Looking To Buy An Investment Property?
Whether you are looking to purchase a buy to let property to generate a monthly income, acquire a growing asset for the future (Your children) or simply prefer to have your savings in bricks and mortar (as it offers a far more attractive return that your high street bank), Logic View can help.
- Where do I buy?
- Why there?
- How much deposit will I require?
- How much will I need for stamp duty (New legislation as of 1st April 2016)
- How much will my legal fees come to?
- Which solicitors will act for me?
- Who will advise and arrange the best possible mortgage for me?
- Who will ensure the property has the necessary certificates ready for letting?
- Who will ensure the property will be decorated ready for the rental market?
- Who will advertise, rent and manage my investment property?
- Will I be left with no headaches, just monthly income in my account?
These are just some of the questions that can be overwhelming when looking to purchase an investment property.
We will guide you step by step through the process, eliminating stress and time consuming or costly errors. Effectively, under your instruction, we will purchase a property on your behalf and see it all the way through to it being rented and generating you an income.
What do I do if I want to buy a property and do not know where to start?
- Book an appointment to discuss your situation and what you wish to achieve.
What happens at the appointment?
- Once you have told us what your objective is, we will then be able to advise you of what you are likely to achieve, what kind of property you can buy and what income you can expect to earn from it.
- This will be determined by exploring your buying options, whether it is via your personal savings or through your existing property or properties.
WHAT IF I’M NOT IN A POSITION TO BUY ALONE? CAN I BUY WITH A FRIEND OR START A SYNDICATE?
In the event you’re present situation does not allow you to purchase an investment property alone, then yes, there are other options. Think of the phrase ‘many hands make light work’. There are options to bring friends and family in on your investment plans or to buy shares into a property syndicate.
(Please ask for more details if this is of interest) Essentially, Logic View will set up a new company. Once enough shareholders have funded the required amount to purchase appropriate property, every share holder will receive profits according to their share percentage.
What are next steps after appointment to get things moving?
- We will arrange for our dedicated broker from Informed IFA (Independent Financial Advice) to contact you. This will be to make your acquaintance and commence any releasing of capital if required or to get an AIP (agreement in principal ready for your proposed purchase).
- Logic View will actively source you a suitable property via the contacts we have with local agents and our own resources within 4 main boroughs (Haringey, Hackney, Islington and Dagenham & Redbridge)
- Once a suitable property has been found, Logic View will present you with figures of buying costs, any refurbishment costs, monthly figures of mortgage and proposed rent as well as all relevant information on the property (Whether freehold or leasehold, service charge-if any etc)
- If you are happy with the figures, you will be welcome to inspect the property. After final confirmation, you will be asked to sign Terms & Conditions.
- At this point we instruct all relevant parties to get started. Solicitors will commence work on your purchase and require £500 in order to do so (Deducting off your final bill) and your broker will contact you in order to complete and submit a mortgage application for you.
- We will see the sale out through to completion, dealing with any agent, seller, solicitors and broker on your behalf.
- Once you have completed, we will get estimates/necessary certificates carried out in order to get your investment ready to rent as soon as possible
- Logic View will rent and manage your property for you. See options at: Lettings and Management
- Sit back, relax and watch your income arrive in your account each month
What fees do I pay and when?
- The fee for this service is £2500. £1000 will be payable once you confirm you wish for us to commence work and source you a suitable property.
- The balance will be payable upon completion.
- There are no other fees payable in respect to sourcing a property and dealing with it through to completion.
Can you give me an example of a property investment purchase?
Example based on a 2 bed flat in Haringey at £300,000
|Mortgage details||Interest only, 25 year term, 3.89% interest rate|
|Deposit||20% of purchase price (£60,000)|
|Stamp duty||£5000 (Please note; this may vary as of and after 1st April 2016)|
|Legal fees||£1800 approx|
|Survey fee||£150-600 (Varies upon mortgage product and property)|
|Logic View fee||£2500|
|Initial outlay||£69,200 – £69,600|
|Necessary certificates||£250 if no issues|
|Decorating/remedial works if any||TBA|
|Total outlay||£69,450 – £69,850 + any potential decorating costs|
|Monthly mortgage payments||£778|
|Monthly service charges/ground rent||£50 (May vary depending on property type/Tenure)|
|Total monthly outgoings||£828|
|Proposed monthly rent||£1300 – £1600|
£472 with rent at £1300 per calendar month
£572 with rent at £1400 per calendar month
£672 with rent at £1500 per calendar month
£772 with rent at £1600 per calendar month