Let to buy – an alternative strategy?

At Rolfe East, we have an impressive record for sales success in all market conditions. However, there are times when the market in the UK is not as lively as we would like and, at times such as these, we recommend considering alternative strategies such as let to buy.

Our ARLA* registered advisors use their vast knowledge of the property market and expertise to help you weigh up the pros and cons of let to buy, assuring you of a balanced and considered view. Searching through our large database, we can find you the perfect tenant for your property as well as find you your next dream home.
 
* Association of Residential Letting Agents

What can let to buy offer?

The bottom line is that let to buy can offer an escape from the sometimes drawn-out procedure of selling one home to buy another, including during times when the housing market is weaker or when there are more than the average number of homes for sale on the market. It allows for a speedier moving process because the move is no longer so dependent on the sale of your existing property, thereby avoiding lost opportunities to buy that dream house. It also offers the distinct advantage of giving you a regular income from the rented property and an investment for the future should you choose to continue with the arrangement in the longer term. In addition, it is an excellent basis from which to start building a property portfolio to act as a long-term pension plan.
 
Today, in the UK, the lettings market is strong with young people forming the backbone of the rental sector. On average, first-time buyers are in their thirties but, since most people leave their parental home in their early twenties, there is a decade in which they will want a property to rent before buying. Business people who move when their firms relocate also rent. Good news for those looking to let to buy as what could be better than someone else effectively paying your mortgage for you!

How we can help you

If we have found you your perfect future home, offering you the space you need and in the area you want to live in, but you are worried about the time it might take to find a buyer for your existing home and the delays that are sometimes an inevitable part of the process of being involved in a chain, then we can advise you on how to let your property in order to leverage its capital value and rental income to boost your borrowing potential for your new property. We can also advise you on the latest developments with capital gains tax legislation to minimise your liability.
 
If you are only interested in a short-term let to buy, then we can help you by finding a tenant willing to pay you a weekly income whilst we market your house, giving you money towards your moving costs, and can negotiate with your tenants to allow viewings for potential buyers while they live there.

Let to buy mortgages

Our affiliated financial advisors can help you find a solution that best matches your circumstances, whether that be a special ‘let to buy’ product that allows you to borrow money to buy your new home while your existing residence is let or a remortgage of your existing home to free up some capital towards your new home. The rules for let to buy are slightly different from buy to let in that you may be able to borrow a higher proportion of the property value and also lenders will generally exclude the existing mortgage from their calculations, offer you the new mortgage on normal income multiples and allow you to have both mortgages at normal rates of interest. As independent advisors, they have access to over a hundred mortgage providers and therefore an extensive range of products to choose from.
 
For more information, call your local Rolfe East office or, for advice on the best mortgage solution for your let to buy requirements, please ask to speak to one of our affiliated Financial Services Advisors.