Serviced accommodation mortgages are available for those looking to rent out a property to guests on short term lets, similar to holiday rentals. They operate similarly to a hotel: the accommodation needs to be cleaned after every use and fresh tea, coffee and milk supplied.
Serviced accommodation mortgages are available for those looking to rent out a property to guests on short term lets, similar to holiday rentals. They operate similarly to a hotel: the accommodation needs to be cleaned after every use and fresh tea, coffee and milk supplied.
Serviced accommodation can generate high revenue if they are frequently booked out or if they have a ‘long-term’ short-term let, e.g. for a contractor who will be working on a local project for 6 months.
Serviced accommodation mortgages are becoming increasingly popular and there are a number of mortgage lenders who will provide mortgages for property that is going to be used as serviced accommodation.
With the rise in popularity of ‘staycations’ and the exponential growth of Airbnb, serviced accommodation is becoming a much bigger rival to hotels. Potential landlords are seeing a revenue-generating opportunity and looking into finding serviced accommodation mortgages for UK property.
Although these mortgages differ to standard buy-to-let mortgages, there are several similarities in terms of eligibility. With the 2016 changes to tax relief for buy-to-let mortgages, serviced accommodation mortgages have seen a surge in popularity.
To maximise your chance of a successful application you should prepare as much as possible. You need to be prepared to share how you plan to advertise your rental, the nightly/weekly fees you will set and what experience you already have in the serviced accommodation industry.
Serviced accommodation mortgage lenders will be looking at whether you can afford the repayments so will be very interested in your personal income and will also look at the property that you are purchasing and its suitability to become serviced accommodation.
The mortgage lender will want to ensure applicants will have enough income to cover any breaks in rentals or maintenance issues that may arise.
Serviced accommodation is becoming increasingly popular, but it is still a niche area for mortgages. Serviced accommodation mortgage lenders tend to be specialised, rather than the mainstream mortgage lenders. Active Mortgages has extensive knowledge about how serviced accommodation works and how to find mortgage deals for our clients. We have established strong relationships with the key serviced accommodation mortgage lenders, so can help you make your dreams of owning a short-let property a reality. Let us make it happen for you. Booking a consultation is easy, simply click to…
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