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What if I am purchasing a buy-to-let property? 

Simply put, a buy-to-let (BTL) property is one that is purchased as a second property with the sole aim of being rented out by the buyer. They can be a great investment for those in a good financial position, but many people don’t fully understand the process that goes into them. Below, we have run through the process of acquiring a buy-to-let residential property, and any extra costs you should expect. 

What is a buy-to-let mortgage? 

As with any property purchase, if you cannot buy your buy-to-let property outright, you will need to apply for a mortgage. However, a standard mortgage only applies when a person is planning on living in their new property, for a BTL purchase you will require a specific buy-to-let mortgage. 
Alternatively to a regular mortgage, it is not your salary as the buyer that will be the first consideration by mortgage lenders for these mortgages, but instead the potential rental income of the property at hand. Generally, lenders will require the rental income to stand at 125% of the monthly payments for the loan or mortgage. As an example, if your potential mortgage repayment is set to be £500 per month, you would typically need to show that the rental income would be at least £625 (125% of the monthly loan repayments for the mortgage). 

Are the costs involved the same as a regular property purchase? 

When purchasing a buy-to-let property, we would advise that you budget more than if you were buying the same property to live in. 
This is because there are numerous key differences between the costs involved in the respective mortgages:- 
Fees tend to be a lot higher on BTL mortgages 
Interests rate are generally higher on BTL mortgages 
Initial deposits can be bigger on a BTL mortgage, with some requiring more than 40% downpayment 
Most BTL mortgages operate on an interest-only basis. This means that each month you simply pay the interest that you have acquired on the loan, and must repay the original amount of the loan in full at the end. 

How can MG Legal help with my buy-to-let purchase? 

Here at MG Legal, our expert team of property conveyancing solicitors have over thirty years of experience with buy-to-let property purchases. We know that the process is new to many, so our friendly team can help to take the stress out, and can offer expert help and advice on all aspects of the property transaction. 
From the first time you contact our team, or office, you will deal with the same conveyancing solicitor who will personally handle your property purchase, and be at hand for any questions and queries that you have throughout the process. Contact us today via an online form, here, or via email at 

Get in touch and talk to an expert property conveyancing solicitor today. 

MG Legal's expert property solicitors are experienced in dealing with all aspects of residential and commercial property sales and purchases. 
Our property solicitors understand that buying or selling a property is an extremely exciting time, but can also become overwhelming. Keep the process hassle-free, and leave the conveyancing to our conveyancing experts, who will guide you through the process in a no-nonsense way. 
MG Legal allow you to focus on the excitement of your new home, with the help of our friendly team who work with you, not just for you. 
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