If you’re interested in investing in property but find the conventional routes unsuitable or unappealing, rest assured there are alternatives.

Whether you live overseas, have a poor credit history, or don’t want the burden of taking out a mortgage, you can still capitalise on the property market.

In this article, we identify ways to invest in property or benefit financially from the real estate market without taking out a mortgage.

Can you own a property without being on the mortgage?

Property is renowned for being a profitable and reliable investment.

However, being named on a mortgage may not appeal to some investors. If an investor has a poor credit history, already has significant debt, or lives overseas, taking out a mortgage may not be practical or possible.

If this is the case, there are still several ways they can own property and reap the benefits without being on the mortgage.

How to buy an investment property without a mortgage

There are several different routes you can take to invest in a property in the UK without a mortgage and the right one for you depends on your individual circumstances.

Those options include:

  • Buy outright – Buying the property outright is the most straightforward solution, but few people have the capital to do so
  • Joint venture If you do not want to take out the mortgage, you could partner with another investor. The other investor could be named on the mortgage, but both of you fund the mortgage and own shares in the property.
  • Seller financing – Sometimes, property developers are willing to act as the lender, allowing you to make payments to them based on mutually agreed terms, therefore eliminating the need for a mortgage.
  • Guarantor mortgage – Guarantor mortgages allow investors to acquire a property without being on the mortgage themselves, provided another eligible party is willing to act as their guarantor and agree to pay their mortgage repayments if they cannot.
  • Family investment – In some cases, it may be possible for an individual to take out a mortgage on a property owned by a family member – like a child, parent, or sibling.

Depending on the route you take, you may need to sit down with a solicitor to create a legal agreement called a Trust Deed that explains the relationship between those on the mortgage and anyone else who is a beneficial owner but does not appear on the mortgage.

How can I make money from property without owning any?

If you don’t want the hassle of owning property but would still like to make money from property, there are several routes to consider.

They include:

  • Real estate crowdfunding – This involves pooling funds with other investors to own a stake in a property. Each investor owns a small share and earns a portion of both the rental income and any profits from the property’s sale.
  • Sub-letting – While many landlords prohibit sub-letting in the lease agreement, some may permit it in exchange for a guarantee of consistent rent payments. In this case, you would be responsible for finding and managing tenants.
  • Peer-to-peer investing – In this model, investors lend money to property developers and then earn returns on their investments.

What is the best way to invest in property in UK?

There are numerous ways to invest in property in the UK, including buy-to-let, holiday lets, house flipping, joint ventures, rent-to-own, student lets, and real estate investment trusts.

The best property investments for you depend on your circumstances, budget, financial situation, financial goals, risk tolerance, and level of expertise.

It’s important to align your investment strategy with your personal circumstances and consult financial advisors and property investment experts for tailored advice.

Can I live in an investment-only property?

Whether you can live in your investment property depends on the type of investment and the terms laid out on the mortgage or financing that you have on the property.

For example, if your investment property was purchased with a buy-to-let mortgage, it is usually against the mortgage terms to live in the property. If you’re unsure, consult a legal or financial advisor.

Need help identifying the right property investment UK opportunity for you?

Here at The Mistoria Group, we bring more than 100 years of collective experience to the table, guiding investors through every step of the journey.

From assessing your individual needs to offering bespoke investment solutions, we’re here to turn your property aspirations into reality.

Contact us today to discover how we can help you get started with investing in property in the UK