Business Categories
Property Investment
Deal sourcing, buy-to-let, HMOs and joint ventures: how property investment firms work and what to check before you trust one with your money.
Property investment services in the UK
Property remains one of the most popular ways to build long-term wealth in the UK, but it has become a more specialist business. Higher borrowing costs, tougher rules for landlords and changes to tax mean investors increasingly rely on professionals to find, check and manage their deals.
The firms listed in this category cover different parts of that work. Some find properties, some advise on strategy and some introduce investors to each other. Knowing which is which makes it easier to choose the right help.
Deal sourcing
Finding and checking investment properties against an agreed brief, with comparables, rents and costs set out in a deal pack.
Buy-to-let advice
Help choosing areas, property types and tenants for a single let, and working out whether the numbers stack up.
HMO investment
Shared houses let by the room, with higher rents but more management, licensing and planning rules to follow.
Lease options
Agreements to control a property now with the option to buy it later, usually suited to experienced investors.
Commercial property
Shops, offices and mixed-use buildings, with longer leases and different lending and valuation rules.
Joint ventures
Partnerships between investors who bring money, skills or time, set up with a written agreement and legal advice.
Choosing a property investment company
Anyone who handles your search, your deal or your introductions should be able to show how they work and who they answer to. Before paying a fee, check that the firm:
- sets out its terms and fees in writing before any work starts
- belongs to a property redress scheme and holds professional indemnity insurance
- is supervised for anti-money laundering and registered with the Information Commissioner's Office
- shows its working, with sold prices, evidenced rents and full purchase costs for every deal
- is clear that it does not give regulated financial or mortgage advice, and points you to independent brokers and solicitors
In the East Midlands, for example, LAT Property Investments are a Derby-based firm that source buy-to-let and HMO deals for investors across the Midlands and the North, with the fee payable on completion rather than up front.
Costs to budget for
The purchase price is only the start. Most buy-to-let lenders ask for a deposit of at least 25%, and stamp duty is charged at higher rates on additional properties. On top of that come legal fees, a survey, lender and broker fees, any repair or refurbishment work, and the cost of furnishing or licensing the property where needed. A good adviser will list every one of these before you make an offer.
