Below is an update from West One, the Bridging, BTL, Commercial, and Seconds Mortgage lender, that you can access via our specialist mortgage team. Contact our team today for more information.
Announcement
Benefits of investing in holiday-lets
While the pandemic may have accelerated the rise of staycations in the UK, there are a number of other factors at play that suggest the boom in staycations are here to stay from Brexit to a rise in sustainable tours! Here, West One look at some of the potential benefits of investing in a holiday let…
- The cost of furnishing a holiday rental can be deducted from the pre-tax profits.
- Self-catering accommodation may be subject to Business Rate property tax, which would allow the investor to claim small business rate relief, instead of paying council tax.
- If an investor decides to sell their property, they will be able to claim certain Capital Gains Tax reliefs including Entrepreneur’s Relief, Business Asset Rollover Relief and Gift Hold-Over Relief.
- Income generated from a holiday rental is classed as ‘relevant earnings’ which means you can make contributions towards your pension and reduce your income tax bill.
- Married couples can divide the profits from a furnished holiday let however they choose, regardless of the ownership split.
- There is the potential for higher profit margins as the daily and weekly charges for holiday lets are considerably higher than traditional buy-to-lets.
Financing a holiday-let with West One
Our specialist buy-to-let product range is available for existing or first-time landlords wishing to finance holiday lets in their personal names or through a limited company SPV.
Key features of our Holiday Let mortgages:
- We lend to first time landlords with no holiday letting experience.
- Available to individuals, limited companies, and expats.
- No minimum income.
- We can accommodate short term lets and serviced accommodation (Airbnb) which means the property does not have to be in a typical holiday destination.
- Holiday lets are assessed on an AST rental basis.
- The property must be suitable for standard AST rental.
If you have a client looking to purchase or remortgage a holiday buy-to-let, please contact your BDM or the broker support team on 0333 123 4556 or email [email protected].
Generic information is contained within this article and each individual’s tax affairs are different, further advice should be sought from an accountant.