Specialist Buy To Let – Holiday Lets
With the staycation coming back with vengeance over the last few years the holiday let market is a niche landlords are taking to, in order to take advantage of the higher revenues available. Holiday let mortgages are a type of mortgage designed for individuals who want to purchase a property to rent out to holidaymakers
With the staycation coming back with vengeance over the last few years the holiday let market is a niche landlords are taking to, in order to take advantage of the higher revenues available.
Holiday let mortgages are a type of mortgage designed for individuals who want to purchase a property to rent out to holidaymakers for short-term stays, rather than for long-term rentals. In the UK, holiday let mortgages are offered by some high street banks and specialist lenders.
To obtain a holiday let mortgage, lenders will typically assess the borrower’s ability to generate rental income from the property, taking into account factors such as location, demand for holiday accommodation in the area, and potential rental income, specifically lenders will asses the high, medium and low season rental over a shorter year for example 40 weeks to calculate the potential borrowing. The borrower’s credit history and income may also be considered.
Holiday let mortgages sometimes have different requirements compared to buy-to-let mortgages, such as higher deposit requirements and more stringent affordability checks. Lenders may also require the property to be available for rent for a minimum number of weeks per year.
Holiday let mortgages can be a good investment opportunity for those looking to generate rental income from a property in a popular tourist area. However, it’s important to be aware of the potential risks and challenges associated with holiday let investments, such as seasonal fluctuations in demand, competition from other holiday rentals in the area, and the need for ongoing maintenance and management of the property.
As with any investment, it’s essential to do your research and seek professional advice before making any decisions.