Buy to let
One of the most important investments you will make

Buy to let

As investments go, historically investing in bricks and mortar has been a pretty safe one, but you must look at it as a medium to long-term investment and not the means to a make a quick profit.

buy to let

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Begin searching for your next property investment.

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With you every step of the way

1. Research the market

If you are new to buy-to-let, what do you know about the market? Do you know the risks, as well as the benefits. The more knowledge you have and the more research you do, the better the chance of your investment paying off.

2. Choose a promising area

Promising does not mean most expensive or cheapest. Promising means a place where people would like to live and this can be for a variety of reasons.

3. Do the maths

To calculate the percentage gross rental yield on your investment
 (total income per year ÷ the value of the property) x 100 = % gross yield
To calculate the percentage net yield
 ([total income – total costs] ÷ the value of the property) x 100 = % net yield
Don’t forget to factor in maintenance costs. What will happen if the property sits empty for a month or two?

4. Get the best mortgage

It pays to speak to a good independent broker when looking for a buy-to-let mortgage. They will talk you through the deals available, help you weigh up which one is right for you and whether to fix or track.

5. Think about your target tenant

Set a realistic rent. A high rental value could put off tenants and possibly increase the amount of time your property is vacant, so you’ll be spending money, with none coming in. It can be a complicated process and every single case is different. Speak to your local Jeffrey Ross lettings team for more detailed information or contact us and we will get back to you.

1. Acquisition costs

*Please note: It is assumed that your buy to let property is an additional property and subject to higher stamp duty rates

2. Letting income

*Please note: Time unoccupied – eg. percentage of a 12 month period where the property cannot be tenanted due to renovations etc.)

3. Gross yield

land transaction tax – buy to let

Land Transaction Tax you’ll pay for buy to let

Use the below tabs to find what percentage of LTT you will pay depending on your property value.

Buy to let / Second home rate 3% Source: HMRC
Buy to let / Second home rate 6.5% Source: HMRC
Buy to let / Second home rate 8% Source: HMRC
Buy to let / Second home rate 10.5% Source: HMRC
Buy to let / Second home rate 13% Source: HMRC
Buy to let / Second home rate 15% Source: HMRC

Thinking of buying to let?