Buy to Let in Scotland
Buy to Let in Scotland: What Landlords Need to Know
Thinking of buying a rental property in Scotland? Between ADS, landlord registration, tenancy rules and lender rental checks, there is plenty to plan for. Here is the guide we wish every first time landlord read.
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The Basics
Scotland Has Its Own Landlord Rules
Most buy to let mortgages are not regulated by the Financial Conduct Authority. Here are the key things to plan for in Scotland.
- ✓ADS: an extra 8% of the price on additional homes of £40,000 or more
- ✓Landlord registration: you must register with the local council
- ✓Tenancies: most new lets are private residential tenancies
- ✓Rental checks: lenders test the rent covers the mortgage by a set margin
How We Help
How to Buy a Rental Property
Five steps before you offer.
Work Out the Numbers
Rent, mortgage, ADS, fees, repairs and letting costs.
Check Your Deposit
Most buy to let lenders want 20% to 25% or more.
Test the Rent
Lenders check the expected rent covers the mortgage at a higher test rate.
Think About Tax
Personal name or limited company? Speak to an accountant.
Get Registered
Register as a landlord and meet the safety and repair standards.
Your Options
Ways to Buy
There is more than one way to become a landlord.
Limited Company
Can suit higher rate taxpayers or growing portfolios. Get tax advice.
Talk It Through →Common Questions
Buy to Let Questions, Answered
The things landlords ask us most.
How much deposit do I need for a buy to let?
Usually at least 20% to 25%, sometimes more depending on the lender and rent.
Do I pay ADS on a buy to let in Scotland?
Yes, usually 8% of the full price on additional homes of £40,000 or more, on top of LBTT.
Do I need to register as a landlord in Scotland?
Yes, you must register with the local council before letting.
How do lenders work out how much I can borrow?
Mostly on the expected rent, tested against the mortgage payment at a set rate.
Can I get a buy to let as a first time buyer?
Some lenders will consider it, but options are limited.
Should I buy in a limited company?
It can suit some landlords. Speak to an accountant about your tax position.
Related guides
- LBTT calculator Scotland
- What happens when your fixed rate ends
- How much can I borrow?
- All mortgage questions answered
Written by Tony Flynn, mortgage broker at Tony Flynn Mortgages, helping homebuyers across Lanarkshire and Scotland. This page is general information, not personal advice. Speak to Tony about your own circumstances.
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