Find Property UK

Video – 10 Steps in the property buying process

This video covers ALL of the practical steps in buying and selecting an property from us and the after-sales process too. Follow the steps here if you wish to purchase a property from us. The content in this video is similar to section 4 of the Main Property Video.

Full 2-bed houses from £69,999

These properties are full landed houses at great prices from £69,999 to £115,999. The same property we sell here for £69,000 will be over £350,000 near London. Prices in the North West and North East are still low but now have started to grow rapidly as demand has increased. If you are buying for investment, then lower cost properties deliver higher % rental yields and are now also growing better in % values. These are also easier to rent out and resell, are more tax efficient, lower risk, and provide more long term flexibility as you can buy multiple properties for the same budget and then re-sell some in the future whilst keeping others.

Low fixed total purchase costs (fees) £999

The purchase costs are fixed at £999. and include admin costs, local searches, 12 month’s insurance and fees payable to land registry. If you already own another property you will need to pay 3% stamp duty to the government. If you are not resident in the UK (not been in UK for more than 182 days in the preceding year immediately prior to completion), then there is an extra 2% Non UK Resident Stamp Duty to pay, even on the first property. This can be reclaimed if you subsequently become UK resident in the 2 years following completion.

Pre-acquired and renovated at our cost

All of our properties are acquired by our group companies first and renovated to a set standard. If you rent the property back to us after purchase, we are liable for the ongoing repairs, maintenance and have to pay you agreed rent. By acquiring properties ourselves we ensure that they do not have any structural issues, are in the right neighbourhoods where rental demand is strong, and that we renovate them well upfront (as this reduces our ongoing maintenance costs).

Fully let out to good tenants

When we acquire properties, we normally rent them out to our tenants. So if you wish to use the property yourself, you can not do so immediately but only after the agreed notice period. If you rent the property to us, we would continue subletting to our tenants. Our aim is to always keep the properties rented out and to ensure we have good tenants that keep our costs low and pay rent on time. We are liable for any damage or issues caused by our tenants – so it is in our interest to acquire and keep good tenants.

Contractual Guarantees on the house

We give a contractual guarantee that after renovation, the property will be in a good rentable condition and free from any significant issues. If you rent the property to us after purchase, we undertake to keep your property in a good rentable condition and do all required repairs as they become necessary and do these at our costs. There are no management fees or property maintenance, or any other costs as you are renting the property directly to us and there are no management agents. This effectively enables you to be a passive investor, yet retain full management control over your property.

Outright ownership – No service charges

All of our properties we sell are category 1 – 999 years – full ownership or pure freehold. We treat 999 years as like freehold even though these are nominal leasehold with £1 per year or no ground rent.  We do not sell the  standard leasehold properties or apartments – 99 years/ 125 year leases which may come with service charges.  All of the properties in the North East are pure freehold. These account for 90% of the properties sold. All the properties in East Lancashire are 999 years ownership. These account for about 10% of all properties sold.

Good friendly upcoming neighbourhoods

All of the properties we own, rent, and acquire are located in 28 areas in the North. Majority are in the North East, located in towns north of Leeds –  such as Middlesbrough, Stockton, Darlington, Hartlepool, Teesside, Durham County (TS, DL and DH post codes). We also have Type H2L, H3L, H4L and H5L houses in the North West, mainly in the Lancashire towns north of Manchester, and prices on these are £10,000 higher than the prices shown. (rents on these are also correspondingly higher).

Investment buy-to-let mortgages (for UK Residents Only)

UK Residents who meet the criteria are able to buy first and then re-mortgage the property 6 months later to release up to 75% of the value. We do not offer mortgages and our advice is that at present mortgages do not represent good value as interest rates are high.

Secure, easy, 2 stage selection process

The buying process is very different from buying a property in the open market and is a TWO stage process as demand is in excess of supply. Reservation is made by signing the reservation agreement and lodging £3,000 payment into the client account. Reservation gives you certainty of purchase, a fixed timeline and priority access to the selection list which will be around 20 houses for each client. It also fixes the price for the entire range to the prices that were prevalent at time of reservation and secures any special offers. All of our properties in the list are priced correctly according to their value and investment return and meet the minimum specification of each type. Clients have the ultimate final choice on which specific property they wish to select from the list. Due to our pipeline system, this Selection process happens about 5 to 6 weeks after reservation due to the high demand and priority is given by reservation date order. Please watch section 2 of the video for a full explanation of the Reserve & Select process and why this is better than buying in the open market.

Facilitated Legal Buying Process

The process provides more certainty, speed and convenience and is underpinned by two guarantees

Property Guarantee

The property will be in a good rentable condition, free of any structural or other significant issues. If rented to Find UK Property, it will be maintained in such a way, as part of our agreement, at no cost to the buyer. Should such issues arise in the future they will be fixed at no cost to the buyer. This guarantee remains in place for as long as the buyer keeps the property rented to Find UK, and should they terminate the agreement at anytime in the future, the property will be handed back to them in a good rentable condition, free of any such problems.

Purchase Process Guarantee

The selected property will be transferred to the buyer with no significant issues with the local searches and titles. The buyer will become the registered owner of the selected property. Should there be any significant issues with Searches and Titles, then Find UK Property will offer to exchange the property for any other of the same type, that is acceptable to the buyer. As our Group of companies buy properties first, before transferring to our clients, the searches and titles are already checked, and confirmed to have no issues prior to transfer. There have never been any such issues in the past; however, the guarantee is provided for additional peace of mind of our clients.

Doubled in value every 10 to 12 years

Historically, on average, property prices have doubled in value every 10 to 12 years for the past 60 years. The only exception to this was the period from, 2008 to 2012 when prices fell and then remained static for another 5 years. Now, on average over past 12 years, they are rising at the previous rates. Whilst there are no guarantees, we expect such houses may double in value over the next 12 years.

Full Day To Day Management Control

You become the legal owner and always retain day to day management control of your property. You can resell, rent out, or use yourself as per your wishes. Even when you rent the property to us, you do this directly as the owner, and there are no management agents. This effectively enables you to be a passive investor, yet retain full management control over your property. This means you can even terminate the rental agreement with Find UK Property at any time on any day (with the required notice – so we can deal with our tenant) if you so wish, and then, rent your property to any other tenant, rent via letting agents, or use the property yourself.

Use Property For Any Purpose – Not Tied To Us

Whilst we offer to rent your property, as your tenant, and will maintain the property in a 100% compliant and good rentable condition at our cost, you are not tied to us, and can rent to any other tenant, rent via letting agents, or use the property yourself – for future own use or as a holiday home.

Using standard Letting Agents

Apart from renting to us, you also have the option of renting to any other tenant yourself or using a standard letting agent (there are hundreds of such letting agents on Rightmove and Zoopla website portals). The problems with using a letting agent are:-

Letting agents do not pay any rent:-

• If tenant does not pay
• If property is vacant

Letting agents charge extra fees for:-

• Management fees
• Property maintenance and repairs
• Property renovation after tenant leaves – new carpets, decorations
• Reletting fees
• Annual compliance costs (Gas certificates etc)
• Tenant eviction and court costs
• Tenant damage

When using letting agents, you are ultimately legally liable

• For the safety of end tenant and the condition of the property because when using normal letting agents, you are the acting Landlord.

Rent To Us For Hassle Free Investment

Most of our customers rent the property to us and we become your tenants and pay an agreed rent and agree to maintain the property in good condition at our own cost. We sublet to our own tenants at a higher price so that we can cover our costs and make a profit. This is the best option for you if you wish to be a 100% passive investor for the long-term, yet retain full control of your property.

Furthermore, compared with using letting agents, when you rent the property to us you get regular net rent directly from us, no matter what, and we are responsible for all above  costs and issues as our sub-tenant has an agreement with us – not with you. This means that you get better net rent directly from us than renting using a letting agent. When you take everything into account, you are financially better and have more peace of mind if you rent to us for the long-term. Many of our clients have done this for over 15 years. The rental details are shown below.

Net Rent System

We operate the Net Rent System.  As part of the agreement we become your tenants and pay you an agreed rent and agree to maintain the property at our cost. You get rent even if property is vacant and even if our tenant does not pay us rent. ALL property costs and repairs are covered by us as we agree to keep your property in a good rentable and fully compliant condition as part of our rental agreement with you. There are many costs related to your property and we pay for ALL of these including re-renovations each time our tenants move and upgrades to EPC whenever these are required.

The underlying baseline Standard Net Rent we pay you is 5% of original property price and this is fixed for first 3 years and then rises each year in line with average rent inflation (1^st January each year). However, in the first 3 years we give you an extra 1% bonus (so you get 6% for the first 3 years) as our maintenance costs are less because properties are freshly renovated – so we can afford to pay you more.

After the 3 years at 6% rate, for a few months, until the end of December that year, it will be at 5% rate before increasing. Each annual increase after the first 3 years will depend on how rents have grown in the market in the previous 12 months. For example, if rents increased by 6% then your rent will increase by 6%.  Overall, considering all costs we have to cover, this Net Rent system provides better net rent than you would get using normal letting agents over the long-term. We have been using it for over 15 years and our clients really like it.

No Management Fees

Unlike letting agents there are NO management fees as you are renting the property directly to us. There are no management agents as you retain full management control. So your get 100% of the Net Rent. Most other agents charge over 15% plus VAT = 18% full management fees. So when you take everything into account, our Net Rent system gives you the best overall net rent.

No Landlord Compliance Costs

As the subtenant is our tenant, we pay for all of the safety checks and certificates and any work needed to make sure the properties are fully compliant with safety standards. Our staff are trained to ensure we meet all legal requirements.

Repairs – At Our Cost

As part of our rental agreement with you, we have to maintain the property in a good rentable condition at our cost. Thus if boiler goes faulty – we will fix it at our expense – not yours. This system provided much better level of service to the end tenants than normal letting agents.

All Sub-Tenant Liabilities – We Take Care Of

You are the owner and rent the property to us. We then rent the property to our sub-tenant and in that agreement we are the landlord. of the property and deal with all aspects of the property.  If we are unlucky to have a bad tenant (sometimes this happens) and they needs to be evicted by court action, we will  do this in the background and you will not need to be involved at all (as they are not your tenants). All such costs will be paid by us.

No Other Costs. No Hidden Costs

All of the costs are shown here very clearly. We can arrange the insurance for you but you will need to pay for the costs of insurance after the first year. The reasno is that insurance has to be seen to be paid by the beneficiary or it could be invalid.  (We have a very good deal for our clients whereby full landlord insurance is around £99 for small 2-bed house up to a maximum of £149 for large 3-bed semi-detached house). There are no hidden costs. As we are your tenant, we pay all the utilities and any council tax if property should be vacant for any reason (normally our tenant pays these).

Passive Investment – With 100% Control

By renting the property directly to us for the long-term, you become a passive investor – yet retain full management control of your property at all times. This means you can even terminate the rental agreement with Find UK Property at any time, on any day (with the required notice – so we can deal with our tenant) if you so wish, and then, rent your property to any other tenant, rent via letting agents, or use the property yourself in the future.

We do not recommend or sell these for many reasons. Whilst there are some projects that offer good value, many do not – due to high management/service costs and short leases (student properties are not freehold). Prices are inflated with a single mini bedroom in a shared flat costing around £60,000 and they cannot be resold to anyone other than an another investor. Thus the market re-sale value may not rise (and can fall). There are many parties involved and typically these are sold by sales agents who do not have control over the property and no subsequent contact with the Buyer. We have had many customers who have contacted us wanting to exit such investments and prepared to do so even at a loss. See further details on why you should avoid buying such student property below.

Take extra care when purchasing a property that is yet to be built or is under construction. The risks with such properties remain high. The project could be cancelled and there can be delays in completion and then in renting the properties out. Prices are often inflated by developers as properties are difficult to compare. For investment, only consider property that is ready and already rented out and where you retain full management control. Many such properties are apartments with the new modern leases (99 to 200 years) which have significant service charges (which can increase at 5 year intervals).  In our view these are not good for long term investment as they do not appreciate well in capital value. Again there are exceptions and some such properties can be suitable, especially for pure own use. However, we would recommend full houses that are already built and rented out, for long-term investment.

The UK is one of the world’s best areas for secure property investment. Prices on UK property in the North are now low and affordable.  Good rental returns of up to 8% gross (and around 6% net) can be achieved on low cost houses. The historical growth record is good in that on average, house prices in the UK have doubled in value every 10 to 12 years in the past 60 years. Find UK Property provides a complete service to enable buyers and investors from all over the UK and overseas to easily acquire such properties. Our view is that lower cost houses of £70,000 to £120,000 in the North West and the North East provide the best value for investment and will produce the best capital and rental growth over the next 15 years. Property in London is now too expensive and gives poor rental yields of around 3% and is not good value for investment.

The UK is an “open country” for property investment. Any National of any country can buy property in the UK. Buying any property in the UK does NOT give any automatic rights to residency, long term visa or citizenship. All of our overseas clients buy such properties for future own use, holiday use or long term secure investment and to give themselves options for the future. Many rent them out to Find UK Property and they can choose to keep the rental income in the UK and use this for their holiday accommodation, children’s university fees or other needs. This gives them much more flexibility and works out to be more cost effective. Thus the investment property can be in a different location and size to their holiday accommodation to deliver the maximum yield and long term growth potential.

Buying a property does increase your links with the UK and allows you to have income in the UK and be registered with HMRC tax office (although you may not pay any tax if your income is below £12,570 per person per year). It gives you options for the future and such a purchase may still be worth considering if you have long term plans to spend more time in the UK. However, If residency is your main aim – then you should not buy a property – but seek appropriate visa or immigration advice. The home office website has good information.

We specialise in helping serious overseas buyers, expats and property investors find the most suitable UK property for their needs, at the lowest price. Prices in the South and London are now very high and the best value and highest rental yields are offered on lower cost properties in the North. Thus for investment properties we specialize in 28 areas in the North. Majority are in the North East located in towns North of Leeds –  such as Middlesbrough, Stockton, Darlington, Hartlepool, Teesside, Durham County (TS, DL and DH post codes). We also have Type H2L, H3L, H4L and H5L houses in the North West, mainly in the Lancashire towns north of Manchester, and prices on these are  £10,000 higher than the prices shown. (rents on these are also correspondingly higher).

After you have acquired your property you have full control over it and have all the options available to you (future own use, holiday use, renting out). Most clients however, want to rent out the property for long-term rental income and capital growth. You can rent out yourself to any tenant, use any letting agent, or directly rent the property to Find UK Property (we become your tenant). This is the best and easiest option. We have clients who have been doing this for over 15 years and getting regular net rent as per their agreements. Even when you rent to us, you retain 100% day to day management control of your property. Practically, this means that you can terminate the rental agreement with Find UK Property at any time on any day (with the required notice) if you so wish, and then rent to any other tenant, rent via letting agents, or use the property yourself in the future. Because we also agree to keep your property in a good rentable condition at our costs, then renting directly to Find UK Property enables you to be a passive investor, whilst retaining full management control.

The London region contains the most prime property in the UK with prices several times higher than other regions of the UK for the same size of property. Most of the properties in London are terraced houses or apartments with relatively few detached properties. Over the past 30 years London has done very well, but the future looks less promising. Rental yields are much lower (because prices are so high) and future long-term growth may be lower than in the North. Post Covid, many people have learnt that they can work from anywhere – and do not need to be in the big city. In most cases property outside of London can offer better value with higher rental yields and most investors are no longer considering London area as it does not represent good value now.

Currently we do not recommend properties in or anywhere near London or the South as the prices there are very high and the % rental yields are too low. The same properties which we sell for £75,000 here in the North are well over £300,000 in the South. In the past London has done very well in capital growth – however this is less likely to be the case going forward and the risks of buying here are now higher. Many clients just RENT near London (if they have to be near London for holidays or for work) but they BUY multiple low cost investment properties away from London as this gives them higher income, and better potential for the future with lower risks. For a budget of £300,000 you can only afford ONE house in the South, whereas you can buy FOUR houses in the North giving twice the gross rent of the single house in the South. The overall capital growth % wise has been the same in the North and South (over the long-term). However future capital growth may be better in the North.

The UK historical growth record is good in that on average, house prices in the UK have doubled in value every 10 to 12 years in the past 60 years. The prices on low cost houses in the North are expected to follow the previous trend whereby they double in value over about 10 to 12 years – but no-one can guarantee future capital growth.

Property prices increased sharply in the Covid and post Covid period from August 2020 to August 2022. This was particularly the case in London and the South. Since then, average prices have fallen significantly due to high mortgage interest rates (which made properties unaffordable for many mortgage buyers). This is especially the case in the South and London where prices are very high and the falls have been the highest there. The effect in the North has been less, as properties are lower cost and affordable without a mortgage. Going forward, from now, what we are seeing is that demand for low-cost houses in the North is rising as investors who were previously considering an expensive investment property in the South with a mortgage, are now switching to buying a low-cost property in the North with cash. Thus prices in the North are likely to grow at better rate than the South.

The market price of existing houses does vary with what is included in the property, if it is renovated or not, and its underlying condition. If you look at online property portals and look at any particular postal area or street for the same type of houses, you will see that for low cost properties, the prices may vary greatly. The reason for this is, the internal state of the house and degree of renovation. If a house has structural issues and is derelict then the price will be much lower. If the house is basically in good condition but needs renovating then you will see an average price; if in good conditions with recent renovation then price will be higher.  These are not brand new houses or new identical apartments and thus are not all at the same price. That is why we renovate all of them to a set standard and then sell at a set price depending on value and rent, with associated property guarantees.

If you looking for a property that is near a university so that this can be used by your children if and when they do come to study in the UK, then our advice is that you should NOT purchase property yet. The problems is that the selected property may not be in the right location, in the right community, convenient for your child – even if it is near the town you think your child will study at. It is better for them to rent University accommodation initially and have the ability to move around to ensure they are in a convenient and safe location for their studies. We have many clients from overseas who wish to do this but practically, they never end up using their own properties for one reason or another.

Instead, you could get a pure investment property that you leave rented out all of the time and use this income to pay for your child’s university accommodation. This will give you and your child more flexibility.

If you are looking for “holiday use” for only 1 or 2 months of the year, then in most instances it will be best for you to buy a property most suited for investment and to leave that rented out all of the time. You can keep the rental income in the UK and then use this income to pay for your holiday accommodation, as and when you visit. This is better, and gives you more flexibility as the investment property can be purchased for the best yields, price and investment returns – and not necessarily in areas you need to live in or visit. UK properties cannot be left vacant for long periods (as they may develop damp) and normally the tenancy agreements are for 12 months. Practically it is very difficult to use your own property for short holidays, as each time you have to give legal notice to tenants, then clean or renovate the property, change the utilities (gas, electric, water, internet etc) to your name. Then suitably furnish the property, as almost all UK properties are normally rented out unfurnished. Trying to do all these things quickly is not easy and will just spoil your holiday. It is better just to rent unless your holiday are very long (over 6 months).

Future Own Use

If you are looking mainly for “own use” in the future either because you may relocate to the UK or for possible retirement, normally we would advise you NOT to buy a property yet. It may be best for you to just rent for a short while, if and when you come to the UK –  until you were happy with the community and location. Then you could buy. Many clients end up buying in the wrong location and sometimes their circumstances change and the property purchased is not suited to their needs.

A first step in planning to come back may be to buy a pure investment property that gives income, grows in value, and is easily affordable without a mortgage. This would give you options for the future. You could then use the rental income from the investment property to pay for any property you rent for your own or family use. This gives you more flexibility and the ability to move around until you are sure where you finally wish to live.

Your own investment property can of course also be used for “own use”.  If this is needed, you will just need to give the required notice – so that we can deal with our tenant fairly and relocate them to another nearby property. After this we can hand your property back to you in a good rentable condition.

Our Clients – Overseas Nationals

Many overseas buyers are looking to the UK for a secure place for medium to long-term investment. They are not looking to immigrate into the UK immediately (although some may consider it in the future), but simply wish to grow their money securely and with the least amount of hassle. They usually have some link with the UK or intend to send their children to study here in the future, or may have relatives in UK. Many may have studied here themselves. They are looking for a company that offers a complete solution; this includes finding investment property, dealing with the purchase process and giving them options for lettings and management, paying the net rent to them, dealing with UK authorities and possibly managing the future re-sale of the property. Our system gives them all of these options whilst they retain 100% management control of their property. Some of them may wish to come to the UK in the future and use their own property or even re-sell their investment properties to buy an ‘own use’ property in locations where they work or want to live..

Our Clients – UK Expats

Many of our clients are actually UK nationals who are working or living overseas. They want to invest for the long term in a safe and secure country (i.e. their own country – the UK). Some may eventually wish to retire in the UK and may sell one or more of their investment properties to get an own use property. Others will simply keep these properties for long term investment and they may pass these on to their children. Having a real asset that they own outright and have 100% management control over, and that grows in value, generating good retirement income makes sense for them; and they feel safe in having such a property in the UK. Many clients start with one property and in later years acquire more to build a small portfolio. We can help them in this process (see customer case studies section).

Our Clients – UK Residents

Many UK residents living in the south or in London are now considering low cost houses for investment and long term pension type income. Prices in London and the South are very high and % rental yields much lower. The same property which we sell for £75,000 here in the North is well over £300,000 in the South. In the past London has done very well in capital growth – however this is less likely to be the case going forward and the risks of buying here are now higher. Our clients from the UK also like the fact that they retain 100% management control of their property but are still able to be passive investors by renting the property to Find UK Property. Most of our UK clients are mainly either busy professionals working in or near London, those that have retired or coming up to retirement, or those looking for their first property and find that the North is the only locations where properties are affordable.

Beware of Student Room Investments

These are single rooms within student flats and sold as leased investment units. The properties are built by builders and developers, marketed and sold by sales companies and managed by different student management companies. The rooms can only be rented out by the management company – you cannot use them or rent them out yourself. They can only be re-sold to another investor who agrees for them to be continued to be used as student-only accommodation.

Student rooms are not really comparable with freehold houses and would be impossible to sell without the guarantees made by the companies advertising them. Unfortunately, such guarantee wording is drafted in a way in which there is a ‘get-out’ for the developers, managing companies and sales agents in case the yields and growth are not achieved. This means that it is in fact the investors that carry the risks. Whilst there are some projects that offer good value, many do not due to high management/ service costs and short leases (student properties are not freehold). Prices are inflated with a single mini bedroom in a shared flat costing around £60,000 and they cannot be sold to anyone other than an investor. Thus, the market re-sale value may not rise (and can fall).

With the student investments, there can be several parties involved – properties are sold by the commission based sales company, they are purchased from the developer or builder, and the student management company who you will be dealing with is completely different. When you purchase a standard house with our help, we are responsible and liable for all aspects of the purchase. After purchase, you retain full day to day management control. We offer a great option where you rent the property back to us and we keep the property in a good rentable condition, pay you net rent for the long-term.  We have clients who have been renting to us for over 15 years and they have never needed to pay for any property or other costs.

Avoid Hotel Rooms, Care Homes, Car Parks & Storage Pod Investments

These fall into a similar category to student pods. The values are inflated, there is no true re-sale market (can only be sold to another investor) and capital growth is not realised. You have no real control over the investment. There are multiple companies and contracts in each transaction and no one company totally accountable to the investor. Whilst returns may be guaranteed for a short period there are hidden charges.

Standard buy-to-let houses are better as you “own” the property fully yourself and after purchase you decide how you wish to use it (investment or future own use).  If you use it an investment, you can decide to rent it out yourself, use any other letting agent to rent out, or rent to Find UK Property. If you rent to Find UK Property, then we pay you an agreed rent depending on your property type (see table at top) and keep the property in a fully compliant and good rentable condition at our cost. We sublet to our own tenants at a higher rent to ensure we cover our costs and make a profit. We have clients who have been doing this for over 15 years and they agree we are a very good long-term tenant – See Testimonials Page.

BBC Video – One of FIVE BBC TV Episodes on our business.

This is the first of FIVE Episodes produced by the BBC. It cover  the family business of Find UK Property and explains how we buy and renovate low cost properties in the North. You can watch all 5 episodes on the Testimonials Page.