Letting a property - What to consider...?

ch3101

Hi guys,

I'm basically looking at a Buy to let property right now and just making sure I have considered all of the costs involved before going ahead.

The flat we have our eye on is a 1 bed top floor flat, everything inside is brand new as the previous owners just did it up to sell it.

They are asking for 35,500 and want a quick sale so we should get it at that, no higher than 36,000 I'd say.

Mortgage should be <170 per month, 75-80%LTV, and the rental income should be 350 per month.

Also we are in Scotland.

What we've (my brother and I) considered as start up costs are:

Deposit on property - £7200
Mortgage fee - up to £1000
Buying fees - probably do conveyancing ourselves depending on when property was last sold- brother has sufficient experience and knowledge to do this.
Gas safety certificate - £60
Land lord registry- £120
Insurance - £150

What I'd like to know is, is there anything we've missed/overlooked? Anything expensive that we haven't thought about?
Do any current landlords provide anything as standard e.g. Wifi, cutlery, dishes, a fridge etc...?

And if anyone has any general advice it would be appreciated as well?

Thanks

whalster

Flats are more hassle. than houses younger demographic move more less experience of life ,here I generalise ofcource but it s my experience ,I am not saying you won't make this work however I would hate to think I had only flats and had not started out with hoses .
Your other question I provide.sky plus and hot bird ( polish telly) every little helps

Werdnal

Some of this is based on England/Wales letting regs, but will give you a good start:

http://forums.moneysavingexpert.com/showpost.php?p=41160642&postcount=12

simpywimpy

You need to budget for any future increase in the mortgage rate and have a pot in case of repairs, periods without rent etc

ch3101

whalster wrote: »

Flats are more hassle. than houses younger demographic move more less experience of life ,here I generalise ofcource but it s my experience ,I am not saying you won't make this work however I would hate to think I had only flats and had not started out with hoses .
Your other question I provide.sky plus and hot bird ( polish telly) every little helps

Yeah, the yield on 1 bed flats is too good and also the price point is nicer to look at.

Do you provide a tv licence? I was thinking that would be the tenants responsibility considering they want to watch TV and I'm just providing a place to live, cook, wash etc...?

Not sure if I'd have any foreign tenants, not to discriminate but more to ensure a full understanding of the contract and rules.

We have a family friend who has 8 flats so are getting a little guidance from him as well.

Thanks

ch3101

simpywimpy wrote: »

You need to budget for any future increase in the mortgage rate and have a pot in case of repairs, periods without rent etc

Yep we have a lot more savings than we are using and will also be putting £100 a month into the "business" bank account as future investment/maintenance.

The rate will be fixed for 5 years so not too worried about that, but also, the rent should be >2x the mortgage and we will be accumulating that profit.

When there is no tenant we will cover the mortgage ourselves as we have basically no other outgoings anyway. Either way we will have a pot sitting there to start with.

Thanks for your reply

ch3101

Werdnal wrote: »

Some of this is based on England/Wales letting regs, but will give you a good start:

http://forums.moneysavingexpert.com/showpost.php?p=41160642&postcount=12

I'll give that a read right away, thanks.

[Deleted User]

Are you sure you can get a mortgage for such a small amount on a top floor flat?

ch3101

citricsquid wrote: »

Are you sure you can get a mortgage for such a small amount on a top floor flat?

I have a meeting tomorrow to talk through options with a mortgage advisor. I also have a meeting set up with Clydesdale bank, I spoke with them today and ran through some basic details just to give a bit of an outline of our circumstances and the lady seemed quite positive - good enough to want to set up a meeting.

They can lend as little as 15000 which I confirmed with her. She also asked about the property and we gave basic details, obviously that it is in good enough condition to mortgage.

What difference does the top floor part make?

I'd see it as a bonus as it is a reasonable busy street so would be away from the noise.

tim123456789

whalster wrote: »

Flats are more hassle. than houses younger demographic move more less experience of life ,here I generalise ofcource but it s my experience

Depends where you are

In some areas the only "family" occupants that you can get for houses are HB tenants because all of the prime "professional" singles/couples don't want the aggro of a garden and all the "well to do" families buy.

tim

ch3101

tim123456789 wrote: »

Depends where you are

In some areas the only "family" occupants that you can get for houses are HB tenants because all of the prime "professional" singles/couples don't want the aggro of a garden and all the "well to do" families buy.

tim

Yes we did look at possibly purchasing a 2bed terraced house near a school which would obviously have a large target market but decided against it just now due to the extra level of upkeep there would be and also the increase in price.

Where we are I wouldn't expect many professionals but it is right next to a 5 minute train into Glasgow so we should have a large market as well.

Thanks