Buy To Let – 5 things you need to know

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.

  1. 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.
  2. 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.
  3. 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.
  4. 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).
  5. 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.


Buying Property in Scotland

Before buying property in Scotland, whether it is a buy-to-let property, or a home for you and your family, it is important to be aware of what can be involved in the property buying process. 

Read our blog below to find out more about Home Reports, Additional Dwelling Supplements and more!

Buying Property in Scotland

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Everything we do at Watermans is about getting you the resolution you need and making that process straightforward. Start the process by sending us your details below or calling us on 0131 555 7055

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Our property expert

“My clients would describe me as being approachable, down to earth and easy to get on with. This allows me to build relationships with my clients and provide straightforward legal advice without all the jargon.”

Shawn Wood, Head of Conveyancing