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UK Holiday lets attracting more landlords, says mortgage lender

The specialist holiday let market is becoming increasingly attractive to ex-pat investors - and another mortgage lender has entered the sector as a result.

Suffolk Building Society has launched a new standalone product to bolster its existing expat residential and expat buy to let offering. 

The new product is available up to 80 per cent Loan To Value with a minimum loan of £75,000, a maximum loan of £750,000 and a minimum property value of £100,000 for properties in England and Wales.


Expat first time buyers and non-owner occupiers will be considered on an individual basis and for joint applications, although at least one party must be a UK national and where the second applicant is a non UK national.

This includes one of the applicants having a minimum income of £40,000; being employed by a reputable employer with a verifiable income; and the purchase deposit must be sourced from an account held in the applicant’s name. 

Most countries and currencies are eligible but the deposit must be held either in the UK or the country that the main applicant is residing.

Owners may occupy the mortgaged holiday let property for personal use for up to 60 days per year, and applications will be assessed on an average of low, mid and high season rental yield and this will need to be verified by an independent lettings agent, rather than Airbnb.

“As expat and holiday let specialists, we were naturally keen to respond to the demand, both from intermediaries and direct customers, for what is currently an underserved section of the market” ays a spokeswoman for the building society. 

“We understand that increasing numbers of UK nationals are looking to invest in the UK holiday rental market, as the public rediscovers the beauty of British holidays and the pandemic continues to make travel abroad tricky. 

“With 60 days personal use, this also provides a great base for those expats returning to the UK for longer holidays or to visit family, meaning they have a property of their own to stay in, alongside the rental income they’re earning too.”

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    Is this an effect of the adjacent news on S 21?

    You won't need 3 guesses!

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    My youngest daughter and her boy friend live in Cornwall and have 1 BTL in Plymouth presently rented to a tenant, most investment properties down there are going over to holiday lets, can't blame those landlords can you ?

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    Of course landlords are heading in this direction... They've been forced into it.

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    My son and his wife have a couple of BTLs. Just about ready for the next one but he's seriously thinking about a holiday let. We both live in Bournemouth so I think it's got legs. I will be spending time with them next week to throw ideas around.

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    If i were looking now it would be totally in the Holiday Let market, not a chance would i now go into BTL, it's a dead duck.

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    I finished a one bed flat in a popular Cornich seaside town at the end of July last year which I had originally planned to let on a normal AST. I decided to holiday let it and was booked solid for Aug and Sept within days even at that late date for a weekly rent virtually double what it would make on an AST in a month. It has since rented on a short winter let at a figure I would have expected on a three bed flat.
    I don't have to supply all the Govt prescribed paperwork, don't have to worry about the tenants leaving on time, don't have to pay council tax, don't have to protect their deposit, it gets cleaned every week, any damage gets taken out of their deposit and I get paid in advance.
    What more could I ask for?
    If Cornwall Council, who report 73% less houses available to rent this last year compared with the year before, want to improve the situation they need to put pressure on the Govt to talk to landlords in the PRS and listen to both sides of the story and come up with a situation which works in a fair way for both tenants and landlords. They need to stop protecting those who take advantage ot the current situation and rely on being able to play the rules and stay rent free for many months whilst the landlord is helpless. They are unable to understand the concept that a landlord is running a business, however large or small and has no desire to evict a good tenant who pays the rent and looks after the property except very occaisionally for a very good reason, A landlord has invesed a lot of money in a property and needs to have an element of control over his /her asset as in any business. Stop bashing and using us as cash cows, treat us as the businessmen we are, and we can pay our taxes and sleep,peacefully at night


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