LETTINGS NEWS: Investing in student accommodation has become easier
If you have a son or daughter off to university in 2017, a new mortgage product could allow them to become a property owner instead of paying rent for three years or more.
The Loughborough Building Society’s Buy For Uni mortgage is open to any student aged 18 or more, and lends up to 100 per cent of a property’s value up to a maximum £300,000.
As with conventional buy to let mortgage applications, the precise limit depends on income predicted from letting rooms within the property. If that produces insufficient rent to fund the mortgage, the building society will allow parents, step-parents or grandparents to add their name to the purchase – providing, of course, they meet appropriate financial criteria.
The property must be within a 10 mile radius of the university being attended by the student-buyer – so if they were attending Exeter University that would include the city centre, Topsham and even Lympstone. Most properties within that radius are eligible.
Property for students is a popular investment for landlords; even if this mortgage product is not for you, East of Exe can advise on the market for student accommodation in Exeter, where the university and higher education colleges attract thousands of students annually.