- Why UK buy to let?
Buy to let property is the jewel in the UK’s crown and has a long track record in providing rental returns and capital gains.
For UK and overseas buyers alike, British real estate is considered the world’s
most ‘transparent’ market, with established laws in place to protect owners.
The tangible nature of bricks and mortar is a popular choice for investors – the simplicity of the buy-to-let business model plus rising property
values have made it a trusted and safe option for all types of buyers.
- How does student property investment work?
One of the most popular ways to invest in student accommodation is to buy units within a fully managed development which are then leased back to a well-established management company.
Typically, the building, in its entirety, will be let out as student accommodation and the turnkey nature of the investment allows investors a fully managed approach.
As the asset receives a higher income, it becomes more valuable and saleable every year, providing owners with the security that when they wish to exit the investment,
the asset is just as attractive as when they bought it.
- What is Stamp Duty Land Tax?
Stamp Duty Land Tax (SDLT) applies when you buy houses, flats, and other buildings over a certain price in the UK.
The amount you pay will vary based on the property’s price,
whether you are purchasing a second home, and also depending on what asset class you are entering.
- What does PBSA mean?
Purpose Built Student Accommodation is often referred to as PBSA. As a fast-growing segment of the UK’s property market, PBSA offers private investors the opportunity to own a student property that is fully managed by a specialist company that understand the student market.
PSBA has emerged as the most popular avenue for investors to expand their portfolio to include student property.
- What is the outlook for UK interest rates?
Interest rates in the UK have been low for the past decade, however, the Bank of England cut rates to a record low of 0.1% in March 2020. Interest rates are expected to remain low and should they rise, we imagine it would be in small increments.
If you plan to purchase with a mortgage, please seek independent advice to secure the best mortgage product for your individual circumstances.
- What is Generation Rent?
Generation Rent is a popular term used in the UK property market. It refers to young adults (18-40) who have been priced out of the housing market.
This tenant pool is appealing to buy-to-let investors because there is a high demand from tenants who are unable to buy and instead spend a high percentage of their wages on rent.
- What is the difference between freehold and leasehold?
Freehold means that you own the property and the land it stands on for an unlimited period of time.
A Leaseholder owns the property for a pre-determined period of time and does not own the land it sits on (mainly applies to apartments). The Freeholder owns the land and Leaseholders are subject to paying additional charges including Ground Rent.
At Town Square Invest, our developments are sold on a long leasehold basis. When buying a property on a leasehold basis, we recommend buying a property with a minimum of 125 years on the lease. Anything below 60 years, will require an extension which can be costly and time-consuming plus, if you are buying with a mortgage, it may not meet your lender’s requirements.
- What is the difference between NET yields and gross yields?
A NET yield or NET returns refers to the figure you will make after the associated costs are deducted from your rental income. Gross refers to the amount before associated costs are deducted.
- What does a rental assurance mean?
Town Square Invest’s opportunities provide buyers will a rental assurance for a pre-determined time. The returns will vary depending on the property you are considering, however, the premise is the same across the board.
A rental assurance is a contractual return the buyer will be paid, in most cases, from the Developer
- What are the risks of investing in buy to let?
The tangible nature of property (bricks and mortar) has made it a popular choice for investors however, there is an associated risk when investing in any venture.
Property values may increase or decrease, you may face void periods or your tenant may not be able to keep up with rental payments. If you buy an older property, you may have to pay for repairs (a professional survey is always advised before purchasing), Ground Rent/Management Costs may increase, interest rates could go up, taxes could change. You must stress test your property investment before you buy and plan for the unexpected to make sure you can truly afford your purchase before investing.
- How do I know which property to choose?
There are plenty of property investment options available on the market and deciding which one is best for you can be difficult. It is important to take your time when making your decision – you should never feel pressured or rushed into making a decision. Ensure that you can afford the property (consider any additional costs of fluctuations in the market) and seek independent advice where necessary.
When it comes to selecting a property, you will need to consider its location, how it compares to similar options on the market, and whether there is a demand for this property type in the area. Look at any regeneration projects in the area and house price projections – do they paint a positive picture for the region? Also, consider the level of competition and avoid markets where rental properties remain stagnant.
If you can tick these boxes and meet the end user's needs, your property presents you with an opportunity to secure rental returns and capital growth over time.
- Can I get a mortgage with buy to let properties?
Yes, buy to let mortgages are a common product offered by Lenders.
You will need to do your research to determine the best option and rates available. Consider what type of option will suit your portfolio (interest-only options are available) and seek independent, professional advice before you buy.
- What are the costs associated with buy to let?
All of Town Square Invest’s returns are advertised as NET, which means that your buy to let costs are calculated in advance so you know exactly how much you will make from your property before taxes.
General buy to let costs include (but are not limited to), Management Costs, Ground Rent, Stamp Duty, Landlord Licence (depending on the location of the property), Taxes, Capital Gains (if you decide to sell), Maintenance Costs, Insurance, and Mortgage repayments and interest. These are just some of the associated costs with buy to let.
- Can I arrange a meeting?
Simply contact your dedicated property consultant who will be happy to arrange a one-to-one meeting at your convenience.
We are currently only offering meetings online in line with Covid-19 rules.
- Can I arrange a viewing?
Yes. Contact your property consultant who will be able to arrange a viewing for you. Please note that all viewings are subject to Covid-19 rules.
- Where is Town Square Invest based?
With Headquarters in Central London and a Manchester office, Town Square Invest is rapidly growing. Our experience has allowed us to attract the best talent to build our team and we look forward to welcoming clients to our offices.