Q1. Why should I buy a property and not just rent?
Q2. What service does UniCommodation offer?
We find the most desirable property in a suitable and well-researched location for your chosen university. We then refurbish it to the standard you require and assist you with all the documentation relating to its purchase and subsequent letting of the property.
Q3. How far away from the Uni can I buy the property?
Within 10 miles for all universities in England and Wales.
Q4. What sort of property should it be?
Sufficiently large for up to four occupiers (including the student as one of the residents). If houses are any larger, it could create legal issues relating to Houses in Multiple Occupation. It can be either a flat or a house, as long as the expected rental income meets the Society’s lending criteria. A 3 or 4 bedroom property is ideal. The maximum mortgage available is £250,000 or £300,000 inside the M25.
If you require further specific clarification then please contact us for further information.
Q5. When should I buy the property?
The general rule is – the sooner, the better. To allow plenty of time for the purchase and refurbishment of your house, we suggest buying in November/December if possible so after the Christmas break, the student has time to secure friends to share with in September. April/May is the absolute latest you should buy – we’d recommend not leaving it that late if at all possible.
Between the date of purchase and the time (usually end of September) when the property is required for occupation, the mortgage product allows the property to be let to the open market on a 6 months Assured Shorthold Tenancy to support the mortgage payments. This is useful if you do buy early.
Q6. Which solicitors do I use?
Our nominated firm is supported by the Bath Building Society. They will deal with both the mortgage-related and property matters on your behalf.
Q7. What type of letting arrangements must I have with my fellow students?
A Licence, which allows sharers to occupy. Don’t worry - this documentation will be provided on completion.
Q8. Are there any property exclusions?
Ex-local authority flats or blocks of more than four storeys (six storeys if lift served) are excluded from the scheme.
Q9. What happens after I’ve graduated? What do I do with the property?
You can either continue to rent it to students or privately thereby receiving investment income. Uni-Commodation can assist with this if required. Alternatively you can sell it and transfer the mortgage to another property in another location – this may help as you get your first job and still remain on the property ladder.
Q10. What are the Capital Gains Tax implications?
There are certain advantages to owning a property such as this as your main residence. Ask your Independent Financial Advisor to clarify this matter.
Q11. How can I ensure my tenants pay regularly?
We suggest that their parents have a standing order to a joint bank account for regular rental payments, as well as the payment of the mortgage.
Q12. Should I expect capital growth in the future?
Property prices in the UK have traditionally doubled every ten years or so since the second World War. This may be one of the motivations you have for buying as opposed to renting. However you also need to take into consideration that the value of your home could fall in this recessional environment.
Q13. Should I buy in my first or second year?
The advantage of buying in the first year is that you have the property available to show to potential friends you wish to share with; however it may be important to spend the first year in halls to build up links with other new students attending the university and to identify friends that may want to rent with you.
Building your wealth. Securing your future.
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