Buy To Let Solicitors

Purchasing a buy-to-let property comes with additional challenges and is more complex than buying a home to live in. You may need to comply with special mortgage conditions and you will have additional responsibilities as a landlord. Our expert buy-to-let solicitors have helped hundreds of landlords expand their property portfolios. Whether this is your first investment or your hundredth, we can help you navigate the process and ensure that your purchase goes off without a hitch.

What to expect from your buy-to-let solicitor

Buy-to-let conveyancing follows the same broad process as other residential conveyancing. However, there are some additional considerations that your solicitor will need to take into account. These include:

• Making sure that you comply with all the mortgage conditions
• Advising on restrictions that may affect you (as owner) and the tenant (as occupier)
• Advising on any local authority “good landlord” schemes that may apply to the property
• Confirming the property has a licence if it is a house of multiple occupation (HMO)
• Checking the gas and electrical installations are certified and safe
• Making sure you understand your obligations as a landlord, including ongoing costs and maintenance

Your experienced and knowledgeable buy-to-let solicitor will explain the process to you and provide advice on any legal issues. They will work hard to make sure that everything is in place before the sale goes ahead so that you have no surprises at the completion stage.

What is buy-to-let financing?

If you are not able to pay the full purchase price from your savings, you will need a specialist buy-to-let mortgage. These mortgages are different to standard residential mortgages as they are perceived to be a higher risk. Generally, you will need a larger deposit (usually between 20% and 40%) and you may face higher arrangement fees and a higher interest rate. The mortgage conditions may be more stringent than you expect.

Your solicitor can help you understand the terms of the mortgage and make sure that everything is in order before it is accepted. We can also provide in-depth advice about your financing options as well as any other costs that are likely to affect your purchase.

Income Tax relief changes for buy-to-let properties

Landlords can no longer deduct mortgage interest from rental income before calculating their income tax. There is some tax relief, but it is limited to a tax credit based on 20% of the interest element of your mortgage payments. This means that landlords generally pay more in tax than before the rule change.

Our team will be able to explain these changes and help you understand how they may affect your particular situation.

Capital Gains Tax on buy-to-lets

If you are selling a buy-to-let property, you will need to pay Capital Gains Tax on any profit you make. Depending on your situation, there may be options for transferring your property tax-free, such as gifting the property to your spouse. Our solicitors can provide advice and explain the different options available to you.

Stamp Duty is higher for buy-to-let properties

If the property is worth more than £40,000 and this purchase will result in you owning more than one property, then you will have to pay an additional 3% on top of the regular Stamp Duty Land Tax (SDLT) rate. This is known as Additional Stamp Duty rate.

For example, if you bought a property for £220,000 as your only property, you would not pay any SDLT because the regular SDLT rate for properties worth up to £250,000 is zero. If you bought the same property as a buy-to-let and you already owned a home, you would pay 3% of £220,000 which is £6,600.

What are the costs of purchasing buy-to-let?

Besides the higher mortgage costs and Stamp Duty Land Tax, your buy-to-let solicitor will charge legal fees for conveyancing work. There will be additional charges for searches, Land Registry fees and so on. If you decide to work with us, we will give you a fixed quote to undertake all the work that is needed in your transaction. We will also advise you of the third-party costs (like search fees) that will apply so you won’t be hit with any unexpected charges down the line.

Do I need a buy-to-let solicitor near me?

While it isn’t necessary to use a buy-to-let solicitor near you, local market knowledge is often invaluable. We have dedicated teams in Camden and Hampstead who can advise on buy to let properties in:

• Belsize Park
• Swiss Cottage
• St John’s Wood
• Primrose Hill

Ready to expand your property portfolio with a buy-to-let investment? Our expert buy-to-let solicitors at Osbornes Law are here to guide you through the process. Whether you’re a first-time investor or a seasoned landlord, we provide tailored advice to meet your needs. Contact us today for a free quote.