With the stamp duty holiday in effect until March 2021, inquiries for residential properties up to £500,000 have grown dramatically. Many UK residents have realised the opportunity to save money on property purchases, as made possible by favourable Land Tax Stamp Duty adjustments due to COVID-19. It seems to be open season on United Kingdom residential properties at the moment, but we’re still faced with the problem of the pandemic, which complicates things substantially. Here is what you should know about the conveyancing process as applicable to buy-to-let transactions:
Conveyancing and buy-to-let
Countless reasons are given by individuals who enter into property purchases or sales: from wanting a perfect family that is suitable to raise a family in, to sourcing investment properties that will generate income through rentals. Buy-to-let conveyancing refers to the legal transfer of property ownership to a buyer whose reason for buying the property is to let it out, and this conveyancing process differs slightly from regular property transactions.
The conveyancer’s role
Purchasing investment properties should be easy, painless, and done in a reasonable period of time (as long as you have the right conveyancer). If no mortgage is involved, buyers can take on the legal processes themselves – but it is often difficult and time-consuming (not to mention frustrating if you’re dealing with a lethargic council). Here’s how conveyancing solicitors are able to handle a buy-to-let transaction and help ensure success for their client:
- Once an
offer is accepted, the instructed conveyancer will contact the property
seller’s solicitor and request the contract,
- The
conveyancing solicitor then raising any concerns regarding the contract, and
carries out the necessary inspections,
- A
conveyancer should also make sure there are no restrictions regarding renting
out the property, and they should advise their client regarding any tax and/or
environmental implications,
- If a
client is buying with a mortgage, the solicitor will ensure that they are
applied for a buy-to-let mortgage (not a regular residential mortgage),
- A
completion date is agreed upon between the solicitors once contracts are
exchanged, and the conveyancer will prepare a transfer deed,
- The
buyer’s conveyancer then draws up a completion statement, carrying out any
pre-completion searches and checks,
- On the day
of transaction completion, the solicitor will transfer the funds to the
seller’s solicitor, and send any stamp duty tax to HMRC,
- Finally, the conveyancing solicitor registers the buyer’s new property in their name with the Land Registry, and that concludes the buy-to-let property transaction.
Choosing the right buy-to-let conveyancer
Property transactions are complicated at the best of times, especially when they’re not regular transactions, and become even more challenging when there’s uncertainty in the housing market (like during COVID-19). This is an ideal time to buy a residential property in the UK, thanks to the stamp duty revisions, and with a confident conveyancing solicitor at your side – you’re guaranteed a seamless, successful buy-to-let property purchase.
Get a free purchase conveyancing quote from our team of experienced conveyancers at The Moving Hub, and feel welcome to call on our team to handle your next buy-to-let property purchase or sale.
