Your child may be at university, enjoying their first year of student life. But you may already be considering buying a home for them to live in next year. If that sound's like you, you need to make sure you do your homework.
Pros of buying a student home
But becoming a landlord doesn't come without its stresses:
Your student house may need to be licensed under the Houses of Multiple Occupancy agreement, for which you will need to pay your local council a fee and comply with their conditions. These vary from council to council and can be anything from a few hundred to a few thousand pounds.
There is also fire, heath and safety requirements you need to meet
And you will also need to consider the new Tenancy Deposit Scheme rules.
But when searching for a buy-to-let mortgage, you need to be aware that not all lenders will lend on student lets. Around 44 lenders currently lend on student property - you will need to place a deposit, typically 20% or more and the mortgage would be processed on the rental potential of the property.
If buying a student property is for you, make sure you take the time to research the local market thoroughly. Speak to some local landlords or the local landlords association, and get up to speed on the best places to invest. Once you've found the property for you, get a feel for the best buy-to-let mortgage rates today.
Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.
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