Home insurance provider highlights advantages of legal expenses cover

A financial services company has attempted to draw attention to an optional home insurance add-on that may be of interest to homeowners looking to enter the buy-to-let market.

Based on the number of over-50s obtaining home insurance cover for rental properties in the last 24 months, Saga estimates there will be a 24 per cent spike in elderly demand for renting out second houses over the next year.

Consequently, it has pointed out that many new entrants to the buy-to-let sector may be unaware of how to correctly declare their income to HM Revenue Customs.

It is important that they understand the tax implications, remarked Andrew Goodsell, chief executive of the Saga group.

Saga's legal expenses cover provides tax advice and will also cover the legal costs in the event of a full enquiry into your personal tax affairs.

Homebuyers can opt to have legal expenses protection added to a standard Saga home insurance deal for a second property.

Buy-to-let investors may also be interested to learn that, in a recent survey of landlords from financial services provider Alliance Leicester Mortgages, it was discovered that 56 per cent retained at least part of a tenant's deposit after their residency ended.