We do everything possible to make the Buying Process as simple as possible. Remember that it really is simple when you know how.
1. Choose the correct property that we introduce you to either through us meeting, alternatively, we can send information about the current flats we are working on to you.
2. When you have gone through the due diligence and cash flow analysis and made your decision, we will email an initial reservation sheet to you for completion. On this form, you will include your buying entity and contact details. Our advice is to keep it simple. The more complicated with trusts and nonstandard structures, the more the costs and complexity to operate. It is preferable to purchase in your personal name or in a UK Limited company.
As per FICA (Financial Intelligence Act) you are required to have a UK bank account. The account is also necessary as a rental deposit account.
3. We will then introduce you to your solicitor Helen and her team from Donn and Co in Shropshire.
Donn and Co are a small family attorney firm and they look after you and your investment. Their fee structure is highly competitive, for example, approximately £600 for the transaction as opposed to for example major metro attorneys who may charge over £1600. In the UK the seller and the buyer each have their own attorneys. Your attorney will look after your interests and protect you during the process and afterwards.
4. Helen will email her client acceptance form to you and in turn, you sign and return the form to her and make a deposit of around £300.
5. There are also two contractual steps to buying.
The first is what the attorneys call exchange of contract. This is when the sellers' attorney sends through the purchase contract and the report on the property.
Helen will, on your behalf, go through the contract in great detail and anything she is not happy with brings to your attention. At this stage we have done our own due diligence and the developer will not have purchased if there was a problem with the property.
Once you are happy with the contract the two attorneys exchange contracts. At this point, you are legally bound to buy the property.
6. If construction and refurbishment work must be done (which is 90% of the time) then the developer will complete this within a certain period. Once it is complete and received building inspectors and council inspectors approval, then the two attorneys legally complete on the flat.
The flat then becomes your property. You will receive your title deeds approximately two months later. Helen sends you a copy and keeps the original in her office safe.
7. Our rental department kicks in and we start the process of tenanting which can take anything from a few weeks to two months.
Once a tenant has been approved you will receive the lease to sign and the first rental cheque should be paid a month after that. Rentals are not taken on by calendar month. They start at any day of the month and will be paid out pro rata around the 10th of each month. If your tenant moves in 28th of the month you will get paid out for the week on or around the 10th of the following month.
8. In certain areas of the UK, you will require a Landlord license which lasts 5 years and costs approximately £400. This has been set up by local councils to regulate the buy-to-let market. We always include the licence amount in the cash flows.
9. If you are not based in the UK you will need to register as a NonResident Landlord so that you are not taxed at the point of rental collection. This will only apply if you purchase in your own name. If you purchase in a limited company, then it is run like a company. Our accountants - Exceed UK - can assist with both of the above!!