buy to let mortgage : Should You Furnish ?

2007-03-08 10:33:40

( Financial )



When you apply for mortgage you can get a buy to let mortgage. Whether you have 15-year mortgage rates or longer, you will need to decide whether or not to furnish the property when you let it.

Recently there has been a trend in the buy to let mortgage market for owners not to furnish the properties they let. This is due to many factors:
• relatives lend old furniture to tenants
• furniture stores which offer interest-free credit
• couples having two disposable incomes and their own preferences
• economic changes which attract older tenants with their own furniture
• stringent furniture regulations.

Unfurnished property is often called “part-furnished” because it only lets successfully if it is partially furnished with curtains, carpets, fitted kitchens, electrical fittings and attractive bathrooms. A “part-furnished” property which lets successfully should look like a show house.

A few decades ago people preferred to let furnished properties because:
• disposable incomes were lower
• furniture was expensive
• unfurnished property was a target for sitting tenants (though this has changed with laws made a couple of decades ago).

The only place in the buy to let mortgage market where furnished property to let is popular is in the specialized corporate market in central London.

This trend toward unfurnished property to let is welcome if you want to take out a buy to let mortgage. To let your property easily all you need to provide is quality neutral background décor which any incoming tenant can use as a backdrop for their own choice of furniture. Electrical fittings should be fixed because you cannot rewire the property with each change of tenancy.

The trend is also welcome because of stringent furniture regulations, which, if the landlord provides the furniture, have to be complied with. The furniture also needs to be correctly labeled and pass a series of tests.

However, even if the tenant brings his own furniture, you, the landlord, will be held responsible for the safety regarding appliances and gas installations. You need to check their safety annually and keep proper records. You should also have carbon monoxide / smoke detectors fitted.

The regulations are not difficult to keep but you will need expert guidance. It is not costly but you need to consult a letting agent who understands the complexity of the regulations in terms of the updating and changes that occur.


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