Practical preparation · General information, assessed individually
Separate the purchase budget from the rent
Start with the deposit and every cost needed to reach a lettable property. The cash tied up in the purchase is different from the cash you need to keep available after completion.
- List legal, survey, finance and property-tax costs separately.
- Include initial repairs, furnishings and any work required before letting.
- Ring-fence a working reserve instead of treating all savings as deposit.
Work from rent received, not the advertised yield
Gross rental yield does not show the money left after costs. Build a monthly budget using a realistic rent and record assumptions for management, insurance, repairs, service charges and periods without rent.
- Show mortgage payments separately from operating costs.
- Use an accountant’s tax estimate for the intended ownership structure.
- Test a lower rent, a larger repair and higher mortgage costs.
Keep the lender test separate
A lender’s rental assessment is a borrowing test, not a promise of investment profit. Ownership, experience, property type and residence can affect the route. Personal ownership and a company need their own finance and tax comparison.
- Confirm intended tenants, occupancy and property use.
- Check local licensing and landlord duties with the relevant authority.
- Review the cash-flow budget again once the survey and quotations arrive.
Bring to the first conversation
- Property price, expected rent and supporting local evidence
- Deposit source and cash remaining after purchase
- Itemised running costs and proposed management
- Ownership plan and accountant’s tax input
Start with an outline. Send sensitive documents only through the secure route agreed with Jack.
Your questions, answered
Does a positive rental yield mean the property makes money?
No. Gross yield ignores financing, operating costs, tax and some one-off costs. Build the cash-flow budget and test difficult periods as well as your central expectation.
Link to this answerShould I buy through a limited company?
There is no universal answer. Compare lender availability, finance costs, administration and the tax implications with the relevant advisers before choosing the ownership structure.
Link to this answerSources & further reading
Sources checked 12 October 2026. Preparation prompts are editorial checklists; follow the linked original for its scope and updates.
Prepared for Jack Cousins’s website · 12 October 2026. About Jack · How site content is prepared. Lender criteria and individual circumstances determine available options. This guide is not a mortgage offer or personal recommendation.