Unique Financial Packages for Holiday Lets
With the rise of platforms, such as Airbnb, and wider economic constraints placed upon Buy To Let, it’s easy to see why property investors are considering putting finance into a holiday let. As with all property investments, research needs to be carried out on the viability of the proposed business income. The demand for Holiday Let finance and indeed other forms of more specialist residential investment, such as corporate lettings, council let properties, supported living mortgages, care providers and more, has increased greatly over the course of the year, as has the financial support for landlords buying these alternative property investments.
There are additional layers of due diligence we as specialist finance brokers must consider and work through in delivering tailored terms, increased complexities of the assets and income streams mirrored in that of the lending criteria available to support such alternative residential investments. The key for all our clients, introducing partners, IFAs and Brokers is working with a trusted and experienced broker who understands the key issues and criteria in delivering the most suitable terms.
In terms of an investment in property, not only do holiday lets often provide a yield in excess of an average BTL property, and long-term benefit in respect of asset value, there can be some tax advantages, including; Capital gains tax relief, Business rates relief and Interest tax relief.
A Holiday Let investment also provides the investor with the ability to offset other bills against the income from that property. It’s therefore easy to see why investors look to Holiday Let properties as opposed to more traditional longer-term tenancies.
It is important to seek advice from the right professionals when considering any investments, as tax legislation changes, and there are some additional costs involved in holding and managing a holiday let property.
But what happens when it is a more complex proposition such as multiple units and restricted use?
Omega was recently contacted by a client looking to secure finance against several Holiday Let units, all held through a limited company. The principal obstacle that other brokers had faced was the Holiday Units had restricted use, meaning they couldn’t be used for standard residential occupation but could only be utilised as Holiday Let properties. Many lenders are unable to help fund such units; however, we were able to source terms by looking back at previous performance and letting history and offer an interest-only facility for our client.
Holiday Let with restricted use – funding available up to 80% LTV. Interest-only and fixed-rate options are available.
This is just one example of the tailored approach we take with the brokers, IFAs and partners we work with. As established commercial finance brokers and providers of regulated mortgages, we are proud of the relationships we have built with them and the trust we have earned through scenarios such as this where we think outside the box.
Whether it’s finance for Holiday Lets, hotels or B&B mortgages, our experienced team can help.