Yes, you can purchase property with a mortgage to leverage your buying power, but certain investments, such as the majority of purpose-built student accommodation, you are unable to obtain a mortgage.
Yes, you can purchase a UK buy-to-let property through a limited company, and it is a popular choice for investors around the world. In the right circumstances, it can offer significant advantages to investors.
Yes, you may use your own solicitor to complete the legals when purchasing. However, if they are unfamiliar with the UK buy-to-let property purchasing process and the legal requirements needed when investing, this may cause delays that may result in financial penalties to you. When purchasing property from The Prestbury Advisory, we have a select number of solicitors we recommend to make your investment simple.
Yes - Overseas investors can purchase UK buy-to-let property. Globally known as a reliable investment, the UK market offers overseas investors consistent rental returns and growth in an established market. Read more here to see why the UK property market is number one for overseas investors.
Every investment is unique, and the properties you buy should correspond to your personal financial goals. We advise that first you should consider if you are investing for the short- or long-term, if you would like to purchase with cash or leverage, and if the location of the property is important to your investment.
Depending on where you invest and what property you are buying, the amount required to purchase varies, but we recommend that you have a s minimum of £30,000 cash available if you want to buy in the UK. If you are purchasing in a more competitive, high-value market, you are likely to need more than that.
There is no "best" way to invest in buy-to-let property. The important thing is that you do what suits your financial goals and budget. If your goal is to grow a portfolio beyond your cash reserves, then look at leveraging. If you want to buy one property and get the full rental income each month, then buy it in cash. To discover which may be the right choice for you, read our in-depth insight here.
As with all investments, purchasing UK buy-to-let property has its own risks, such as cash-flow, tenants, tax and compliance. At The Prestbury Advisory, we advise performing extensive due diligence to mitigate these risks and to make the most from your investment.
Construction delays are fairly common in UK property development and cause minor inconveniences rather than financial loss. Delays, though, are not always an issue, as depending on the investment, investors could benefit from the market rising during construction, rents increasing before completion, and the finishes exceeding expectations.
A buy-to-let (BTL) property investment is when someone, or a company, purchases a property to rent out to tenants rather than live in it themselves. The most common goals for this are to make money from rental income and/or capital appreciation
In property, capital appreciation means the property becomes more valuable over time. Reasons for property increasing over time include a higher demand in the area, economic growth, transport improvements, regeneration projects, supply and demand imbalance and inflation.
A freehold property means you own the property and the land it sits on. In the UK, freehold is considered the most complete form of property ownership.
A leasehold property means you own the property for a fixed number of years, and the land is owned by a freeholder (landlord). Common in apartments, owners may be expected to pay ground rent, service charges and maintenance fees.
Stamp Duty is a UK government tax, paid when purchasing a property. The amount is typically calculated as a percentage of the purchase price, but depending on the party buying, amounts may vary. If you are buying a second home or a buy-to-let, you will pay a higher rate, adding a 5% surcharge across all bands. Non-UK residents purchasing property in the UK, a 2% is added to all standard SDLT rates.
In property investment, a supply and demand imbalance refers to there being too many buyers/renters and not enough properties. Imbalances can strongly affect property prices, rental prices, yields and capital appreciation
When purchasing property, yield is the income you earn from an investment, usually shown as a percentage of its price or value. People often look to yield when they want regular income, passive cash flow, retirement income or lower-volatility income.
Yield can vary significantly depending on the investment you make. Recent UK finance data showed the average buy-to-let yield is around 7.2%, but leading property markets, such as the North West, can see significantly higher rental returns of 10-12%. Alternative investments, such as PBSA, are also known to consistently achieve rental returns higher than average as well.
When purchasing a UK buy-to-let property, investors must be aware of the taxes, as this will determine if their investment is profitable. The main taxes are Stamp Duty Land Tax (SDLT), income tax on rental profits, Capital Gains Tax (CGT) when selling, and Corporation tax if investing through a company. At The Prestbury Advisory, we recommend that, with all investments and purchases, you consult an independent tax advisor to see which may be relevant.
Depending on your financial goals and investment strategy, the best place to invest is unique to each individual. We advise clients to perform extensive research before purchasing, as investing in the wrong location can be damaging to their income. Markets such as the North West, though, are reliable as it offers consisteny high rental and unprecedented growth. Learn more about why investing in the North West could be your key to investment success here.
The management of your property is based on how involved you would like to be. At The Prestbury Advisory, we advise taking on a lettings and management company, such as Northbank Residential, to make your investment as hands-off as possible.
Globally renowned as one of the most reliable and stable investment markets, the UK property market offers investors income, opportunity to leverage their cash, and long-term asset ownership in an established legal and financial market.
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