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Rush to buy as landlords aim to beat stamp duty hike

There’s certainly an increase at the moment with property investors looking to buy before April in order to avoid having to pay higher stamp duty rates.

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For investors seeking to enter the ‘buy to let’ market or add to a current portfolio there really isn’t any time to lose and we advise buyers to ensure they have a good, responsive solicitor and that they have taken the right mortgage advice. A good mortgage broker will help identify the lenders who can move quickly and get an offer out in time.

Chancellor George Osborne announced in the Autumn Statement that landlords and investors will pay a 3% surcharge on stamp duty rates from April.

On the ground, we have noticed investors keen to buy before the middle of February so that they can complete by April and avoid the extra stamp duty.

Because of the tight time frame, there is more risk in buying a property in a chain because of the chance of fall-through of the sale, leaving even less time to complete a transaction. Landlords may well opt for vacant properties, tenanted properties or even new-build instead where there is no such risk and they have certainty of sale.

Our Property Finding Service:

Through our parent company ‘Residential Property Group’, http://www.residentialgroup.co.uk/ we continuously review investment opportunities throughout the UK and we are not geographically constrained. Each opportunity is assessed on a project by project basis on its own merits.

As always, due diligence of the unit(s) concerned is imperative.

Importantly, any investment should meet the basic rules of a STABLE RECURRING BLENDED RETURN made up of capital appreciation and rental yield.

It is imperative that you select the right area, the right location, the right development, and the right unit(s) in which to invest. A poor purchasing strategy (or indeed exit strategy) can have drastic effects upon the total return.

It always amazes us that people use stockbrokers to buy shares and use estate agents to sell houses but often do not use property finders to buy investment property. Many investors are not able to do this in depth research, nor are they familiar with the local market. This is why we offer our property finding service.

At Osprey Lettings, we know the local markets, we have the contacts and we are therefore best placed to advise and assist our existing as well as new landlords.

It means you are being hand-held in what can be a complex purchase procedure, it means being confident in the decisions you have made to invest, and it means that we do not just source a property then run, but once sourced we will manage the property, and that we hope to forge a long term relationship with all our clients, old and new.

Osprey Lettings can act as property finder for you the buyer (not an estate agent acting for the seller). We can let and manage the property for you (ensuring a seamless hassle free service) and we aim to considerably increase the chances of you attaining a higher total return for your property investment.

For further information, please contact either of our offices at Oakham (01572 756675) and Kettering (01536 519908).

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