SERVICES

Buying a residential property to rent out involves different criteria to those considering buying a home for owner occupation.
Choice of location is a most important factor linked closely with the type of property, age, size and presentation.

A J Properties staff are experienced and knowledgeable in their areas, and fully aware of the property requirements and standards that today’s tenants are seeking.
Our staff will be able to guide you towards properties, which will make the most of the finances available, which will let quickly to good tenants and will provide a satisfactory return on your investment.

Making the correct choice at this early stage can make the difference between a successful letting or a disappointing venture into the property world.

Contacting A J Properties, and taking advantage of our professional ‘Buy To Let’ service can transform your ideas transformed into a profitable and trouble free future as a modern landlord. For both experienced and first-time landlords we are able to:

• Locate property suitable for the local rental market
• Arrange for a financial advisor & solicitor to act on your behalf
• Arrange refurbishment and/or decoration work if required
• Manage the property for you

SEARCH AND ACQUISITION SERVICE AND SCALE OF CHARGES

A. Introductory Discussion - No Fees Payable

This is an initial discussion to ascertain if residential lettings is the vehicle you wish to use for your future plans. We will explain the scheme and the services that we offer and arrange for a meeting with an Independent Financial Advisor who will guide you through the options available to suit your individual requirements.

Following this free consultation, should the matter be progressed further, a charge of £100.00 plus VAT per property will be made for subsequent consultations, advice and work to be carried out on your behalf. This fee will be offset against any other fees charged in connection with this matter.

B. A property search and acquisition service - Fee: 0.75% of Purchase price

At this stage we will discuss the size, type and location of the property and then use our contacts with the local agents to draw up a short list of suitable properties. We will then arrange to show you the properties and assist you in your final choice. Please note that we are neither surveyors nor valuers and therefore cannot accept any associated liabilities. Once a decision has been made it is then up to you to negotiate the price, fixtures and fittings etc. with the agent and to instruct your solicitor.

C. Refurbishment and preparation of the property - Fee: 10% of Expenditure

Once you have completed the purchase of the property we can prepare a schedule of any necessary improvements, repairs, redecoration or modernisation. We will then supervise and approve works.

FINANCE – FUNDS, RENTS & YIELDS

There is little financial difference between a mortgage for an investment property and a mortgage for owner-occupier use. Loans can be arranged for terms between 5 and 45 years and for up to 85% of the value of the property.

All mortgages are subject to the usual financial checks and the property will be subject to a professional survey and valued by the lender.

The mortgage repayments will be met by the rental income and this is the key point to consider when making your initial calculations.

Lenders have their own criteria for the amounts they will provide, but most expect the rental income to exceed the monthly repayment by atleast 25% thus ensuring that there is enough income to cover the repayment and also your agents fees, insurances, maintenance and the tax payable on the profit

Following our initial discussion we can introduce you to an Independent Financial Adviser who can offer a full range of lending sources, with advice on the best solution for your requirements together with the current interest rates.

You should also consider the initial costs – surveys and valuations, advice, solicitors fees and mortgage application fees. Although some of these can be added to the mortgage advance.

A J Properties will advise the rent achievable and the lenders will usually make their own estimate of the rent obtainable.

You must also be aware that while a good property will rarely be empty, there is always the possibility of a void period between lets, and there will be no rental income.

During the last few years investors in the private rented sector in North Manchester regions have seen some significant increases in the capital appreciation of the property, coupled in some areas by increases in rental values.