Diary of a Buy to Let Purchase Part 7 - Reality bites…
Clearly rested and rejuvenated from my Center Parcs Break (anyone who has done this type of thing with children knows you come back needing a holiday. A real one. With cocktails and sun. And NO kids), today I have been tackling my new venture with aplomb.
Still setting up the bank account
First up, I called NatWest.
What they lack in IT systems and general efficiency they made up with by way of their people. I dealt with a chap called Aron, who was extremely helpful, efficient and nice.
So yes, the call did take up nearly the whole 45 minutes I was told it would take.
And yes, I had to run through the ‘second part of the application’ which was essentially, the same as the first part of the application and thus felt like pulling teeth.
And yes, I then had to sign and return some forms and now have to wait for 5+ days for any further update.
But… BUT, the guy I was dealing with was so charming, for some reason, I didn’t mind.
The fact that I have been given two years’ FEES FREE banking had NOTHING remotely to do with my change in attitude.
Crikey, had he thrown in a Nathaniel pig, I may have proposed to him then and there.
So the good news is that the bank account palaver is now off my desk until what I imagine will be the New Year and there is nothing I can do about it. Huzzah.
Buy to let mortgage application progressing nicely
I also spoke to Paragon to run through a validation call.
Now this is not normal for most lenders but something Paragon like to do. A very painless conversation, took just a few moments.
They asked some very straight questions, I gave answers and that was that – another tick on the list of things to do.
So for the mortgage application, until I get the bank account set up, I can’t do any more.
Aron at NatWest, we are now all waiting on you dear – no pressure.
Letting agents: To use or not to use; that is the question
I also had a very interesting conversation with a landlord client today, where we discussed the merits of using a letting agent.
This is something I am very torn on. The letting agents in my neck of the woods charge 10% management fees. They also charge a finder’s fee to get the tenant in (my property comes with a tenant in situ but apparently they will still charge me for this service– this is a row for another day).
My client doesn’t use agents as he feels that it’s a waste of money but instead manages his properties directly.
He is a member of the National Landlords Association and pays an annual fee of £75.
Here he can get ASTs, legal advice (he has always found them to be excellent), and there are also services where the property can be advertised very cheaply (a whopping £12 to be listed on Rightmove) and a tenant vetting service is on offer.
And here we go back to my lazy streak for the gazillionth time. Of course, saving costs wherever possible is attractive but do I really have the time (read ‘can I be arsed’) to do this myself?
It dawned on me today that I am actually (probably) going to have a buy to let property at some point in the not too distant future, and will need to start giving some thought to this sort of stuff.
My client started talking about deposit bonds, smoke detectors, Landlord Accreditation… I will admit it, I started feeling a bit panicky.
Thankfully, my solicitor has sent me paperwork equivalent to that of the Encyclopaedia Britannica to read through, so I can delay worrying about the realities of actually being a landlord for a few more days at least.
Diary of a Buy to Let Purchase
Follow Jeni as she recounts her experiences of becoming a buy to let investor for the first time.
Part 1 - It was that or a Range Rover
Part 2 - I've made £800 already and I haven't got the mortgage yet
Part 3 - The demise of Nathaniel Pig
Part 6 - Business bank account interview or Center Parcs?
Part 8 - The method behind the madness
Part 9 - Join me in a buy to let fist pump?!
Part 10 - The silence is deafening
Part 11 - Throwing toys out of prams
Part 12 - Stuck with the Mini... for now
Part 14 - The end of my sad little tale...
Part 16 - A year on my buy to let portfolio grows by default
Part 17 - If Carlsberg made tenants - shame the same can't be said for the tax man
Part 18 - Always open the envelope
Part 20 - Buy to let mortgages and tenants are like buses
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