CapEx Properties

The Benefits of Owning a Buy to Let Property in the UK

Owning a buy to let when you invest in UK property and renting it out can be very rewarding. It can be a way of having a regular income coming in, together with actually owning something that should increase in value over time.

If you have a London property investment and are considering renting it out, there are many things you need to make sure you get right, such as rental income, statutory obligations (e.g. gas and electric certificates), and of course having the right tenants in-situ.

What are the benefits of a Buy To Let?

You’ll have the option of a Buy to Let mortgage

Unless you can fund your property purchase with cash, the chances are that you will need a buy to let mortgage. For landlords, this is the most popular way of acquiring property, which in itself can benefit you in a number of ways including:

  • Interest only payments
  • Longer mortgage terms
  • Mortgage payments can be offset against tax
  • Less strict regulatory processes

The good news is that there are a number of products and lenders out there to choose from, and you should be able to get a good deal from a lender when buying property in the UK.

If you have a larger than average deposit to put down, for example around 35 to 40 per cent, then the deals get even better.

Consumer website which.co.uk has some very useful information on mortgage deals worth looking at, and of course as your local property buying agency we are happy to help and put you in touch with a recommended mortgage adviser who will assist you with lending criteria and affordability.

You’ll get potential high returns on your money

When you own a rental property, you should benefit in two ways, financially speaking. Firstly, you’ll have a monthly income stream coming in. If you’ve done your sums right and have a rental income that produces a good yield, then this is good news.

Secondly, you should see your property value go upwards over the years. Despite everything, buying an investment property UK is still seen as a sound investment. We know for example that as soon as a rental property in London is marketed, then there are a huge number of enquiries and properties rent extremely fast.

Top Tip: Do your homework. If you need help making sure everything adds up, talk to us and we’ll do our best to help you.

You’ll diversify the risks

It’s fair to say that the economy has taken a battering over recent months. High street shops and large businesses have come a cropper because of lockdowns and uncertainties over investment going forward. Where previously you may have been certain of your other investments, perhaps now there’s an added element of risk.

If you have a few pounds stashed away in various projects or investments and are worried what the future might hold, property in the UK is still seen as a sound investment strategy with good returns. Again though, you must do the maths and look at interest and repayments and make sure the rental income covers not only fixed costs, but also maintenance and the other expenses associated with rental properties.

Top Tip: Seek the advice of a trusted lettings and property expert to find out which areas will present the best opportunity for rental incomes.

You can help friends and family

We’ve seen a trend recently of people investing in buy to let properties as a way of helping friends and family out, while at the same time building up a property portfolio.

It’s an interesting concept and will not be for everyone but if you know someone going to college or university, it could be a way of generating useful cashflow.

Top Tip: There are rules and regulations that tenants and landlords have to abide by whether your tenant is someone known to you or not! It’s probably even more important to get it right if you rent to friends or family as you won’t want conflict in the future.

These are just some of the benefits to owning a buy to let property uk. There are many things to think about, so if you would like some expert help, do give us a call and we’ll talk you through it. CapEx Properties are your local property experts for the UK. Call us on +442039898010 to chat with a member of our friendly and experienced team.

How to invest in property in the UK

So, is the UK good for property investment? Yes, resoundingly so. Investing in UK property can be extremely attractive to foreign investors. Rental demand in the UK is inordinately high and outstrips supply year on year, as the country cannot build the required number of new homes that it needs, to service the population. As a result, historical capital appreciation has been as much as double digits, year after year, so the right investment in the right area, certainly can produce a healthy, long term capital gain. 

A market as fast and competitive as this one can be difficult to navigate especially as a foreigner buying property in the UK. So, whether you are relocating to London or planning to invest in a buy to let property, CapEx Properties is top of its class when it comes to assisting you in making a sound investment with good solid returns. 

If you are interested in procuring a property investment in the UK, you can contact us by completing our contact form. An expert broker will get back to you within 24 hours to talk about your needs and specifications. CapEx Properties offers a tailor-made experience to avoid the worry and stress of navigating the UK property market and endeavours to find you the best property investment in the UK. CapEx Properties has helped countless foreign clients find their ideal property and we pledge to do the same for you. 

About Us

CapEx Properties is an independently owned property search/buying agency, assisting international clients with the search & acquisition of UK properties.

Contact Details

CapEx Investment Properties Limited trading as Capex Properties is a company registered in England and Wales. Registration number 13324508.
Registered address: 128 City Road, London, EC1V 2NX, UK.