Thinking of making a buy-to-let purchase? Our Head of Conveyancing at Watermans, Shawn Wood, has made a list of things that you should keep in mind before making that purchase.
- Additional Dwelling Supplement Tax (“ADS”) will apply to any property that you purchase which is added to your main residence. As at today’s date, the ADS tax level is 4% of the total price of an additional property if the purchase price is over £40,000. For example, if you are buying an additional property at £200,000 the ADS tax payable will amount to £8,000.
- Obtaining Finance. If you are taking out a mortgage you must ensure that it is a “buy-to-let mortgage”. We can put you in touch with an independent mortgage broker if you require assistance.
- If you plan to rent out the property, you must ensure that your property is compliant with the various regulations which relate to Gas Safety Certificates, Fire Safety, PAT Testing etc.
- If you do rent the property you must place the deposit within a Rent Deposit Scheme for safekeeping. If you fail to do this, you will be in breach of the law and you may be penalized by paying a fine (which can be a multiple of the deposit).
- You should enter into a tenancy agreement with your tenant and we would recommend that you contact a Solicitor who will be able to advise you on the lease terms before signing.
At Watermans, our conveyancing team knows the Scottish housing market, They are here to help you every step of the way, without the legal jargon.
To speak to our team, call us on 0131 555 7055, or contact us using the form below.