The third ARLA, CML buy-to-let guide covers areas as wide apart as money laundering, electrical safety and general insurance products as regulated by the Financial Services Authority.
The guide carries up to date overviews of buy-to-let mortgages from the perspective of lenders specialising in different areas of the market as well as the independent mortgage broker's eye view and a look into the future.
Other sections describe how mortgage lenders will view the borrowing requirements of buy-to-let investors. They also examine how investors themselves should determine the levels of their borrowings against capital values and likely rental income. Guidelines include the reasonable proportions for loans to value, LTVs, and the 130% rule for rental income.
Case studies explore typical buy-to-let investments and include a new sector for investors to consider. This is the provision of property to provide community housing for local authority requirements.
ARLA believes that buy-to-let investors have helped to bring the private rented sector into the 21st century by improving standards, meeting market demands and by making renting socially acceptable once again.
In his forward to the Guide, Adrian Turner, chief executive of ARLA, says: “Buy-to-let still has a vital role to play in the rental market and in personal financial planning for many individual investors.”
Research shows that investors who have decided to include property in their financial planning expect it to be a long term investment, for an average of 16 years.
Michael Coogan, director general of the CML, says: “Buy-to-let has contributed to the recovery of the private rented sector over the past decade and has increased the number of individuals who are landlords ranging from first-time landlords to professional investors with significant property portfolios.”
New developments of importance to landlords and examined in detail in the guide include model tenancy agreements, the tenancy deposit scheme for regulated agents and the changes in stamp duty that are now an obligation on the tenant if the aggregate rent is £60,000 or more. There is also a look at the year ahead for buy-to-let.
The ARLA, CML buy-to-let guide has comprehensive sections on getting value for money when building and decorating rental property to meet the expectations of tenants. These sections also describe how to find the right builder, how to avoid cowboy builders and even how to do it yourself.
The ARLA section gives a comprehensive picture of the role of letting agents and the questions that every investor landlord should ask of them. There is also a full listing of all the offices of ARLA member letting agents.