Polmont Park , Polmont £450 pcm

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

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.

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.

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.

Mind your Step: 3 Legal Issues Landlords need to Avoid

When it comes to being a landlord there are a number of legalities and regulations that you need to stick to, otherwise you could find yourself being issued a fine, or worse, ending up embroiled in a court case. Most of the time this can happen by accident, as landlords in general are meticulous when it comes to looking after their businesses. However, as the problem of rogue landlords is becoming more severe, the government and other regulatory bodies are becoming stricter, so if you make a mistake you will more than likely find yourself in a whole heap of trouble. Here we look at 3 legal issues all landlords need to avoid and what you can do if you find yourself on the wrong side of the law:

Legal Issue 1: Failing to place your deposits in a protection scheme

Recently the Scottish government announced that they were introducing a deposit protection scheme like the one that is currently in place in England and Wales; however a large percentage of landlords have already failed to place their deposits in a scheme before the designated deadline date. When it comes to deposit protection this is generally where most landlords slip up, as the rule is you only have 30 days to register the deposit, and provide your tenants information on the scheme and their tenancy. Failing to do so can lead to you having to pay a fine of up to three times the amount of the original deposit, and also means that if you choose to evict your tenant you could find that the court rejects your possession order.

If you do fail to register your tenants’ deposits on time or provide them with the required information then the first thing you need to do is contact a registered deposit protection scheme and explain the situation. If you are lucky they may just issue a small fine as long as you are only a few days late and you register the deposit straight away, however don't expect this to happen more than once! 

Legal Issue 2: Not paying the right amount of tax

It seems a week doesn't go by right now where a large corporation is accused of not paying the right amount of tax that they owe, and there have been calls for stricter laws to be put into place so that all businesses can no longer use loopholes in order to pay less tax. Paying the right amount of tax on time is extremely important for all landlords, as if you don't the HMRC could audit your entire business and even take you to court if they believe you are committing tax evasion.

Each year the government issues deadline dates for registering for self-assessment and sending in your self-assessment tax forms, so there is no excuse when it comes to remembering. If you are struggling filling in your tax forms then the government also offers advice online and by phone, or you may have to just hire an accountant to make sure everything is done correctly. You also need to be careful when it comes to selling your properties, as if you make a profit of over £10,600 you will be eligible to pay capital gains tax. The HMRC are currently cracking down on landlords who have failed to declared profits when selling properties, so make sure you do so now before it’s too late!

Legal Issue 3: Leaving properties in disrepair

All private rented accommodation in the UK needs to meet certain standards before it is allowed to be let out, and if yours fails to do so you could find yourself in a lot of trouble. For example, all of your properties must come fitted with fire alarms on each level, have safe wiring, have annual gas checks and be safe for your tenants to live in. Your landlord insurance can help cover the costs of maintaining your property, however when you do decide to invest in a property you should make sure your budget includes the costs of maintenance.

If you fail to keep all the properties in your portfolio at the required standards then not only can your tenants complain to their local council, but you could also be banned from letting out the property until work has been carried out. This will lead to you losing a lot of money extremely quickly, so make sure you write yourself a checklist of everything that needs to be done to each property and stick to it!

The 3 property disasters all landlords should plan for

Knowing that your properties are safe is one of the most important things for all landlords, however sometimes no matter how hard you try you could find yourself in the midst of a property disaster. The fact is that even if you are extremely careful there are things that you just can’t account for, and so you need to have a plan set up for if the worst happens. So here we look at three of the most common property disasters all landlords should wary of, and the best way to tackle them if they ever happen to you:

Fire

Possibly one of the biggest fears for a landlord is that one of their properties will catch on fire, especially as the damage can leave the building completely uninhabitable for an extensive period of time. Fires can spread exceedingly quickly, and can be started easier than most people think, which is why by law all landlords must fit a fire alarm into each level of their properties as a minimum. However, you don’t just have to install fire alarms, these days you can also find smoke detectors that are even more sensitive than traditional fire alarms, meaning your tenants can be warned as quickly as possible if something is wrong.

If there is a fire in your property obviously the first thing you need to do is make sure that all your tenants are safe, and then talk to the fire brigade in order to try and decipher how the fire started. This is extremely important as if the fire started due to faulty wiring for example, as you could be accused of not keeping your property up to the required safety standards. You should also call your landlord insurance provider straight away to let them know what happened, as not only will you need their help when it comes to repairing the property, but also finding your tenants a new home and maybe dealing with legal issues.

Flood

Most people think that floods are not as dangerous as fires, however if you remember the pictures in the newspapers last year of whole villages practically underwater you will soon think twice about how damaging floods can be. If your property becomes flooded not only will there be extensive water damage to all your furnishings, but also the carpets, wallpaper, and even electrics. This can all add up to be extremely expensive, especially if your tenants’ contents are covered on your landlord insurance policy as well.

If you let out a property in an area that is prone to flooding you need to make sure that your explain this to your landlord insurance provider and see whether it will cost you more to protect your property. While you may not initially be too pleased about paying extra, if your property is ever affected by a flood at least you can be safe in the knowledge that all the costs will be covered and you won’t be left out of pocket.

Burglary

This is probably one of the most common property disasters that landlords come across, and it is more than likely that at one point or another you will find that one of your properties is targeted by thieves. If your property is currently occupied then you will need to find out how the burglars managed to get into the property in the first place, as if it is due to a tenant not locking a door properly or leaving a window open then you can hold them responsible. On the other hand if a thieve smashed a window or broke down a door then you will be able to cover the damage yourself with your insurance, and also learn how to keep your property safer in the future!

If one of your properties is currently unoccupied it is at even more of a risk of being broken into, which is why many landlords invest in specialist unoccupied property insurance in order to compensate for this. In order to keep your unoccupied property safe you should also make sure that your house is locked up properly, and if you are really concerned you could even think about adding bolts to the doors so it’s harder for thieves to get in.

While no-one will ever welcome a property disaster, if you know how to deal with the situation you will not have to worry about how they will affect your finances, and be safe in the knowledge that you can have your property back up and running in no time.

How investors are going back to buy-to-let for a good return on their money

Renting has become a way of life for hundreds of thousands of young professionals. For many, it’s not a predicament they wish to be in. But it does mean that for those entering the buy-to-let market the chances of finding suitable tenants have seldom been better. 

With savers suffering dismal returns on their accounts, buy-to-let is once more a lucrative option. 

Tim King, at London-based estate agency Felicity J. Lord, says: ‘Buy-to-let investors were once wealthy investors using cheap credit. Now, they’re people in their 50s who have lost trust in banks and pension schemes and are looking for a decent return on their money.’

Let the good times roll: Buy-to-let once more appears to be a lucrative option for some

The figures certainly look appealing. There is huge demand for rentals among young professionals struggling to get on the housing ladder, many of whom have to rent throughout their 20s, 30s and beyond. The average age of a first-time buyer sits at 30, and older for those buying without assistance.

This week, figures from Countrywide, the UK’s largest lettings agency, revealed that the average rent in England, Scotland and Wales has risen for six consecutive months to hit £842 a month in April, up 0.8 per cent year-on-year.

 

The average yields — that is, the annual rent as a percentage of the price paid for a property — is a healthy 6.2 per cent. But that figure does not take into account mortgage payments or maintenance. And if you want a letting agent to manage the property they will charge a fee of about 10 per cent of the rent.

Investors keen to take advantage of the market must choose their property and tenants wisely. 

Young professionals are generally seen as more reliable tenants than students or families with young children, who are more likely to cause accidental damage in homes. But it’s vital to carry out identity, credit and reference checks before you hand over the keys.