BUY TO LET PROPERTY BUYING & HOLDING COSTS
- Reservation Fee (refunded on exchange/completion) – usually £1,000 – £5,000
- Sourcing Fee = budget for £4,000
- Deposit = budget 25% of purchase price
- Solicitors Fees = budget for £2,000 (includes legal fees, disbursements, land registry fees, seacrh fees). Usually a solicitor will ask for search fees first (approx £250 – £350).
- Mortgage Broker Fees = budget for £999
- Mortgage Valuation = budget for £500
- Stamp Duty (tiered and based on personal circumstances)
- Buildings & Landlords Insurance = budget for £200pa
- Personal Guarantee = budget for £200 per person (usually complusory if buying property via a Limited Company)
- Ltd Company (set up, accounts, confirmation statement) = budget for £1,000pa
- ICO = budget for £40pa
- Mortgage Arrangement Fee = usually 1%-2% of loan / added to loan
- Monthly mortgage (usually interest only)
- Early Redemption Charges = budget for 3% of loan
- Contingency for Works = budget for at least £3,000/£5,000
- Tenant Void Period = budget for 6 weeks of mortgage payment
- EPC = budget for £80 / valid for 10 years
- Gas Safety Certificate = budget for £80pa / valid for 1 year
- EICR (Electrical Installation Condition Reports) Cert = budget for £100 / valid for 5 years
- Smoke & Carbon Monoxide alarms = budget for £30
- Maintenance Costs = budget for £1,000pa
- Lettings Agents Fees (find, management, collection, inventory, renewal, AST)
- White Goods
- Furnishings
- Ground Rent = usually paid by LL
- Service Charge = usually paid by LL
- Estate Charge = usually paid by LL
- Contents Insurance = usually paid by tenant
- Council Tax (generally tenant pays. If property empty, 1 month 100% discount, then LL pays)
- Bills (water, gas, electricity) = usually paid for by tenant
- Telephone / Satellite = usually paid for by tenant
- TV License = usually paid by tenant
- Corporation Tax
- Income Tax
- Capital Gains Tax