Investing in Property - Things you Might Not Have Considered
With mortgage rates at their lowest in decades, many people will be deciding that now is the right time to buy a new property, whether it is their first home, the next step on the ladder or as a buy-to-let investment. Others could be deciding to remortgage to release equity or fund home improvements.
Whilst you know that you need to get a good conveyancing lawyer to help you with the purchase or remortgage you may not have considered how best to avoid potential legal complications and protect your new investment.
Investing in property
With mortgage rates so low, you may be considering remortgaging to invest in a buy-to-let property, fund home improvements or help family members onto the property ladder. If so, it is important to get good legal advice early in the process to avoid unexpected complications. A bit of time spent sorting out legal matters now can help you avoid potential costly mistakes.
For example, if you are purchasing an investment property you should be aware that there are additional legal requirements that need to be adhered to, not just during the purchase stage but also as a landlord.
If you are planning a new extension planning permission may be required and it is essential to ensure the correct procedures are followed. Likewise, if you are considering releasing capital to gift to your children there could be inheritance tax implications.
Protecting your asset
Purchasing property is the biggest investment most of us will make. To get on the property ladder, you may be considering making the purchase with a partner or friend; or you may be lucky enough to have parents or a family member gift you the money. If you are, there are three important documents which you should consider to protect your new investment.
The first is a Declaration of Trust. It will ensure that if the property is sold you receive your fair share of the sale proceeds if you will make unequal contributions to the purchase price, mortgage or upkeep payments.
A Co-habitation Agreement on the other hand, could detail which of you stays in the house should you decide to go your separate ways, how any improvements to the property are agreed upon and paid for, as well as how day-to-day living expenses are to be divided.
Buying a property is an ideal time to make a Will or review your current arrangements. This document will detail who will inherit your share in the house if you died. You might not know that when purchasing with your partner, depending on how you own the house, they might not automatically get your share. Wills are also particularly useful when dealing with complex family arrangements for example; you can give a second spouse the right to occupy the family home, whilst protecting the capital for children of an earlier marriage.
Once you have found your ideal property or are ready to remortgage, I can not only help you through the legal process but can also provide guidance on protecting your assets and avoiding potential costly legal complications. So give me a call on 01305 752385 or email me at firstname.lastname@example.org.