Beacon Mortgage Solutions Buy to Let Checklist Offers Property Management Peace of Mind
Sussex-based Beacon Mortgage Solutions (www.beaconmortgagesolutions.com) has produced a six-point checklist for those looking to capitalise on the continuing boom in buy to let properties.
(PRWEB) November 3, 2006 -- Sussex-based Beacon Mortgage Solutions (www.beaconmortgagesolutions.com) has produced a six-point checklist for those looking to capitalise on the continuing boom in buy to let properties.
"Buy to let mortgages have become immensely popular in recent years, and that demand has encouraged mortgage providers to offer increasingly attractive arrangements," says Beacon director David Piper. (http://www.beaconmortgagesolutions.com)
"We calculate that the number of buy to let mortgages has risen almost 500 per cent in the past five years or so and, despite several much publicised scare stories, the vast majority of borrowers' experiences are entirely positive."
Nevertheless, Piper concedes, there are pitfalls. "The unwary can come badly unstuck," he warns. "As with so many other property and finance issues, it really does pay to take professional advice – the outlay is minimal, but the peace of mind is invaluable."
Television's "Tenants From Hell" series has highlighted the worst-possible scenarios, but even the most commonplace problems can still prove very expensive.
"Only recently, we heard of a case where a tenant simply stopped paying her relatively modest rent," says Beacon's David Piper. "By the time the courts had granted an eviction order, the debt had reached £5,000, and it cost the owners a further £2,000 to clean up the property."
"Commonsense precautions can eliminate many potential problems with buy to let properties, and make life as a landlord infinitely easier – and very rewarding."
Beacon Mortgage Solutions' (http://www.beaconmortgagesolutions.com) six-point checklist for buy to let peace of mind includes:
| | - Always ask for, and follow up, references – including one from the prospective tenant's current employer. Check how long he or she has been in the job.
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| | - References from previous landlords are invaluable. If possible, speak to them personally.
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| | - It may be possible to secure a guarantor for the tenant; if that is not appropriate or possible, use a credit referencing service (at a cost of around £25).
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| | - Ensure the tenant signs a proper contract, and pays a deposit equivalent to at least one month's rent.
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| | - Take a photocopy of the tenant's passport, and note his or her National Insurance number. Should it become necessary to trace them later, these will make the search easier.
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| | - Alternatively, employ an agent to handle all of the above. The Association of Residential lettings Agents (ARLA) and the National Association of Estate Agents (NAEA) both adhere to rigorous codes of practice.
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Eastbourne based Beacon Mortgage Solutions http://www.beaconmortgagesolutions.com is an appointed representative of the Mortgage Next Network Limited, which is authorised and regulated by the Financial Services Authority.
Mortgage Next Network Limited is one of the largest mortgage distribution companies in the UK – in the 2005/06 financial year it completed around £4 billions' worth of mortgage business – and is entered on the Financial Services Agency register (http://www.fsa.gov.uk) under reference 300886.
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