FAQ’s

Buy-to-let investment involves purchasing a property with the intention of renting it out to tenants. This strategy allows investors to generate rental income and potentially benefit from property value appreciation over time.

• Regular Rental Income: Provides a steady cash flow.
• Capital Appreciation: Potential for property value increase over time.
• Tax Advantages: Various tax reliefs and deductions available for landlords.
• Control Over Investment: Direct ownership and management of the property

• Market Fluctuations: Property values can decrease due to economic downturns.
• Tenant Issues: Potential for rental voids, non-payment, or property damage.
• Maintenance Costs: Ongoing expenses for property upkeep and repairs

Financing options include cash purchases and buy-to-let mortgages. Lenders typically require a larger deposit (usually around 25%) and higher interest rates compared to residential mortgages

Landlords must ensure the property is safe and habitable, comply with health and safety regulations, and manage tenancy agreements. This includes conducting regular property inspections and addressing maintenance issues promptly

Consider factors such as location, property type, rental demand, and potential rental yield. Researching local market trends and consulting with property investment experts can help in making an informed decision. Our property consultants can help you make informed decisions and provide units suitable for your financial circumstances.

Landlords must pay income tax on rental income, capital gains tax on property sales, and stamp duty on property purchases. Various deductions, such as mortgage interest and maintenance costs, can reduce taxable income. Speak to our property consultants who will help answer any specific questions you may have around tax implications.

We offer a turnkey solution including a fully managed service for your new property investment. Our team will look after the management of your property investment so you don’t have to. Ask our team for more details about our 360 management service.

Top locations include Manchester, Birmingham, and London, known for their strong rental demand, economic growth, and potential for capital appreciation. We are a full service, whole of market property consultancy with clients all over the world who invest into the UK buy to let market. We have units available across the UK.

Typically, in England, an apartment in a development will only be leasehold, with a lease length from 125 years upwards.

All property sales within the UK must go through a UK solicitor. Your solicitor won’t ask you to pay a deposit unless they have thoroughly checked your sales agreement and are happy with it.

In all developments, the service charge is reviewed in line with market rates; this is standard practice.

All developments have their own company registered at Companies House, this ensures that if anything happens to the developer or contractors, the development is ring fenced and safe from external issues.

An escrow account is an account in which your deposited funds are held by a third party. This is to safeguard the money and ensure the funds are not released to the developer in one lump sum, but at different agreed stages within the build.

You’ll still be able to have the property fully managed and maintained by the company offering the rental assurance if you wish. TK Property Group offer a lettings service and will be able to assist in the management of your property. Simply call us on +44 (0) 161 240 6060 and we’ll be able to inform you of our management fees and services.

For anything visa related, TK Property Group would suggest you contact an immigration specialist – this isn’t something we can help with, as Visa criteria can change year to year.

In many cases, a new contractor is appointed to finish the build as there is the safety of a legal first charge already in place.

Although TK Property Group recommends using a solicitor familiar with the project to keep the buying process on track and as easy as possible, you are of course free to appoint any UK property solicitor you wish.

As with any off-plan investment, your initial deposit will be tied up during construction. However, many developers offer interest on your funds up until completion to help compensate for this. Your property purchase should also increase in value during that build time, thus giving you capital appreciation. TK Property Group will always aim to provide properties with the best potential return and capital appreciation. Your money may be temporarily tied up, but it’s always growing in value.

The developer often appoints the management company, so if a management company ceases to trade then the developer will source a new company to replace the previous management if needed.

Yields can vary, depending on where and what you buy. The Northern Powerhouse is a great place to invest – regional city locations in the north of England offer the best rental yields in the UK, regularly above 6%. Yields can go up or down, but the future is ever growing for the buy-to-let market in the big Northern cities given the huge regeneration they are seeing.

Purchase costs vary between different developments.

The most common costs include:

• Legal costs
• Registration fees and Searches
• Stamp Duty
• Purchase taxes (depending on the location)

Buy-to-let property investment involves paying a variety of taxes.

Income from your property is taxed in the same way as money you earn at work and has the potential to push you into your next tax bracket.

Capital gains tax can also apply to any property you own that is not your home. It is calculated based on how much your capital has grown when you sell the property.

The above should not be construed as definitive tax advice and everyone’s circumstances are different. You should verify any tax information from HMRC or a qualified tax adviser. Taxes and allowances can change regularly, so be sure keep up to date with the latest information at the time you plan to invest.

It’s always in the developers own financial interest to complete on time, but there is also a longstop date in place to protect the client’s best interest should any delays occur.

Our investors are provided with regular construction updates and images of the build progress are supplied in regular intervals.

Investing in Buy-to-Let (BTL) property is a time-honoured choice for many investors, offering a tangible asset that you can secure passive income from over the long-term. With the expectation of steady value growth over time, the benefit of monthly rental income as well is a key driver as many investors seek to build wealth and property portfolio. Given the current housing shortage in the UK, where demand often outstrips supply, investing in BTL property presents an excellent opportunity for strong returns. At TK Property Group, we are here to guide you through this rewarding property investment journey. 

1. Selling the Property: You can sell your buy-to-let property when the market conditions are favorable. Our team can assist you in marketing the property and finding potential buyers. 

2. Refinancing: If your property’s value has increased, you may choose to refinance your mortgage, allowing you to pull out equity while retaining ownership. 

3. Transfer or Gift: You might consider transferring the property to a family member or gifting it, depending on your financial strategy and tax implications. 

4. Professional Management: At TK Property Group, we provide support throughout the exit process, including valuation and marketing strategies, ensuring a smooth transition. 

For personalised advice on the best exit strategy for your investment, please consult with our team.