FAQ’s

I have listed some of the most common questions potential clients have, however you may have some of your own, so please don’t hesitate to call me.

How much of the house do I own?
You are 100% legal owners of the property and I do not have any rights over the house. This means you have complete control and are able to re-mortgage, sell or hold as you wish.

How much money do I need?
You will require money to cover your deposit, legal fees, valuation, refurbishment costs and my fees. The refurbishment costs vary dependent on each house and the work required, however you will be provided with a full projection. . To date the average monies required to purchase a property has been £26,000 this will secure a 2 or 3 bedroom property for you, yielding a positive gross rental yield of 10% – 12%.

How do you charge your fees?
My fees are charged based on the equity in the property following the completion of the refurbishment work. We agree the value of the refurbished property based on the ‘current market’, before the work is commenced, this is then used as the benchmark to confirm the equity within your property following the completion of the work. This means my fees, are only charged based on the true equity delivered. (i.e. property is bought for 25% Below Market Value, but 10% of that equity is required to get the property to a rentable standard, then the true equity in the property is actually 15%)

My Alton Property Partner fees are chargeable under the following terms:
• 50% on Exchange of the Purchase
• 25% on Completion of the Purchase
• 25% on Completion of the Refurbishment

When do I pay the refurbishment fees?
As detailed in the contract the full projected refurbishment fees (including Project Management and Contingency allowance) are due on Completion of the purchase and prior to any refurbishment work being undertaken. I then pay the team as and when they complete the work, providing you with photo updates.

Are there any other costs involved?
With any investment property there will be costs involved with marketing and tenanting your property. These costs are covered in the Letting Agreement.

Do you help find the tenants?
The property is marketed by the Letting Agent. My role is to co-ordinate with the Letting Agent and confirm when the refurbishment will be completed, so they can start marketing the property for you and ensure there is a minimal void. We have been successful in achieving smooth transitions to date.

How long will it take to rent out my property?
The area we concentrate our purchasing is an ex council area, where the community spirit is very strong. This means that invariably people will walk past the property during the refurbishment stage and ask which Letting Agent is marketing the property, as people like to live close to their family.

To date the average time a property is empty following completion of the refurbishment work is approx 1.5 weeks.

What type of tenants would my house attract?
As an ex council area you will find that the vast majority of tenants are being assisted by the Government with LHA payments.

I would be worried that DSS tenants will damage my property and not pay their rent
When renting property you get ‘good and not so good ‘tenants – fact! The upfront measures completed by the Letting Agent to assess your tenants reduces your risk, however when renting property there are no guarantees.

As the houses we purchase, are very much focussed on gaining long term cash-flow LHA tenants offer several distinct advantages. Firstly, they are likely to stay within your property for a long period of time, as physically stepping onto the housing market is likely to be out of their reach, this is unlike a private tenant, whom normally rents as a stepping stone to purchasing their own property.

As they treat your property as ‘their own’ they often take great pride in the property, treating it ‘as their own’. Remember, truly great investment properties are tenanted with long term, reliable tenants and LHA tenants offer this option.

Finally, with LHA tenants if they are more than 2 months late with their rental payment you can apply to the Council to have their money paid directly to the Letting Agent, so you remove the risk of ‘non payment’, you are unable to do this with Private tenants.