Thinking about investing in a buy to let property in the UK but not sure where to start? Property investment can be quite overwhelming if you’re a first time investor. To put your mind at ease we’ve broken down each step of the property investment process, so you’ve got all the information you need before you take those next steps…
Before we start our guide, we’ve got some tips and information you might find useful.
Always do your research! Whilst property remains one of the safest and oldest areas to invest in, as with any investment, it’s important to always do thorough research before diving straight in. Strong economic growth, investment in infrastructure, university populations and a strong employment market are top factors to consider when choosing a buy to let investment.
If you’re an overseas investor and need a mortgage, take a look at our guide here.
A step by step guide of the property investment process
You’ve done your research and found the perfect buy to let investment, what’s next?
The first step is to agree a price with our sales team and choose the unit and development you want to invest in. Our sales team will always be on hand to answer any questions or queries you may have.
Once all of the above has been agreed, you’ll be expected to complete a reservation form and pay a reservation fee. When we’ve received your reservation form and fee, we’ll send you a welcome email confirming the next steps and the reservation period end date. The sales confirmation will be sent to you, your solicitor and our solicitor, to get the process started.
After the welcome email has been sent to everyone, our solicitor will put together a legal pack which includes the agreement, lease and plans, this will then be sent to your solicitor.
Once this legal pack has been sent, your solicitor will request a copy of your ID, proof of address and proof of funds. If a third party is paying, your solicitor will ask for third party proof too, this is to cover any anti-money laundering checks. You will then need to sign a client care letter instructing your solicitor to proceed.
Your solicitor will then need to review all the legal documents and a produce a report on the title. The report will cover all aspects of the development:
- Planning permissions
- Title and Land Registry documents
- Searches – environment searches, local authority searches and chancel and coal mining searches if they are required
- Service charge
- Ground rent
- Completion dates and any other legal matters on the property
Once the report has been completed, it will be submitted to you with the lease, agreement plans and underlease. You will then have time to review the documents and if any further questions are raised, they can be answered by our sales progressor or your solicitor. Once both parties are satisfied and you’ve signed the plans, lease and agreement, you will be required to make a payment for the exchange deposit and the exchange will then take place between the two solicitors.
If the residential development is finished and operational, completion may happen simultaneously or at a later agreed date. If the development is not yet complete, a long stop date is provided which is usually around 12 months after the anticipated completion of the development. The long stop date is a legal date that completion has to take place by.
Once the development is complete, a 15 day notice period is provided by our solicitor to your solicitor and any further payment is required within the notice period. If you have secured a mortgage for the investment, funds will need to be released within this notice period.
When the completion has taken place, you will start receiving your income! Whilst it may seem like a lot of steps, our team will guide you through the process and make your investment journey as seamless as possible.
We have a number of property investment opportunities available in prime city centre locations in Manchester, if you’ve like to find out more, speak to a member of our team.