How it works.
The whole process is straightforward and exactly the same every time. It is a proven process that ensures you end up with a sound investment that generates a small monthly income and a significant long-term profit.
There are no hidden costs or nasty surprises – we are totally transparent in all our dealings with you, keeping you informed every step of the way. Trust and integrity are of the utmost importance to us and we go out of our way to keep our clients happy and fully-informed.
You contact us and are put through to one of our trusted mortgage brokers, who will discuss the whole process with you. Once you are sure you would like to proceed and we are sure you are in a position to do so, you will meet Managing Director, Agi Eugenio, who invites all new clients for a detailed discussion.
The Northstar team then search for a property that will suit your budget and has also been requested by one of the London boroughs with which we work. Once that property is identified, we will agree a purchase price. We always conclude these deals as we are able to use our market knowledge and industry contacts to get the very best price for you, almost always lower than you would get yourself.
You will look for the optimum mortgage with one of our mortgage brokers. We will give you all the advice you need but always recommend an interest-only mortgage for an investment of this type. We will then confirm all costs that you will need to pay, either through finances you already have or, more commonly, by using the equity in your own home (or from a previous Northstar buy-to-let investment). The sum you will need will be around £50-£100,000, depending on the value of the property and in which London borough it is bought, which covers the 25% deposit, stamp duty, legal fees, refurbishment costs and Northstar service fee.
Once you have bought your investment property, we immediately go in to renovate it to the right standard. Having renovated more than 700 homes, we have this down to a fine art. We use a range of suppliers who give us excellent discounts, and we use one of our trusted and skilled building colleagues (see 'Team' page) to undertake the work. It is completed in a matter of days.
The local authority moves a tenant into the property and commits to a minimum three year lease with you. Even if the property becomes empty, your monthly payments will not stop for the duration of the lease. Once the lease is up, the authority is likely to simply renew it for another three, or possibly five, years depending on the borough.
You are now the landlord and owner of the property. Thanks to the renovation and the careful selection of properties in the first place, there should be little for you to do in terms of maintenance. However, things may come up, which you can deal with yourself or bring someone in to sort out. We can always provide you with details of excellent tradespeople we know and trust but you are under no obligation to use them. We will also inform you about your responsibilities relating to legal requirements such as the annual servicing of gas appliances etc.
The secure way to invest in property