Buying and selling
Buy-to-let purchase
Buying a home to let out, with the checks a buy-to-let lender expects and the higher rates of property tax for additional homes.
Every cost on its own line: the law firm's legal fee, VAT, the searches and other third-party costs, and any property tax. Your quote opens as soon as you send the form.
Tell your conveyancer about every residential property you already own, in the UK and abroad, so the property tax is worked out on the right basis.
Buying a property to rent out is an investment as well as a purchase, and the legal work reflects that. Buy-to-let lenders have their own requirements, the property tax is usually higher, and if tenants already live there you take on their tenancy along with the building.
This service is for individuals buying a home to let, with or without a mortgage, whether it is your first rental or an addition to a portfolio. Buying through a limited company changes the lender, tax and paperwork, so mention it when you ask for your quote. Our guide to buying through a company explains the basics.
Your instant, itemised quote includes the admin fees a buy-to-let purchase commonly needs and an estimate of the tax at the higher rates for additional homes. If you go ahead, Keyfolio introduces you to a regulated law firm that is on your lender's panel.
What is involved
The steps match any purchase, with extra attention on the letting:
- Checks and funds: identity and source of funds checks, including where your deposit comes from if you are using equity from another property.
- Title and lease review: making sure nothing stops you letting, such as a covenant limiting use to a private home for the owner, or a lease that needs the landlord's consent to sublet.
- Searches: the usual searches, with a close look at anything that affects letting, such as a council licensing scheme for rented homes.
- Existing tenants: if the property is sold with tenants in place, your conveyancer asks for the tenancy agreement, rent details, deposit protection certificate and safety records, and arranges for the deposit to pass to you.
- Lender conditions: buy-to-let mortgage offers often set conditions about the type of tenancy, the tenant and the rent, and your conveyancer must confirm they are met.
- Exchange and completion: as for any purchase, with the rent shared between you and the seller for the month of completion if tenants are in place.
- After completion: submitting the tax return, usually at the higher rates for additional homes, and registering your ownership.
What the legal fee covers
- Identity and source of funds checks, including equity raised from other properties
- Reviewing the title, or the lease for a flat, for restrictions on letting
- Ordering and reviewing the property searches
- Checking any existing tenancy, rent and deposit paperwork
- Confirming your buy-to-let lender's conditions are met
- Exchanging contracts and completing the purchase
- Filing the property tax return at the rate that applies
- Registering your ownership at HM Land Registry
Costs you may see on top
- Searches and HM Land Registry fees
- A fee for acting for your buy-to-let lender
- A company admin fee if you buy through a limited company
- A leasehold admin fee and the landlord's or managing agent's fees if the property is a flat
- Stamp Duty Land Tax at the higher rates for additional homes, or the Welsh equivalent
- Identity checks for each buyer and the bank charge for sending completion money
- Licence fees charged by the council where a licensing scheme covers rented homes
What to have ready
- Photo identification and proof of address for each buyer
- Your buy-to-let mortgage offer and any special conditions in it
- Evidence of your deposit, such as savings statements or details of a remortgage on another property
- A list of the other properties you own, in the UK and abroad, for the property tax calculation
- Company documents, if you are buying through a limited company
- Your letting agent's details, if you have one
How long it takes
A buy-to-let purchase commonly takes 10 to 16 weeks for a freehold house or 12 to 20 weeks for a leasehold flat, measured from instruction to completion. Buying with tenants in place can add time while tenancy documents are gathered and checked. Lender conditions, a company purchase or money raised against another property also add steps. Having your mortgage offer, deposit evidence and a full list of your other properties ready at the start often saves time.
Things to watch for
- The higher rates usually apply if you will own more than one home. In England and Northern Ireland they add 5 percentage points to each band, so a £200,000 buy-to-let would usually carry £11,500 of Stamp Duty Land Tax rather than £1,500.
- If tenants are in place, check their deposit was protected in a government approved scheme and that the safety records are current. You take on the landlord's responsibilities from completion.
- Leases of flats often restrict letting or require the landlord's consent and a fee. Tell your conveyancer early if you plan short lets or holiday lets, which many leases and mortgages do not allow.
- In England, the Renters' Rights Act 2025 changed private renting from 1 May 2026: section 21 no-fault evictions have ended and most tenancies now run on a rolling, periodic basis. Further changes, such as a landlord database, are being phased in.
- Some councils require landlords to hold a licence for certain rented homes. Check with the council before you exchange, because letting without a required licence can lead to penalties.
Questions people ask
Will I pay the higher rates of stamp duty?
Usually yes, if you will own more than one home at the end of the day you complete, including property abroad. The higher rates are not applied below £40,000. In Wales the higher residential rates of Land Transaction Tax apply. Non-UK residents buying in England or Northern Ireland pay a further 2%. Use the stamp duty calculator for an estimate.
Can I buy with tenants already living there?
Yes. Your conveyancer will ask the seller for the tenancy agreement, details of the rent and any arrears, the deposit protection certificate and the gas and electrical safety records. On completion the tenancy passes to you, the deposit is transferred or protected in your name, and the tenants are told who their new landlord is. Check your lender is happy to lend with a tenant in place, as some insist on an empty property.
Should I buy in my own name or through a company?
It depends on your income, plans and other properties, so speak to an accountant before you commit. Company purchases pay the higher rates of property tax, need a lender that lends to companies and usually require personal guarantees from the directors. Deciding before exchange matters, because moving a property into a company later can trigger Stamp Duty Land Tax and Capital Gains Tax.
What rules apply to me as a landlord?
In England, landlords must keep gas and electrical equipment safely installed and maintained, provide an Energy Performance Certificate, protect the tenant's deposit in a government approved scheme and check that tenants have the right to rent. Different rules apply in Wales and Northern Ireland. Our landlords page has more, and a letting agent or specialist adviser can confirm what applies to your property.
Who does the work
Your matter is handled by a law firm regulated by the Solicitors Regulation Authority, the Council for Licensed Conveyancers or CILEx Regulation, or in Northern Ireland by a solicitor regulated by the Law Society of Northern Ireland. At the moment the law firms on our panel act for property in England and Wales, so for property in Northern Ireland we tell you whether a firm can act for you before we pass your details to anyone. The firm confirms who will work on your file, their experience and its terms before you instruct it. How we choose our firms.
Helpful guides
The other costs of your move
- Stamp duty calculator: stamp duty in England and Northern Ireland, Land Transaction Tax in Wales
- Moving costs calculator: the other costs of the move, from the survey to removals