Holiday Lets

Whereas standard BTL mortgages are for tenants on Assured Shorthold Tenancies, holiday lets rely on short-term rentals catering to the leisure and holiday market.
  • One thing to consider when looking at an investment property as a landlord is that the purchase will attract a surcharge on the stamp duty rates of 5%. Stamp duty calculator: www.moneyhelper.org.uk

  • To qualify as a holiday let, HMRC requires that the property is available to rent 210 days per year and must be let out for at least 105 of these. Lenders will consider the property type, location and demand when calculating a likely sustainable income, year round, for determining borrowing levels.

  • Whilst the government has reduced most of the taxation benefits available to Holiday BTLs recently, there are still advantages of holding the property within a Limited Company. These are specialist products but we have several lenders who will lend on this basis.

  • Naturally a draw when owning a holiday property but bear in mind the time you will be able to stay in the property will be limited by the lender (normally 4-6 weeks in total per year).

  • As a growing part of the market, there are more and more lenders launching new products to facilitate the purchase of holiday lets. If you want to start the discussion as to how you might be able to join the holiday let movement yourself, click here.