- What is The Rutland Partnership?
- Who is The Rutland Partnership?
- What is the cost of buying an investment property with The Rutland Partnership?
- How do you know the discount properties offered are at genuine discounts?
- Do I need money to invest or 'no money down'?
- Can I purchase a property with no deposit - 'no money down'?
- What kind of property discounts can I expect?
- Can I use my own Solicitor or Mortgage Broker?
- Is it easy to get a mortgage?
- Can I have more than one Buy to Let mortgage?
- Are Buy to Let mortgages Capital or Interest only payments?
- What Lenders do you use?
- Can I sell my investment property when I have completed?
- How do I find a tenant?
- How much rent should I charge?
- If I purchase an investment property from Rutland what money do I layout and when?
- What if I decide not to proceed with the purchase?
- Will you manage the investment property portfolio I purchase?
- Is it best to let the investment properties furnished?
- Who pays council tax?
- Who pays ground rent and service charges on Apartments?
- Is now a good time to invest?
What is The Rutland Partnership?
The Rutland Partnership obtain genuine Developer discounts for new or experienced property investors. We specialise in both off plan, new build and near completion investment property in both the UK and overseas markets.
Who is The Rutland Partnership?
Two investors Brian Nelson and John Pownall decided to form their own investment property company after being seriously let down by similar organisations that promised fantastic discounts and ongoing support. Having become disillusioned with the high fee's and poor service received they decided to build their our own property portfolio with the help of other like minded individuals. In July last year Calum and Hamish Moir also became partners in TRP.
What is the cost of buying an investment property with The Rutland Partnership?
In most instances, The Rutland Partnership charges NO FINDER'S FEE. Commission is given to the company direct from the developer. This helps you finance other associated costs and saves you paying VAT which you may not be able to recover. There are no weekly or monthly subscriptions fees or any other hidden costs.
How do you know the discount properties offered are genuine discounts?
Before securing any property development, independent property surveys and rental appraisals are carried out. It is not uncommon for Developers to overprice their properties. It is vital to fully assess the true value of each investment property to avoid investor disappointment and down valuations as the mortgage process proceeds. It is in everyone’s interest that the true property value is established before any deal is completed. All Lenders will carry out their own valuations regardless of the stated value. If the Lender down values the investment property it could mean you have to invest more of your money for the deal to proceed. This scenario needs to be avoided. TRP turn down many investment properties that fail to meet the independent valuation required.
Do I need money to invest or 'no money down'?
You will always require some capital when you are investing in property. It is recommended that you have approximately £10.000 prior to investment. Remember you have Legal Fees and Stamp Duty to consider when you make your property investment. Furthermore, you may need some liquid funds to cover mortgage repayments when the property is unoccupied. Property investment is for the medium to long term future and is not a get rich quick scheme. The Rutland Partnership only ever recommends that serious investors contemplate entering the Buy to let market, as it does need a certain amount of capital investment.
If you have no liquid funds however you can release equity from your existing property if you have it but we would strongly recommend you consult with The Rutland Partnership or your Financial Advisors before doing so. The Rutland Partnership can refer you to suitable Financial Advisors to discuss this option and more if you wish?
Can I purchase a property with no deposit - 'no money down'?
Yes, this can be done, but only under certain circumstances. Under normal circumstances the Lender will lend you up to 85% of the property value. This means you would have to find the remaining 15% yourself. As an example, if the property you are purchasing is valued at £100.000 and The Rutland Partnership has negotiated a 15% discount this can sometimes be used as your cash deposit.
What kind of property discounts can I expect?
Normally, The Rutland Partnership can obtain discounts of between 15% and 25%. However, this does depend on the development, location and other factors.
Can I use my own Solicitor or Mortgage Broker?
Due to the structure of our deals and the time related pressures when purchasing discounted properties we always insist you use our Solicitors and Brokers. Firstly, The Rutland Partnership has negotiated excellent fees on your behalf but more importantly they understand the structure of the deal and the importance of submitting paperwork and documents in a timely fashion to enable you to complete within the timescale's allowed.
Is it easy to get a mortgage?
A buy to let mortgage is normally secured on the property you are purchasing. The Lender as part of the mortgage process may carry out a credit search on you to see if you have any adverse credit problems such as late or missed payments. In addition, they may check if you have any outstanding loans or credit card payments.
It is therefore important to ensure that you have the cleanest credit record possible. However, we can normally arrange loans for most people whatever their circumstances but if the Lender feels there is a risk in lending you the money this could also affect the interest rate offered to you.
Can I have more than one Buy to Let mortgage?
Yes. However, some Lenders will restrict the amount of exposure they have with any one person sometimes restricting them to say two mortgages.
Are Buy to Let mortgages Capital or Interest only payments?
The majority of Buy to Let mortgages are interest only repayments because the figures calculated on rental income work. Repayments on the capital aspect of the loan may not give you the rental return to cover the mortgage. Full guidance and professional advice will be provided before deciding what mortgage to apply for.
What Lenders do you use?
The Rutland Partnership use many Lenders to secure loans for property investors as their products and interest rates change on a regular basis. The Partnership endeavours to get the best possible deal for each individual investor depending on their circumstances and long-term plans. The Mortgage Brokers will always liaise directly with you to ensure they get a full understanding of your needs and the best mortgage products available.
Can I sell my property when I have completed?
Yes, you are free to sell your property at any time after all it is your investment. However, if you are serious you should really be investing in property for the medium to long-term, as the trick is to gain from year on year capital growth.
Selling your investment property immediately is one way of releasing the equity you have gained from the discounted purchase and it could be used to help fund your next investment. But it is not always that easy to sell a property for the full asking price on new build developments to make a quick profit.
When investors do this its called 'flipping', buying a property at discount with the intention of selling on immediately at the full asking price.
How do I find a tenant?
The Rutland Partnership will assist you with this process and liaise with local Letting Agents to negotiate on your behalf the best possible fee for letting and managing your property.
It is often easier to get a suitable Letting Agent to rent and manage your investment property for you. Most investors have busy day jobs and do not want the hassle of collecting rent and finding new tenants etc. It is much easier to pay a fee normally between 10% and 12% of the monthly rental income for doing so. If you do use a Letting Agent this has to be taken into account when you assess your outgoings.
How much rent should I charge?
Before securing a development, an independent rental assessment is made to ensure expected rental values are realistic. Developers can sometimes exaggerate what their properties can be let for once you have purchased it.
This is an important survey as your mortgage can sometimes be offered on the Loan to Value that is calculated on expected rental incomes. If the rental valuation falls short it can affect your mortgage offer and obviously the expected rental income.
All Rutland developments must meet stringent rental assessments prior to being accepted into the property portfolio provided by the company. However, even though a sensible monthly rental figure will be suggested to you, be aware that some investors do try and let their properties for more than the going rate and this can affect how quickly the property is let. It is better to have a small shortfall in rental income than an empty property.
If I purchase a property from Rutland what money do I layout and when?
When you decide to secure a property the first thing you need to do is let us know which property you are interested in. A Reservation Form will then be sent to you for completion. This needs to be returned with your reservation fee as soon as possible or the property you want may be released to another investor. Typically the reservation fee is normally between 1k and 2k per property. The Reservation Fee is then taken off the purchase price on completion.
What if I decide not to proceed with the purchase?
Unfortunately, Reservation Fees are non refundable as this money is paid direct to the Developer for holding the property for sale.
It is important that you fully consider your purchase before proceeding with your investment property as time delays due to cancellations can seriously jeopardise our relationship with the developer as we only have a short period of time to exchange and complete. Should you withdraw at a late stage it leaves us very little time to find an alternative investor within the allowed timescale's.
Will you manage the investment property portfolio I purchase?
Manage no, but assistance will be provided wherever possible. It can be challenging when purchasing a property especially if there is some geographical distance involved. Simply picking up the keys on completion and completing a snagging list will have its headaches if you live far away.
When you purchase through The Rutland Partnership, you are dealing with people who actively invest in property and know how and where we can help you.
What makes Rutland unique is that the Partners want a long term relationship with like minded investors and to this end we will do all we can to ensure a smooth, hassle free purchase whenever possible,
Is it best to let the investment properties furnished?
It depends. If your property is a City Centre Apartment aimed at the corporate or student sector then possibly. It all depends on the location, what the local market is demanding and what kinds of rent you can obtain. Most investors will have a mixed portfolio of furnished and unfurnished properties.
Supplying a furniture package is also an added cost to you the Landlord so you need to carefully consider your budget. Remember, before any property is let it must have floor coverings, i.e. carpets or laminated floors etc and window dressings such as blinds or curtains.
Who pays council tax?
The tenant is responsible for his or her own Council Tax on each property. However, Landlords with vacant properties can be charged 50% of the Council Tax levy.
Who pays ground rent and service charges on Apartments?
The Landlord is responsible for the payment of ground rent and any service related charges. This payment needs to be factored into the monthly rental assessment if possible and passed on to the tenant if you can.
Is now a good time to invest?
From an investment point of view there is never a right or wrong time to invest in property. History has proved that in the long term property prices do rise. However, the best time to invest is when your circumstances allow you to do so without putting too much financial pressure on you.
