Holiday let investments
Holiday lets have become a popular choice for landlord clients in recent years. A rising increase in Brits holidaying at home in the UK has generated the rental demand and increased mortgage options are now available for those looking for a unique investment opportunity.
Sourcing holiday let mortgages is slightly different from regular buy-to-let and there are certain points to check with your clients at the outset:
- Location – most lenders will expect the property to be in a prime holiday destination for example Cornwall, Devon and Brighton.
- Rental coverage – some lenders will need a local Holiday Letting Agent letter to confirm anticipated rent in low, medium and high season. An average of these will then be used in the calculation.
- AirBnB – TBMC works with a number of lenders that offer finance on holiday let advertised and run as a AirBnB. Further location restrictions may apply to these properties and those using elements of ‘serviced accomodation’, which is common amongst AirBnBs, should also be checked with the potential lender.
- Parks and covenants – some holiday let properties have restrictions on how they can be used and let too which may affect the number of lenders to choose from.
This is an area of buy-to-let finance that seems to be gaining interest, with several specialist lenders recently extending their propositions to include options for holiday lets.
Property Hawk Mortgages is a specialist in the buy-to-let mortgage market. We have a wealth of knowledge and are dedicated to helping UK landlords find the best financial products and services available to them.
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