Helping landlord clients with new build properties
31st January 2020
There are a number of opportunities for intermediaries when assisting landlords looking to purchase and rent new build properties.
For example, the new build buy to let mortgage application process is similar to a residential customer’s mortgage, so it’s a familiar route when it comes to helping your clients.
If your landlord client is looking to bring the property to the rental market quickly to generate income, then new builds have the advantage of not needing remedial work or renovations, meaning that the property is ready for immediate let.
New builds are also built to the latest eco-friendly standards and come with the latest heating systems and insulation, making them attractive to those looking for a property to rent. They usually have smoke alarms and security systems fitted too, making them safe for tenants and helping to protect the landlord’s investment.
However, for an older property that is in a poor state of repair, the cost of renovations such as roofing, central heating, rewiring etc. can all mount up. Undertaking these can take time resulting in a delay in bringing the property to market and generating income.
Remember also that a new build is not just categorised as a house built from the ground up. From a lenders point of view it can also be a property converted to a residential dwelling, including flats and apartments, or a property not previously used for residential purposes. These give intermediaries a wider scope of properties they can get mortgages on to help clients looking for a new build buy to let.
At Leek United we have competitive terms for buy to let mortgages that include; first time and non-homeowner landlords, who haven’t rented out a property before. There’s no requirement for a personal affordability assessment, a minimum income of just £20,000, lending is assessed on market rental return, and every case is assessed individually.
The removal of an affordability assessment demonstrates a responsive approach to non-homeowner buy to let investors seeking to boost capital appreciation on a property or plan further ahead for their retirement.
We receive enquiries from intermediaries where the new build property is bought by a parent for their grown up child, who maybe starting at university or a new job in a different town or city. In these cases, a regulated buy to let mortgage is needed, and Leek United provide a range of buy to let criteria to help in this situation even if they haven’t rented out a property before.
The buy to let market is continuing to evolve and products are regularly updated to cater for it. We work closely with Intermediaries to ensure our buy to let criteria is responsive and that every opportunity is realistically provided for in a dynamic lending environment.
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