What is Buy to Let?

Last updated: December 2020 | 4 min read

“Buy to Let” is a type of conveyancing which is specifically tailored for those who would be purchasing a property to further rent it out to tenants.

What kind of property should you purchase?

If you are planning on purchasing a property to rent it out to tenants, you should consider the type of market you would want to sell to, i.e. students, young couples, family with children. You should focus on aiming for people who are a suitable choice for renters. You may want to rent it out yourself or have an agency take care of it for you.

Buy to Let mortgages

For Buy to Let mortgages, you will require a good credit record. In addition to that, you may find the interest rates on Buy to Let Mortgages are on the higher side as compared to a residential mortgage. This is essentially because of the risk involved in the case you are unable to find a tenant.

Risk of losing your investment

If you cannot find a tenant for your new property and cannot make the mortgage payments, you will risk the entire amount you have invested in purchasing the new property.

Do you need a solicitor or licensed conveyancer?

For conveyancing process, you will need to hire either a solicitor or a licensed conveyancer. However, for But to Let conveyancing, it is highly recommended that you hire a solicitor rather than a licensed conveyancer to carry out the conveyancing process on your behalf, especially if you planning on taking out a mortgage to finance the investment.

Buy to Let process also involves more legal paperwork than residential conveyancing. Further, Buy to Let mortgages are differently structured than a residential mortgage as your rental income will have to cover the cost of the mortgage and expenses such as insurance, repairs, and any (if the case is so) letting agency fees.

Furthermore, a solicitor may also guide and help you with the legal and administrative side of further renting out the property for which you will require a tenancy agreement.

You will also have to keep yourself updated with tenancy laws, as they might affect the profit you may be making on the property or if you want to move for eviction of your tenants.

Buy to Let Conveyancing cost

Hiring a solicitor for Buy to Let conveyancing is a must. It means that the conveyancing cost will be higher as generally a solicitor charges more than a licensed conveyancer.

Furthermore, if you plan on taking out a mortgage to buy the additional property, it will generally cost you more than residential mortgages as the interest rates are higher on Buy to Let Mortgages.

You are also likely to incur stamp duty cost, which forms a major cost component in conveyancing.


Buy to Let conveyancing is a good way to invest your money. However, there are some things you should watch out for.

Unless the new property is the first property you own, you must bear the stamp duty cost. Additionally, you may also run into problems with your tenants. Most importantly, if you cannot keep up with the mortgage repayment, you will lose all of your investment up till that point.

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