Northampton Buy-to-Let: The Ultimate Legal Guide

Date Added 11.07.24

The purchase of a buy-to-let property in Northampton does involve certain additional considerations from both a legal and a financial perspective. You will also need to ensure that you can comply with the ensuing health and safety regulations and any ongoing changes in property and landlord regulations to provide a safe environment for your tenants.

Legal due diligence for property transactions in Northampton

When purchasing a buy-to-let property you will need to select a solicitor, if you have other buy-to-let properties already then it will be easier to use the same solicitor and to select a law firm where they are experts in property law.

If not then choosing a local solicitor in Northampton is the most advisable choice.

Your solicitor will need to carry out the usual legal searches and title checks and importantly will need to ensure that there is nothing on the legal title which prevents you from letting the property, this is more likely to occur if the property is leasehold so a careful review is necessary.

If the property is being sold to you subject to an existing tenancy, the solicitor will need to review the current tenancy agreement in particular if you are buying with the aid of a mortgage as the terms will need to comply with the lender’s requirements. The tenants will need to be informed of the change of landlord following the completion of the purchase, by way of the service of a notice. It can be easier to use letting agents who are already familiar with the property and they are likely to be holding a tenancy deposit.

If you find a new tenant then you will need to put a tenancy agreement in place, this is usually an Assured Shorthold Tenancy agreement for a period of between 6 months and 3 years. To end this agreement, you will need to give at least two months notice.

If the property is a House of Multiple Occupation (HMO) then there are additional considerations. An HMO is a property rented out by at least three people who are not from one family, they will share the facilities such as a bathroom, toilet and kitchen. You will need to obtain an HMO Licence from the relevant council which for Northampton is the West Northamptonshire Council and this will need to be renewed on an annual basis. Planning permission will also be needed.

Financial Considerations

If you require mortgage finance then you will need a specific buy-to-let mortgage where a mortgage lender imposes additional conditions. You will not usually be permitted to let the property to a family member. The deposit you will need to have is likely to be a greater percentage than for a purchase of a property you intend to live in.

There are also tax implications you will need to consider and it is advisable to obtain separate tax advice on these points before you proceed, this applies to both the rental income and to the value of the property.

You will want to consider the investment opportunity and rent yield of the property, whilst considering the potential outgoings.

Ownership of the buy-to-let property in Northampton

It is important that you keep up to date with the health and safety regulations to ensure the safety of your tenants and to be aware of the property maintenance legalities. You will need to be aware of any changes in property and landlord regulations.

In the event that you have a dispute with your tenant then you may need legal advice, particularly to understand the eviction process and legalities.

Talk to Tollers – Expert Northampton Conveyancing Solicitors

If you are in need of more guidance on Northampton Buy-to-Let properties, whether that be for legal consideration or other conveyancing mattersTalk to Tollers on 01604 258558 where our property law experts have all the knowledge to answer your questions and assist you.

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