Property Purchase Costs & Ongoing Costs

BUY TO LET PROPERTY BUYING & HOLDING COSTS

  • Reservation Fee (refunded on exchange/completion)
  • Sourcing Fee = budget for £4,000
  • Deposit = budget 25%
  • Solicitors Fees = budget for £2,000
  • Mortgage Broker Fees = budget for £999
  • Mortgage Valuation = budget for £500
  • Stamp Duty
  • Buildings & Landlords Insurance = budget for £200pa
  • Personal Guarantee = budget for £200 per person
  • Ltd Company (set up, accounts, conf statement) = budget for £1,000pa
  • ICO = budget for £40pa
  • Mortgage Arrangement Fee = usually 1%-2% of loan / added to loan
  • Monthly mortgage (usually interest only)
  • Early Redemption Charges = budget for 3% of loan
  • Contingency for Works = budget for at least £3,000/£5,000
  • Tenant Void Period = budget for 6 weeks of mortgage payment
  • EPC = budget for £80) / valid for 10 years
  • Gas Safety Certificate = budget for £80pa / valid for 1 year
  • EICR (Electrical Installation Condition Reports) Cert = budget for £100 / valid for 5 years
  • Smoke & Carbon Monoxide alarms = budget for £30
  • Maintenance Costs = budget for £1,000pa
  • Lettings Agents Fees (find, management, collection, inventory, renewal, AST)
  • White Goods
  • Furnishings
  • Ground Rent = usually paid by LL
  • Service Charge = usually paid by LL
  • Estate Charge = usually paid by LL
  • Contents Insurance = usually paid by tenant
  • Council Tax (generally tenant pays. If property empty, 1 month 100% discou8nt, then LL pays)
  • Bills (water, gas, electricity) = usually paid for by tenant
  • Telephone / Satellite = usually paid for by tenant
  • TV License = usually paid by tenant
  • Corporation Tax
  • Income Tax
  • Capital Gains Tax