A Step by Step Guide for Investors
In this section, we have explained the buying process in an easy to follow guide.
Step 1: Location
Location is arguably the prime consideration in any property purchase. There is however a major difference between the location of your home and the location of a property for long term investment. You may choose to live in the city, in the suburbs, or in a more rural location. Where you want to live is your choice and is, ideally, a personal and emotional choice, not financial.
When purchasing a buy-to-let-let property for long term investment, it is still a personal choice, but should be based on finance rather than emotion. When considering prime locations, potential for capital growth and availability of suitable tenants are key factors.
Step 2: Price
The price you are prepared to pay for a property will be influenced by the amount of money you can borrow and the deposit you have available to invest. Whilst you can use any mortgage advisor, we do suggest you talk to one of our panel of mortgage brokers who specialize in the buy-to-let market.
Step 3: Reservation
The next step after locating a prime development, and realising your budget, is to reserve a plot. Your reservation fee, which is non-refundable, secures your chosen property whilst your mortgage is arranged and the solicitor carries out the legal work. The reservation fee does vary between developers, but is usually a minimum of £1000, and is exempt from VAT.
Step 4: Arranging a Mortgage
Hopefully, you will have followed our advice in Step 1 and already have a mortgage arranged in principle. If this is not the case, you should speak to a mortgage advisor immediately. We have a panel of proven mortgage advisors who, whilst recommended by us, are totally independent and as such will give you independent advice.
The only cost to you at this stage will be the fee for the valuation of the property which is arranged in liaison between the mortgage advisor and the lender.
If you wish to take advantage of our assisted purchase scheme, it will be necessary to use one of our recommended mortgage advisors.
Step 4: Instruct a Solicitor
The solicitor will act for you in respect of your purchase and will investigate the legal aspects of the property you are buying, advising you of any legal problems.
We only deal with new properties where legal problems are exceptionally rare.
If you are taking advantage of our assisted purchase scheme, then you will be required to use one from our panel of solicitors.
Our panel of solicitors and mortgage advisors continually work together, thus ensuring that the purchase of your property is as fast and as efficient as possible.
Step 5: Exchange and Completion
In the case of a finished property, this often takes place at the same time.
If however the property you are purchasing is off-plan, then you will be required to exchange well before the property is finished, upon payment of a deposit. This deposit will, in most cases, be discounted through negotiation by NBL.
Step 6: Finding a tenant
We at NBL will source out several letting agents in the required area on your behalf. We will arrange all agent viewings and get you the best possible deal on your rental property.