Who do you need to be successful in buy-to-let?

When you buy-to-let, it’s important to remember that you are effectively setting up a business. Businesses come with rules and regulations – those related to property and those related to running a business, including understanding the impact of taxation on all of your earnings, not just those from the property.

So when it comes to buy-to-let, there are many different legal, financial and practical elements you will need to succeed. And, as a landlord, particularly if you’re relatively new to the industry, it’s almost impossible to become an expert in all of them - not to mention incredibly time-consuming!

The most successful landlords are those that surround themselves with good professional advisers who are experts in their fields and can help ensure a buy-to-let enterprise is set up and run in the best possible way. As such, these rental properties tend to be:

• Bought, owned and financed appropriately
• Legally compliant
• Consistently let to good contract-holders
• Profitable
• Tax-efficient

Here are the key advisers we’d suggest you work with:

Financial adviser / Wealth manager

Even before you invest in property, it’s worth speaking to a financial adviser or wealth manager. They can take a look at all your current income, savings and other investments and help you decide how property would best fit into your existing wealth portfolio. They will also be able to make recommendations on the best way to structure the ownership and realise returns, as well as whether and how much to borrow through mortgage financing.

Property tax specialist

Property tax is a complicated area, so even if your financial adviser understands property tax, it’s worth having a property tax specialist that can work alongside them. What you need to do is make sure you understand the implications to the way you are currently taxed. Increasing your income can mean you end up in a higher tax bracket, or even losing your child allowance if you receive it.

Mortgage broker

Buy-to-let mortgages have different lending criteria to residential mortgages, with affordability based primarily on the level of rental income the dwelling will generate. A specialist broker can help you identify whether a property ‘stacks up’ financially and advise you on the most appropriate mortgage options.

It’s also worth knowing that the majority of all buy-to-let mortgage products are only available through brokers, so it makes sense to work with one who has experience of securing deals for landlords. And if you are planning to own multiple rental properties and become a ‘portfolio landlord’, these require specific mortgage products that have tighter lending criteria, which an experienced broker can help you navigate.

Our sister company, Mortgage Scout, has a dedicated team of buy-to-let mortgage advisers, who can help you source the best deal for your circumstances and guide you through the application process. You can call them on 0800 144 4744 or easily chat and request a callback online.

Experienced local property agents  

For a rental investment to be successful, you need to make sure you buy the right dwelling. So, once you have an investment plan and some goals for the kind of returns you want or need, discuss them with qualified local sales and lettings agents.

They will understand supply, demand, prices and growth trends in the area and be able to help you narrow down the type of dwelling and let that will best meet your needs.

We’re always happy to help landlords at any stage of their investment journey. Just get in touch with your nearest branch and chat to our buy-to-let expert agents.

Legal representative

A solicitor or conveyancer who’s experienced in working with property investors can be invaluable when it comes to processing purchases efficiently. So, it’s well worth getting recommendations from local agents and other landlords to make sure you find the right professional to carry out your conveyancing work.

For example, what’s the best way to own your buy-to-let? If you are married, buying with a joint occupation contract agreement as you do a home is unlikely to be the best idea for many reasons.

If your financial affairs are a bit more complicated and you’re looking to pass on property assets in the future, it’s advisable to consult someone who’s experienced in estate work.

Buy-to-let limited company expert

Maximise the return on your investment and protect your profits by forming a limited company. Our Smart Investment service, powered by GetGround, creates your buy-to-let limited company in less than 30 minutes – helping you increase post-tax yield and capital gains, reduce investment risk, gain easier mortgage access, and help with inheritance and estate planning. Combining our property management service with buy-to-let limited company formation, we take the full reins on your investment, leaving you to enjoy the returns. We arrange documents, accounting services, a business account, and tax-efficient structuring.

For further advice, or if you would like us to recommend any other professional services, just contact your local branch and our teams will be very happy to help.