If you’re purchasing an investment property, you will need an expert buy to let conveyancing solicitor to guide you through and carry out the legal side of the transaction on your behalf. In this article, we will be exploring the key things you need to know about the buy to let conveyancing process so you can go into fully prepared, which will help the purchase go smoother and more efficiently.
What is buy to let conveyancing?
The definition of buy to let conveyancing is essentially the legal process for transferring ownership of a property to you as an investment that you plan to let out and not live in yourself. The process starts when your offer on a property is accepted and is ongoing until the day you get the keys to your new investment.
Who does buy to let conveyancing?
We always recommend using a conveyancing solicitor to complete the buy to legalities for you. If you aren’t buying the property with a mortgage, it can be possible to carry out the conveyancing yourself, but it is difficult and time-consuming, and there is more risk of a mistake occurring if you aren’t fully confident or experienced in the process.
The buy to let conveyancing process
There are multiple important legal steps when buying an investment property:
- Your offer is accepted, and you contact Toomey Legal
- Your dedicated conveyancer from our team contacts the seller’s solicitor to access the contract pack
- Then they check the contracts, raise any enquiries, and conduct important local searches
- The conveyancing solicitor should ensure there are no restrictions on renting out the property. Also, they will be able to offer advice on broader issues like tax implications or environmental and planning law. So, if you have any questions about the future plans for your investment property, it’s best to ask and explore them sooner rather than later.
- If you are purchasing the property with a mortgage, your solicitor will check that you have the right type of mortgage needed. You will require a buy to let mortgage instead of a normal residential mortgage.
- Your solicitor will draw up a contract for you to sign and help you with any other legal documents required with your buy to let like a deed of trust or a tenancy in common agreement.
- A completion date is agreed and set and both parties’ solicitors exchange contracts. This means you are now legally committed to purchasing the property.
- Your conveyancing solicitor puts together a transfer deed and sends it to the seller’s solicitor ready for completion.
- Next, they prepare a completion statement and conduct any pre-completion searches. If you are buying with a mortgage, your conveyancer will ask the lender to advance the loan.
- On completion day, your solicitor will send the purchase amount to the seller’s solicitor when they know the property has been fully vacated.
- Your conveyancer or solicitor will send any stamp duty to HMRC. Keep in mind with a buy to let property, you might have to pay the extra stamp duty rate.
- Finally, the property is registered in your name with the Land Registry.
With buy to let conveyancing, your solicitor might also be able to assist you with the required legal documents for when you’re renting out your property, such as a tenancy agreement.
Buy to let mortgage conveyancing
If you’re using a mortgage to buy your investment property, this is something you will have to organise yourself. During the conveyancing process your solicitor will ask for a copy of your mortgage from your lender. They will then talk you through the conditions of the mortgage and highlight anything you need to be especially aware of.
Your lender will need a mortgage valuation which is normally completed during conveyancing. The mortgage lender handles this as they want to check that the property you are buying has suitable value to cover the loan. Additionally, you need to have any other surveys carried out during this time. The type of survey you get will be your decision as there are a few different options available to you.
Prior to the exchange of contracts, your lender will also ask you to take out buildings’ insurance. As soon as you have exchanged, you are responsible for the house, so it is in your best interests to take out the insurance and protect yourself.
If you need help with buy to let conveyancing, our team of experienced buy to let property solicitors in Newcastle can help. All our conveyancers are professionals and skilled in their field so you can feel confident that your legal needs are being managed with precise accuracy and care. Contact us today to discuss you needs and get started.