The Answers You Need

Birchmore Ltd is an established Property Consultancy assisting property investors in accessing a range of buy to let property opportunities, both off plan and completed, ranging from residential to purpose built developments.

Yes, Birchmore Ltd will happily arrange for investors to go to site to visit the team and view the development. Birchmore Ltd’s office is located in Petersfield, Hampshire and Huntingdon, Cambridgeshire and we welcome and enjoy meeting our clients face to face.

Buy-to-Let has been for many the “go to” investment when looking for security and steady ongoing income. Especially if purchasing with a mortgage (Leveraging), traditional Buy-To-Let can offer returns of nearly 10% on the initial capital invested, even before allowing for Capital Appreciation. In areas of high demand, Buy-To-Let will offer a strong yield and aid a longer term investment strategy. Plus, if you are looking to reinvest the yield and withdraw the equitable gain through re-mortgaging (Gearing) in the future, in order to purchase again over time, this strategy can help you grow your property portfolio.

Student property has been a fast-growing investment strategy that a lot of investors have had success with. There will always be demand for student accommodation regardless of the rising university tuition fees, because higher education is important to many people and can be easily funded through student grants and loans. Knight Frank recently estimated that the UK purpose-built student accommodation properties market is worth £46bn. Assured rental periods and capital appreciation makes this sector a very savvy investment.

In England most apartments are only leaseholds with new leases available normally from 125 years onwards. With a leasehold property, you still own the property just not the land it sits on. You effectively rent the land for your property to sit on for the length of the lease for a pre-determined amount each year (Ground Rent). This is very common and most people when looking to invest in apartments will know this is a normal practice. By law, everyone has a right to extend their lease after owning the property for two years, however this is not something that would need to be considered until the lease has around 75 years or less remaining. Most banks and building society’s consider any lease in excess of 90 years as strong as a freehold for lending purposes. Just keep a check on any Ground Rent increases, as if these are excessive, they may make resale more problematic in the future.

Net yields are often higher for Student Accommodation than a traditional Buy-To-Let. Developers are able to offer this as students are prepared to pay higher rents to secure a great location, as well as the additional facilities that Student accommodation includes. Demand also far outstrips supply meaning the properties are generally run at full occupancy with very little down time. A good developer will always honour the assured rent and have a contingency for any unforeseen circumstances.

In the UK all property purchases must be done through solicitors via a conveyancing process. They will check through all sales agreements and make sure the purchase is bona fide from a legal stand point. All solicitors are governed by the Law Society which stipulates that they must only act on their individual client’s behalf. Often developments will have their own recommended lawyers who have already carried out due diligence and checks on the development, however each transaction must be checked on the individual purchaser’s behalf. Although you can use any solicitor you wish, the benefits of using the recommended solicitor is that the contracts have already been checked and enquiries raised, therefore saving considerable time and in many cases, cost.

While it is impossible to give a 100% guarantee on anything, we work tirelessly to ensure we offer only the very best opportunities with a proven track record of success. Property is typically a long-term investment and it is always worth being conscious that prices can fluctuate.

No, all Reservation Fees are non-refundable as costs are borne from the developers as soon as solicitors have been instructed of the reservation. We recommend that you only proceed once all your questions have been answered satisfactorily and you are fully happy with moving forward.

Student property is typically a cash investment. Birchmore Ltd will guide you through the process. The majority of investments we offer are off-plan so payments are made to the developer in stages via the solicitor, in accordance with all UK property law and anti-money laundering checks. Click here to view the Buying Process.

Depending on the specific development purchased exact costs may vary, however the costs that need to be consider fall broadly into the following categories. (For specific costs on your chosen development, please contact your consultant)

• PROPERTY PRICE This is the agreed purchase price for the property and depending on the development, it may be 100% cash or made up with some leveraging (Mortgage). The amount due will be spread between exchange and completion.
• LEGAL COSTS This is for the solicitors to carry out the conveyancing for your purchase. As well as their fees there will be additional costs for disbursements such as Local Authority Searches, Searches against the Developer as well as legal title registration fees with HM Land Registry and Bank Transfer Fees.
• STAMP DUTY This is a tax that is levied on property purchases in the UK. The amount is tiered depending on the price of the investment.
• MORTGAGE FEES Your mortgage broker may charge a fee for their service, in addition to set up and survey fees for the mortgage. These will vary from lender to lender and should be outlined to you before going ahead with a purchase.

All developers strive to complete on time, as delays can result in penalties and most of their profit comes from completion balances. However, delays can sometimes arise for various reasons, often beyond the developers direct control. Most of the time, there is a long stop completion date within the contract to protect the purchasers.

As with all property, location is key. If your property is situated in a desirable city with a high student population and offers the right facilities it will always be in demand. If rental assurance does expire, Birchmore Ltd is on hand to market the property for you. However, in our experience we rarely see student property return to the market which is a true indicator of their performance and reliability. Why would you sell when your investment is thriving?

Birchmore Ltd will not charge you any fees for purchasing a property investment we have promoted. There will be some costs when instructing a solicitor, but generally these are low for off -plan purchases where there is an appointed solicitor dealing with a specific development.