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Holiday let mortgage FAQ articles

Mortgage for a new holiday let property

Q We are thinking of purchasing a property in the Lakes that will be used predominantly as a Holiday Let. At present the property is owner occupied so has no holiday letting accounts. We have spoken to the Commercial Lending Department at our Bank. They told us that they do lend on holiday let properties, however only those with a trading history and three years accounts. Our proposition, they said would be classed as “start up” and so is outside of their lending criteria! One other point …

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Can we borrow more than £500,000?

Q I have a question, but it’s probably best that we give you some background in terms of our problem. We have found a property in Devon that would make an ideal holiday let property. It’s a single dwelling, just a large house with an acre of land; nothing unusual at all. Located in the South Hams, it’s on the market at offers over £1M. My wife has recently inherited circa £600K. £500K of this can be used towards the purchase of the holiday let. My wife and I thought that, as we are …

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Can I purchase a holiday let complex and live on site?

Q My wife and I are considering a lifestyle change, moving away from our corporate city life and into the country. I am in Business Banking and my wife works for a company that advises on corporate takeovers. We are nowhere near retirement age, so will need a gainful occupation. In our minds there is no point moving to the country and commuting back into to the city, re-joining corporate life. If we sold our house, the net proceeds would be circa £1M. We are thinking of buying an existing …

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Help with a holiday let re-mortgage

Q I have a holiday let remortgage question for you, as quite frankly can’t seem to find the answer myself. Here’s the brief. Last year we inherited some money. My wife and I have always liked the tangibility of property. Our accountant made us aware of the diminishing return on buy to let, due to the Govt using HMRC as the means to cool the market. It’s worked! He suggested an alternative, that being investment in furnished holiday let. He said that providing that we complied with …

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Holiday let remortgage after purchasing

Q I have a question for you and I am really hoping that you can give me a positive answer with a way forward on a holiday let re-mortgage. My enquiries so far have drawn a blank. Just quickly to explain the situation to you. We have just completed on the purchase of a property in Devon, that will be used as a holiday let investment. There was lots of interested in this property, so we said we were cash buyers in order to be more attractive to the vendor. This wasn’t strictly true …

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Can you rescue a part completed development project

Q: I have a question for you, but better give you a little background first. Unfortunately, I am in a bit of time related trouble with a part-completed development project. I own some land and derelict barn outright with no mortgage. Originally it formed part of my adjoining property and I split them away. Currently, I am 10 months into a large barn conversion, which should have taken 11 months to complete. I found a bridging lender myself and set up a 15-month development bridging …

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Should our Limited Company own a holiday let property?

Q We have a couple of questions for you, but think it’s best to provide some background, before we can get to them. My wife and I are looking to purchase a holiday let business, which consists of seven fully converted, self- contained stone Barns, set in 4 acres, plus a bit of woodland, on one freehold title. All seven barns that form the business are restricted to holiday let use only. Our Solicitor has explained the implication and obligations of purchasing a property with a holiday …

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