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What is a serviced accommodation mortgage?

A serviced accommodation mortgage is a type of buy to let mortgage for holiday let investments, also known as buy to holiday let mortgages.

This kind of loan allows landlords to rent out their properties on a short-term basis, and also gives them the option of living in the property either fully furnished or unfurnished.

With a serviced accommodation mortgage, landlords can use the property as a rental for up to 3 months at a time.

When it comes to mortgages, there are a few different types that you can choose from. One of these is the serviced accommodation mortgage, which can be a great way for people to purchase the property.

Picking the right holiday let mortgage type for you

Finding the right mortgage broker is important when looking to invest in a serviced accommodation mortgage. As experienced holiday let mortgage brokers, our team will be able to advise you on which lenders are likely to offer competitive rates and terms for your circumstances. They can also help to ensure that any legal and taxation issues are dealt with correctly, helping to make the transition to owning a holiday let as stress-free as possible.

So if you’re looking for a mortgage that allows you to invest in an additional property, while still being able to enjoy the benefits of a holiday home, then a serviced accommodation mortgage may be the perfect solution.

Types of holiday let or serviced accommodation mortgages

Serviced accommodation mortgages can be used for a variety of rental purposes. From traditional holiday lets, to short-term corporate bookings and Airbnb rentals, serviced accommodation mortgages provide landlords with the flexibility to rent out their property on their own terms.

How long can I rent out my property with a serviced accommodation mortgage?

When it comes to serviced accommodation mortgages, the duration of your rental period will depend on the specific terms and conditions laid out in your agreement. Typically these types of mortgages are ideal for properties that can be rented on a short-term basis like an Airbnb property or extended stay apartments. With this type of mortgage you’ll have all the flexibility you need to make sure everything meets each party’s expectations!

When you finance a property, it is essential to review your mortgage agreement thoroughly as some lenders may permit tenants to occupy the house for 90 days or more. However, other creditors might have stricter parameters on how long renters can stay in the home. As such, being informed of all terms and conditions of your loan will help you abide by any limitations regarding rental periods or additional requirements set forth in the contract.

Benefits of serviced accommodations

A serviced accommodation mortgage has the potential for you to reduce your tax burden, yet it is wise to seek out expert advice from an accountant regarding what you can and cannot claim against your income tax return. However, here are some of the items that could be deducted from your taxable earnings:

  • Water rates, council tax, gas and electricity
  • Landlord insurance
  • Costs of services, including the wages of gardeners and cleaners (as part of the rental agreement)
  • Letting agents’ fees
  • Legal fees for lets of a year or less, or for renewing a lease of less than 50 years
  • Accountant’s fees
  • Rents, ground rents and service charges
  • Direct costs such as phone calls, stationery and advertising for new tenants

If you are looking for an investment opportunity that offers potential tax benefits and the flexibility to rent out your property on a short-term basis, then a serviced accommodation mortgage may be right for you.

Our experienced holiday let mortgage brokers can help guide you through the process of finding the best lender and ensuring all legal and taxation issues are taken care of correctly.

So if this sounds like something that could benefit you, don’t hesitate to get in touch with us today!

We look forward to helping you find success in investing in a serviced accommodation mortgage.

Get in touch with a member of our team to start your help to buy mortgage enquiry

What can commercial buy to let’s be used for?

Most commonly used by landlords, homeowners and property developers to: