakdown of any charges to let you know exactly what
is and isn't included.
Put aside another £1,000 in legal fees, depending on how
much work is involved and the location. Your mortgage costs will vary according
to the lender, but new, buy-to-let mortgages remain more expensive than
residential deals and arrangement fees are on the high side.
Lenders will still want to see that you have some earned
income, but how much you can borrow will largely be governed by the rental
income. Local letting agents and property websites such as Zoopla and Prime
Location will give you an idea of how much rent you are likely to get.
Once the property is valued, banks usually insist that the
rental income is 125 per cent of an interest-only mortgage repayment. As an
example, Abbey/Santander offers a two-year fixed rate at 2.59 per cent to 60
per cent LTV with a 2.50 per cent fee and its rental calculation uses a rate of
6 per cent, so to borrow £150,000 the property would need to generate at least
£938 per month.
If you are renting out your current property and moving to a
new one, you will need a buy-to-let loan on your existing home and a
residential mortgage on the new one which means having enough money for two
deposits. You may be able to keep your old mortgage for a little while,
although the lender will probably charge a fee or increase the interest rate.
Never rent out your property on the sly as you will be in breach of both your
mortgage and buildings insurance terms and conditions.
Rent arrears and void periods are another important
consideration. Recent stats from CML show that one-in-five repossessions are buy-to-let
properties, but a contingency fund to cover unforeseen circumstances will
prevent you from losing your property so put aside some of the rental income as
protection.
Investing in property is in some ways riskier than investing
in shares because you can't simply sell up and walk away. Understand that if
prices fall and you can't find tenants, you could be lumbered with an asset
that you can't sell. Rent has to be the focus as most buy-to-let mortgages are
interest-only, meaning the loan is not being paid off over time. Once the
mortgage, running costs and tax have all eaten into your returns you will need
to build up a pot over time which you can use as another deposit or to pay off
the mortgage at the end of its term.
Monday 3 June 2013
Scottish Government outlines new strategy for private renting in Scotland
Tenants and landlords are set to benefit from new plans to
modernise Scotland’s private rented sector, says Housing Minister Margaret
Burgess.
 |
The Private Rented Sector strategy outlines the Scottish
Government’s plans to work in partnership with letting agents on the
introduction of new regulations for the industry.
The strategy also lays out plans to attract investment to
support the construction sector to build
new homes.
Speaking at a joint Shelter Scotland and Scottish
Association of Landlords event, the Minister set out the Government’s aim to
improve management standards and quality of service for tenants and landlords.
She said:
“Scotland enjoys a thriving private rented sector, and I am
eager that it continues to grow in a way that meets the needs of every tenant
and landlord.
Letting Agents play an important role in managing private
rented properties. We want to ensure
that all Letting Agents meet the standards of those that provide the best
service. By working together with
letting agents on further regulation of the industry, we will help to
ensure private rented accommodation is
of a good quality and well managed, benefitting both tenants and landlords.
One of our key challenges is to address the growing demand
for private rented housing, from short term flexible rents to longer term
tenancies. This Strategy commits us to
consulting in the near future with all stakeholders to examine the suitability
and effectiveness of the current tenancy regime, and we will consider
legislative change where required.”
John Blackwood, Chief Executive of Scottish Association of
Landlords said:
“The Scottish Association of Landlords (SAL) welcomes this
publication as it reinforces the existing good practice of by far the majority
of landlords and letting agents in Scotland. SAL also welcomes the Scottish
Government’s aim to see the private rented sector in Scotland grow and provide
a well-managed housing sector.”
Please click on the link below to view a copy of the
published strategy:
http://www.scotland.gov.uk/Publications/2013/05/5877
Landlords in Scotland now required to provide Tenant Information Pack
From 01 May 2013 it became a legal requirement for landlords to provide new tenants with a Tenant Information Pack when setting up an Assured or Short Assured Tenancy in Scotland. This replaces the Repairing Standard Letter (information about the repairing standard is included in the pack).
Landlords who provide an assured or short assured tenancy will have a legal duty to provide new tenants with a tenant information pack, under section 30A of the Housing (Scotland) Act 1988. This includes the renewal of existing tenancies where the landlord and tenant draw up a new lease. A tenant information pack will not be required for existing leases.
The tenant information pack includes information on the Repairing Standard, and its provision satisfies the separate obligation of a landlord to provide a tenant with written information about the landlord’s duty to repair and maintain (Chapter 4 of Part 1 of the Housing (Scotland) Act 2006).
The tenant information pack is a standardised pack which provides information to tenants in privately rented housing. It talks about property condition, tenancy agreements, and the rights and responsibilities of landlords and tenants.
The aim of the pack is to improve the accessibility of information available to tenants. It is recognised that good information may already be available to tenants and the pack is not intended to replace this, but to ensure that all tenants in privately rented homes receive the same minimum standard of information.
If a letting agent manages the tenancy the tenant should still receive a pack. A letting agent can provide the pack on behalf of the landlord. However, the legal duty to ensure that the tenant receives a tenant information pack remains with the landlord.
Failure to provide a tenant information pack is a criminal offence. If a landlord does not provide the pack, they can be fined up to £500.
More information about the pack including frequently asked questions are available on the Scottish Government website.
Acknowledgements. The information in this article has been taken from the Scottish Government’s Frequently Asked Questions about the Tenant Information Pack and provided by UKALA to its members.
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