FAQs

Frequently Asked Questions

With over 50 years of experience, our buyers benefit from homes that are
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Why Invest in Buy-to-Let Property

Why start investing in buy-to-let property?

UK buy-to-let property investment is often considered a sound choice. This is because the UK has a stable property market, giving investors both rental income and capital growth. Rental yield in some areas of the UK, such as Sunderland and Glasgow, is as high as 8%.

One of the main benefits of investing in off-plan UK property is using leverage as a mortgage with multiple gains.

With off-plan property, the return can be even better. Investors typically buy a property below market value, securing this with a small deposit. By the time the property is built, it is often over 20% more than what they exchanged.

This allows investors to build up a portfolio more swiftly. For example, if you bought the off-plan property for £200,000, putting 20% down a deposit, you have invested £40,000 upfront; we expect this to turn into over £80,000 on completion.

What kind of yields can I expect?

In 2024, the average rental yield in the UK is between 5%-8%. Some parts of the UK have higher returns than others.

Anything above 6% is considered an excellent investment property.

In the North of the UK, property investment in Manchester and Liverpool have average yields of around 7.4%, outperforming the south.

Should I invest in UK off-plan property?

Advantages to UK off-plan property for investment include lower prices and fast capital growth before the property development is even completed. They add diversity to your property investment portfolio, too.

Is it better to invest in UK property that has already been built?

There are advantages to choosing a buy-to-let property for investment that’s already constructed. For example, there is less uncertainty about what the final property development will look like.

At The Heaton Group, we are industry leaders; we have completed multiple multi-million-pound developments to excellent standards. Some of these include Bishopgate Gardens and the Urban Green in Manchester.

Financing and Taxes:

Can I get a buy-to-let using a mortgage?

In the UK, you can take out a buy-to-let property mortgage. At the Heaton Group, we make sure all of our new developments are mortgageable so investors can maximize their returns.

What taxes are associated with investing in a buy-to-let property?

You will pay tax on rental income and capital gains tax when you sell an investment property. The basic rate of residential income is 18%, but this varies.

What are the purchase costs for a buy-to-let property?

Purchase costs for a buy-to-let property are initial buying fees, stamp duty land tax, mortgage fees, surveyor fees, and insurance fees. Manchester property investments tend to have a lower entry fee, which means less stamp duty pro-rota.

Property Management and Legal Aspects

Are the developments freehold or leasehold?

Most of the buy-to-let properties for sale in the UK are freehold if they are houses, but apartments tend to be leasehold with a minimum lease of 125 years. At the Heaton group, all our leaseholds are for 250 years.

Can I use my own solicitor?

You can use your own UK property solicitor when buying an investment property to let. At the Heaton Group, we have recommended solicitors who are familiar with property development projects to help you with the buying process.

What happens after the rent assurance period?

After rent assurance is finished on your buy-to-let property, an investor can opt for an external letting agent or HG Premier Lettings to continue renting their property. You can contact HG Premier at +44 (0) 1942 254 999 to learn more.

Investor Concerns and Protections

How can I be sure my money is safe?

A qualified surveyor has to give a true valuation of a property for investment before the bank will give a mortgage offer. Make sure you get an accurate valuation by using an accredited RICS surveyor, as we have done at The Heaton Group.

What happens if the construction is delayed?

There is a longstop date that can allow investors to get out of the contract if developers have too many delays. This is rare since property developers have a financial incentive to complete on time.

At the Heaton Group, we pride ourselves on having a win-win relationship with our investors, striving to meet developer deadlines for both beneficial parties. You can view some of our successful case studies here.

I am concerned that my funds will be tied up too long before I receive any income.

For off-plan property investment, the deposit is held until the construction is complete. You will see high capital appreciation when constructed. A newly built buy-to-let property for sale is the better choice if you want income from day one.

I have checked, and the development has only been around for one year.

Every development is put into its own separate legal entry. This prevents any bad investment from causing financial risk to the group.

What happens if the developer goes bankrupt?

There is always a risk that the property developer will go bankrupt, and in this case, you may not recover any of your investment. At the Heaton group, we try to ensure this never happens. We are proud to say we have completed every development we have started.

The Company

Who are the Heaton Group, and what do you offer?

The Heaton Group is a property investment company Manchester-based. We offer Manchester property investments and Northern new homes that create outstanding communities and have award-winning buy-to-let properties for sale.

We value partnerships and work closely with investors to buy property for investment under market value and build their portfolios.

Visas

Can I get a visa if I invest in property in the UK?

There is currently no rule that says if you buy or invest in a property to let in the UK, you will get a visa. For this, consult immigration for professional advice.