Buy to Let FAQ
What does it mean when a property is described as self- contained?
It is a term in common use meaning that the property is a whole unit, having its own unshared internal facilities, like bathroom and kitchen. A property sharing outside facilities, such as a drying green or an entrance lobby in a tenement block may still, however, be classified as self- contained.
Is it worth considering letting to students when most will probably opt for student halls of residence?
Certainly, if you can offer a better deal in terms of price or facilities. Some universities and colleges cannot meet demand for accommodation, especially for students after their first year, and there is always a certain percentage of students, especially mature ones, who do not like the idea of staying in halls of residence. Contact the student accommodation officer and get some facts.
I am worried that the lease will be written in such legalistic jargon that I won't know what I am signing. Will this be the case?
No. Leases are mostly very readable and understandable documents. There will be some legal words and phrases, and if these need explaining ask your lease provider for clarification. You will not be asked to sign anything you do not understand.
What happens to a lease after it has been signed?
When a lease has been signed, the master copy is retained by the landlord or his agent, with a copy supplied to each of the other signatories. Stamp Duty Land Tax may be due to the Inland Revenue, payable by the tenant.
Should I start to arrange the lease before or after I find a suitable tenant?
Definitely before. Consult your lease provider well in advance of advertising for a tenant. With his or her help you will then know the type of tenancy you can offer and the terms such a tenancy implies. Only when you have this information can you consider making contact with a prospective tenant. Any negotiable terms of the tenancy can be put in place at the last minute.
Do I have to supply the local council with details of my new tenant for their council tax records?
Not usually. If you have previously lived in the property you are now letting, all you need to do is tell the council the date you moved out and where you have moved to. It is the responsibility of the tenant to notify the council of their details.
However, you should always co-operate with supplying information to the council offices if requested to do so as there can be penalties for failing to comply. Remember, if the council believes your property to be empty, the burden of payment falls on you as the owner.
