If you’re a landlord who is considering expanding your property portfolio, you are not alone. According to a survey from Landbay, 44% said they are looking to invest in property in the next 12 months. * This is an increase of 12% compared to the same survey conducted 12 months prior. In fact, over six out of ten landlords planning to buy said they were doing so to expand their portfolio. *

Confidence is high  

The fact that so many landlords feel confident in expanding their property portfolios is a testament to the rental market's current strength. One of the primary reasons for landlords to be confident is the strong demand for rental properties. This demand is expected to continue growing in the coming years, providing landlords with a steady stream of potential tenants. Plus, as property prices rise, property values appreciate. This gives landlords the opportunity to increase rental income and maximise their return on investment.

The benefits of expanding your portfolio

Increased cash flow

One of the main benefits of expanding your property portfolio is the potential for increased cash flow. By purchasing more buy-to-let properties, you can generate more rental income each month. You can use this income to help offset any mortgage payments and expenses associated with maintaining the properties. As you add more properties to your portfolio, your overall cash flow will continue to rise, providing you with a stable source of income.

Property appreciation  

Property appreciation is another significant benefit of expanding your portfolio because your total return on investment should increase as the value of your property rises over time. As properties become more valuable, landlords build more equity, giving them more options to reinvest in more properties or negotiate better mortgage terms.

Diversifying your investments

Growing your property portfolio also allows you to diversify your investments. By spreading your risk across multiple properties in different locations, you can protect yourself from market fluctuations and unforeseen events that may impact an individual property.

Tax benefits

Owning multiple properties can also provide you with various tax benefits. Rental income is typically taxed at a lower rate than other types of income, and you may be able to deduct expenses related to property maintenance, repairs, and mortgage interest.

Leveraging  

You may be able to use your existing properties to help buy new ones. By using the equity in your current properties as a deposit or collateral for a new loan, you can expand your portfolio without having to worry about raising additional funds upfront.

How your agent can help

Working with a knowledgeable agent can massively help you expand your property portfolio. These professionals possess a detailed understanding of local market trends, rental yields, and landlord regulations, enabling them to offer valuable insights and strategic advice. An agent can also assist you in identifying exciting investment opportunities, negotiating favourable deals, and managing your properties efficiently. With their expert guidance, you can stay informed about industry updates and grow your portfolio with confidence.

Landbay*

Increasing your return on investment is in your interests as a landlord. Property improvements can lead to bigger capital returns, and higher rental revenue. Here are some different improvements that could do this without breaking the bank.

Get to know your target audience  

Targeting your property to young families means improving different parts of your property than that of a student let for example. Family-oriented homes will benefit from improved garden spaces and a bigger kitchen with good seating. Young professionals and students may appreciate smart home technology. It is worth noting that going down the HMO (Home in Multiple Occupancy) route for a student let, requires significant investment, however, could increase your rental revenue significantly.

Give your property real street appeal  

First impressions do last, and if your property sets the right tone from the beginning, then your tenants, future buyers, and tenants’ neighbours will appreciate it. This will maintain a good reputation for you and your property. A weed-free front lawn, painted fence, gate and front facia guarantee your tenants a nice welcome home and can increase tenant satisfaction.

Make the most of outdoor spaces  

If your property has a large or small outdoor space, make the most of it. Nice outdoor spaces are becoming expected and add a lot of value because they are highly sought-after. Comfortable seating will make a big impact and work well with low-maintenance gardens. Leaving a little room for your tenant’s creativity so they can add a homely feeling is also important. Adding French doors or slide walls as part of bigger renovations could help increase rent significantly. Conversely, if space is extremely limited, think outside the box. For example, an eggshell chair, a vertical garden, or a matching two-seater dining set can make a big difference.

Increase the energy efficiency of the property

Anything that reduces the cost of energy for your tenants will most likely increase the level of demand for your property. LED lighting, better insulation, or a more water-efficient shower head are minor improvements which can have a major impact. Better radiators can help to modernise the appearance of rooms and also increase efficiency. If you want to make bigger, greener investments, solar panels, which can sometimes produce enough electricity to sell back to the local grid, as well as supply your property, could be a worthwhile investment.

Improve the kitchen or bathroom  

Deciding which is more important largely depends on the condition of each. But improving the property’s kitchen or bathroom will make a big impression. You may decide to complete an entire refurb on both. If your property’s bathroom and kitchen need attention and there is only enough in the budget to refurbish one from scratch, don’t worry. There are lots of less costly things you can do to make improvements. From regrouting and re-caulking between tiles, to repainting, new flooring, and better lighting. These can give a new lease of life with relative ease and will make the property in question highly desirable.

Create some space  

While most people like a feeling of cosiness, especially during the winter, dinginess is much less in demand. Knocking down walls and opting for an open-plan layout can modernise your property while creating space. More light and more room could equal more rent. It’s important to budget for bigger renovations and have the correct level of paperwork from building control. That said, wall removal is not very high in the cost scale of home improvements. If your property is furnished, create space by choosing furniture and its arrangement that works best with your property’s floor plan. Sourcing furniture on social media or through a charitable organisation could potentially save you thousands.

Selling your home often causes a flurry of questions to surface in your mind. If you are moving and are selling your home with a mortgage, here is a guide to help you understand the process and some answers to the questions you may have.

Can you sell your home with a mortgage?

Yes, you can still move even if your mortgage term is not complete, or your outstanding balance is not settled. In fact, you have a number of options going forward. Unless you are in the fortunate position of no longer requiring a mortgage, your choices will depend on affordability and your mortgage provider's terms. One such option could be to port your mortgage.

Can you move home with the same mortgage?

Some mortgage providers may allow you to move with your existing mortgage. Known as porting your mortgage, this may be a way to defeat higher interest rates, although mortgage providers' terms differ. You will, in any case, have to apply to your current mortgage provider if you want to port your mortgage. You may be able to borrow more, although this could be at a different interest rate than that of your current mortgage deal.

How do you go about selling with a mortgage?

You may be planning on settling your current outstanding mortgage balance and taking out a new mortgage deal on the house you are moving to. If so, your mortgage will be settled after you sell the house you are moving from. This is where your solicitor and mortgage advisor can be worth their fees. Many agents will be able to connect you to either, but it’s entirely your choice as to whether you use their services or choose your own property professionals. Discussing your moving plans with a mortgage advisor initially will help you decide the best route to take.

Is it better to get a new mortgage when you move?

You may find that you may not be able to port your mortgage. On the other hand, if interest rates are lower than your current deal, getting a new mortgage deal could save you some money on your monthly payments. If you are moving to a much greener, more energy-efficient home, you may be eligible for a green mortgage which could offer more competitive rates. Your individual circumstances and property will differ from those of other sellers and buyers, so it is important to give accurate details to your mortgage advisor. Such information as the outstanding balance and the current interest rate of your current mortgage will be required.

A good agent is a good asset to have on your side

Many people sell their homes with mortgages. Mortgage advisors, mortgage providers, and solicitors are well-versed in this process, so there is nothing to stress about. More than likely, you will port your existing mortgage or take out a new deal. A good agent will help you make the most of this process by being there to guide you and get the right value for your home. They are also invaluable when it comes to finding a property that gives you the features and space you want, in your desired location, and that works for you financially.

Are you on the market for a new home? Well, when purchasing a property, you always want to be confident that the asking price matches the value. Easily identify this by commissioning a home survey on your potential property purchase.

What is a home survey?  

A home survey is where a professional property surveyor conducts an expert inspection of a property's condition. The surveyor completes these inspections to identify potential future problems and costs for the prospective buyer, and then delivers the results in a report. A home survey typically occurs after the acceptance of an offer (Scotland's property market differs). Surveyors should be members of one of the two primary accrediting bodies: the Royal Institution of Chartered Surveyors or the Residential Property Surveyors Association. Before contracting for a home survey, you should always check to see if your surveyor is a member of either of these.

How long does a home survey take?  

The amount of time a property survey takes depends on the size and condition of the property, as well as the type of survey you choose. It can take from one hour up to an entire day to complete a survey report. Normally, you will receive your property survey report 5 to 10 days after the survey's completion, allowing you to proceed in the buying process with confidence.

Is a home survey important?  

When purchasing a property, you tend to try and avoid extra expenses, but a home survey is an extremely important part of buying a property. Surveys allow you to understand the entire property, making you aware of future problems and costs, so you can make an informed decision to continue with the purchase or negotiate with the seller and potentially reduce the property price.

Which home survey should you get?
When completing a property survey, there are various types of surveys to choose from. You choose the type of survey depending on the property’s age, condition, and your personal preference.

Level 1 property survey: this is the most basic type of survey, where a traffic light system highlights issues, but the report doesn't delve into detail. This is great for a young, modern property if you want to ensure everything is up to the expected standard. Level 1 surveys start at £500.

Level 2 property survey: this is a middle-level survey that most people choose. This survey will evaluate the property’s condition and highlight problems that could affect its value. This survey will also include advice for repairs and maintenance. Level 2 surveys start at £600. Level 1 and 2 property surveys are non-intrusive, so they will only highlight surface-level issues; they will not move furniture or examine the property's structure.

Level 3 property survey: this survey, of course, is the most thorough analysis of the entire property’s building structure and condition. This survey is commonly used for older, character buildings that are over 50 years old or for properties in poor-kept conditions. The overall report will provide extensive details, including recommendations, estimated costs, and a timeline for any necessary work. Level 3 surveys start at £750.

New-build snagging survey: this type of survey is perfect for new build homes. Usually, you wouldn’t have a home survey completed on a new build, but a snagging survey can help identify small faults and cosmetic issues. You can deliver your snagging survey report to your builder, and they will resolve any issues highlighted as soon as possible. A snagging survey starts at £300.

Is a mortgage valuation a property survey?  

When you apply for a mortgage to purchase a property, the mortgage lender will carry out their own valuation on the property. This can sometimes be misleading and be seen as a ‘property survey’, but the mortgage lender's valuation is nowhere near as detailed, and sometimes they won’t even enter the home.
Always arrange your own survey on a potential property purchase so you can be confident that you aren’t overpaying or purchasing a new home with future problems and costs.

How can you find a surveyor?  

You can easily find trusted surveyors through local estate agents, your mortgage lender, or even recommendations from friends and family. Once you've identified your surveyor, it's crucial to thoroughly review the terms of engagement to understand their responsibilities and the timeline for completing the survey and report. Always make sure you have direct contact with your surveyor, so you can always ask questions if anything remains unclear.