The return on your buy-to-let investment is called the rental yield and is dependent on a number of factors - type of property, location, market conditions and condition of the property. Gross yield The gross yield of a buy-to-let property is the annual rent divided by the purchase price, expressed as a percentage., The whole process of acquiring a ‘Buy to Let’ (BTL) property is different to, for example, that used when buying a residential property to live in. The purchase is still part of a conveyancing process – but some of the charges and expectations are different. Purchasing a Buy to Let property is still worth considering if you’re aware that it’s a long-term investment., The highest yielding areas for buy-to-let property in the UK . Let’s say you want to buy a property worth £200,000. You plan to charge £1,000 per month in rent, which works out to £12,000 per year. Divide 12,000 by 200,000, then multiply by 100. That equals a yield of 6%. A good rental yield is generally benchmarked at around 5%., A buy-to-let (BTL) mortgage is a mortgage sold specifically for those who buy property as an investment, rather than getting a mortgage for somewhere they want to live themselves.. Buy-to-let mortgages work differently from standard residential mortgages. So, if you’re choosing to rent out your property, lenders will prefer you to finance your purchase with a buy-to-let mortgage., A buy-to-let mortgage is a type of mortgage designed for those buying residential property as an investment. In other words, property that’s rented out to tenants., Step 5: Buy-to-let is a hands-on investment. You’ll need to keep reviewing your mortgage and conduct necessary maintenance on the property. You should also make sure that your income from buy-to-let is handled in the most tax-efficient way – an accountant can help. Check out our guide to buying to let..