How To Become a Landlord in London

Over the last decade, investment in property has become an increasingly popular venture due to rising house prices. Since 1996 becoming a landlord has become a relatively simple process, thanks to the Association of Residential Letting Agents (ARLA) teaming up with a number of big name mortgage lenders in order to promote the buy-to-let mortgage scheme.

It is important that anyone thinking of becoming a landlord speaks to a reputable letting agent in the area they are thinking of buying. It is much better to take advice from the letting agent as opposed to an Estate agent that also sells property when looking at a buy-to-let property. A reputable letting agent will be able to give you an unbiased and more realistic view of what is rent is achievable for the property whereas an estate agent may give you inflated figures in order to secure a sale.

With a buy-to-let mortgage, the property is purchased with the specific intention of renting it, and the premiums are usually charged at around 125% of the annual interest due on the loan, or the monthly repayments. This is in order to account for any maintenance costs as repairs and upkeep on the property can be deducted from the profits on the property.

With buy-to-let, it is possible to purchase a property and let it out at relatively high rates, paying off the mortgage and making a profit at the same time. Due to the high demand for rental properties, particularly in inner city areas, many are turning to property as a secure alternative to stock market investment. Buy-to-let mortgages can easily be arranged through many big lenders, and ARLA can also advise you on your options.

It is important to seek professional, objective advice when taking out a buy-to-let mortgage. As with any big investment there are pitfalls as well as rewards, but it can be a highly profitable enterprise.

Many people are put off the idea of becoming a landlord because they do not want to deal with tenants, maintain the property, or collect rent. This problem can be easily solved by a good letting agent. A good letting agent will take care of the entire tenancy for you, even finding new tenants for your property when the current tenants vacate.

In summary it has never been easier to become a landlord. If you are looking for a steadfast investment, it is definitely worth considering buy-to-let as long as you are aware of associated risks.

CLICK HERE for Residential Letting Agents in London