Thinking of investing in rental property? Below are answers to some key questions about buy to let investment properties:

A.    Why should I consider buy-to-let property?

B.    How do most buy-to-let investors raise finance?

C.    What fees are involved?

D.    Who arranges the legal process?

E.     Who will furnish the property?

F.     How secure is my money?

G.    How much deposit is required?

H.    How long should I invest for?

I.     How is the mortgage paid?

J.     How long is the mortgage for?

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Many people started investing in buy-to-let property because they became disillusioned with investment returns in stocks and shares, mutual funds, unit trust and private pensions. The main attractions of investing in property are:

• It is an asset that is real – you can see it, use it, rent it, improve the value of it

• Increase in buy-to-let purchases. In recent years, the Government has been talking about a black hole in the UK's pension system and this has made a lot of people start looking at alternative arrangements for their pension and buy-to-let investment is one such alternative

• The migration of Eastern Europeans that have recently joined the EU. On the 1st of May 2005, 10 former Eastern European Countries joined the EU. This has resulted in the migration of the citizens of these countries to seek work and a better life in UK. This again is leading to further demand on the housing market

• Migration of UK people to the South East of England where there are better career prospects

• Long-term capital value has risen by 7% per year on average – this is over the last 25, 50 and 100 years (note: this does not necessarily have to continue!)

• Property can produce attractive rental income

• Property can be managed by letting agents – hence there is no critical requirement to be close to them – hence investing in property can be a “virtual” job

• There is a shortage of supply of housing in the UK, and hence with strong employment, high GDP growth and more single households will support prices and increase the likelihood of potential capital gains

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We charge a sourcing fee of £1995, which includes:

• Source property in prime location

• Acquire furnishings and arrange installation

• Act as your agent through the whole process

• Arrange with the letting agents to ensure that the property is rented out ASAP

In addition, there are the mortgage broking fees, which are normally 1% of the loan amount. See the section on How It Works to get a breakdown of the costs involved.

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We can arrange this and will recommend that you use our nominated solicitors. It is important to point out that solicitors are independent and do not work for Stanford Estates. The benefit to you is the competitive rates we have negotiated.

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We will furnish the property for you. Stanford Estates provides a furnishing pack at a preferential rate of £3000 per property. This cost is a minimum and the actual type of pack depends upon the property purchased.

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We never handle your money, it will always be held in your solicitor’s accounts to give you full security. The properties will be owned outright in your name, giving you further peace of mind.

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It’s normally 15% for UK residents and 30 % to 35% for foreign nationals. Stanford Estates have sourced a number of new build apartments across the UK where the developer is offering to pay 5% deposit, stamp duty and £500 toward your legal fees.

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We recommend you invest for at least 5 to 10 years. However, you are free to sell your property at any time.

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The mortgage is paid by direct debit from a UK bank account. Therefore, you must have a UK bank account in order for our brokers to process your mortgage application. All mortgages are arranged on an interest only basis.

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The mortgage is normally arranged over a 25-year term. However, you have the option to select a shorter period.