What To Be Aware Of When Purchasing A Property.

When purchasing a property with ‘SAI Investment Properties Ltd’. There are several points you should be aware of. This break down has been supplied to help prepare for your property investment.

Reservation Fee:
Upon deciding to purchase your property, you will be required to put down a reservation fee, which is more often than not between £1,000 to £2,000, though will depend on each individual development. This reservation fee is non refundable, unless the development fails to complete, in which case it will be refunded back to you in full.

Admin Fee:
Typically £500, though may vary between developments. To be paid on reservation, this fee is non refundable and covers the admin costs involved in setting up a property investment.

SAI Fees:
SAI Investment Properties Ltd’s finders fee is payable on reservation, and is set at 2% of the valuated property price (i.e. price prior to discount).

Deposit:
The deposit, which varies from development to development, will be required 28 days after reservation. This time is also known as ‘exchange on contract’. Failure to pay the deposit may result in the loss of all fees paid so far (SAI Fees, Admin Fee and reservation fee).

Mortgage Broker:
Although at times SAI can recommend a suitable mortgage broker, one way or another we recommend you go through a broker to ensure you receive the best mortgage deal for your requirements. Simply put, a broker will find on your behalf the most appropriate mortgage deals for your circumstances. Please check that any mortgage broker you go to is authorised with the Financial Services Authority (FSA) and be aware that they may charge you a fee for their services.

Legal Advice:
With property you will to consult with a solicitor to ensure you cover everything about your investment legally. At SAI Investment Properties Ltd. we have on hand a panel of solicitors who we will gladly direct you to, and whose services are available for a small fee.

You can read more about solicitors here.

Mortgage:
Although a property investment can be purchased via your own personal finances, typically investment our purchased in conjunction with a mortgage. A broker should be able to discuss with you your best options, but you will find that you will likely be looking at either a specialist ‘buy-to-let mortgage’ or a ‘interest only mortgage.’

You can read more about ‘buy-to-let mortgages’ here.

You can read more about ‘interest only mortgages’ here.