Holiday Lets
Considering a holiday let for your next investment?
Holiday Lets
With more and more people looking at staycations this year, you may be considering a holiday let for your next investment.
To be classed as a holiday let instead of a standard buy to let, the property must be available for at least 210 days per year and it must be fully furnished.
Specialists in Holiday Lets
Holiday Let Mortgages: A Lucrative Alternative to Buy-to-Lets
Holiday lets, including traditional self-catering cottages and short-term AirBnB rentals, have become a popular and profitable alternative to standard buy-to-let properties. The demand for holiday accommodation has been steadily growing, making it an attractive option for landlords. While not all holiday let lenders offer specific AirBnB mortgages, there are still a variety of lenders and products available, and we have access to both.
What are Holiday Let Mortgages?
Holiday let mortgages are designed for properties rented out on a short-term basis, typically for holidaymakers, business travelers, or those in need of temporary accommodation. Unlike traditional buy-to-let properties, which are rented out on a longer-term basis, holiday lets are usually let for a few days or weeks. However, no guest can stay for more than 31 consecutive days.
These properties are often fully furnished and equipped, providing everything guests need during their stay.
Owner Occupancy
Many lenders also allow the owner to use the property for up to 90 days per year (though this can vary by lender). This flexibility makes holiday let mortgages an appealing choice for those who want to generate income from their property while retaining the option to use it themselves.
Are you looking for an investment opportunity in the form of a holiday let?
We can give you the flexibility to rent out your property on a short-term basis, with a serviced accommodation mortgage.
Serviced Accommodation
Serviced accommodation mortgages are gaining popularity, with more mortgage lenders now offering options for properties intended to be used on a ‘short term’ basis, rather than for a longer term tenant.
Although these mortgages differ to standard buy-to-let mortgages, there are several similarities in terms of eligibility. With the 2016 changes to tax relief for buy-to-let mortgages, serviced accommodation mortgages have seen a surge in popularity.
Lenders will consider:
- The income generated from the property – lenders will usually use the high, medium and low rate holiday let income from across the year, rather than typical ‘market value’ rental figure.
- How it is being marketed – some lenders have criteria around the platforms used to market the property, for example if you are choosing Air BnB or a traditional ‘holiday let’ website.
- Demand for serviced accommodation in the local area
If you are looking for an investment opportunity that offers potential tax benefits and the flexibility to rent out your property on a short-term basis, then a serviced accommodation mortgage may be right for you! Call us now…
