Buy to Let Conveyancing – What You Need to Know.
Buy to Let Conveyancing
When buying a property, it is always best to have an experienced solicitor/conveyancer deal with the transaction for you. Especially when you are looking to buy an investment property, as there are several additional steps involved in the transaction that you do not have with standard residential purchases. In this article we explore buy to let conveyancing, with a focus on the conveyancer’s side of the transaction.
What does a conveyancer do when dealing with a Buy to Let?
As with all conveyancing, your solicitor/conveyancer will review the title to the property and raise any enquiries they consider necessary in respect of it. From the point of view of a Buy to Let property, they will need to establish early in the process that there are no restrictions stopping you from renting the property out; this is particularly important in the case of Leasehold or former Local Authority properties, which do sometimes have restrictions placed on them in regard to use.
Your solicitor will also need to check the results of the usual searches, such as Local Authority, Drainage and Water and Environmental searches, and report back to you on the findings.
If the property is being sold with a sitting tenant, your solicitor/conveyancer will raise queries with the seller’s solicitor to confirm the following:
- That the seller and the tenant are not in any sort of dispute;
- That the rent is paid up to date;
- That the seller will notify the tenant of the sale;
- The seller must provide confirmation that the tenant will be required to pay the rent to the buyer in the future.
It will also be necessary to check if the seller obtained a rental deposit from the tenant and where it is held. Any deposit taken by a landlord from the tenant should be held in a Tenancy Deposit Scheme; some of these schemes allow the deposit to be transferred if the property is sold and your conveyancer will check this for you.
It is not normal for your solicitor to review the ‘Assured Shorthold Tenancy’ on your behalf, as this a specialised area of law, unless specifically required by your mortgage lender. Please note, any tenancy agreement will need to be fully compliant with your mortgage lender’s requirements.
When reviewing the tenancy agreement, the solicitor will simply be looking to see if the terms are sufficient for the purposes of your lender; they are not, as conveyancers, in a position to comment on the remaining terms of the tenancy agreement.
On completion of the transaction, your conveyancer will submit the Stamp Duty Land Tax form and arrange for the payment to be sent to H M Revenue and Customs. Please note, if you own any other property at this time, you will have to pay Stamp at the higher rates. More information regarding Stamp duty can be found on the gov.uk website or by clicking here.
Finally, your conveyancer will submit an application to the Land Registry to register the property in your name and forward a copy of the completed title once received.
Talk to Tollers
Buy to let conveyancing has many similarities to regular conveyancing with extra measures to ensure the purchase is up to standard and suitable for letting.
If you are looking to purchase a property to let or are seeking advice on buy to lets in general… Talk to Tollers on 01604 258558, our experience conveyancing team are on hand to guide you through the process.