Demand for Holiday Lets has never been higher in the UK – and as specialists in Holiday Let funding, we’re the people to call when you have a case to discuss.
It’s not surprising that property investors are keen to purchase a Holiday Let to make the most of this boom; the weather is cold, and international travel restrictions are being tightened, and Sykes Holiday Cottages (for example) reported a 129% year-on-year increase in bookings recently.
We can help make your Holiday Let dreams a reality as unlike many lenders as we assess the rental income based on holiday let figures, rather than standard rental, which will maximise leverage for our client.
That’s just what we did for a client recently in the south west of England:
- The property was a 6 bed house on the seafront, valued at £500,000 – ideal for a Holiday Let, but it needed a cosmetic update and refit
- We provided a 75% gross day one bridging loan of £375,000 at 0.67% pm on a rolled-up interest basis, allowing the client up to 9 months to complete the refit, without having to make any payments whilst the works were underway – and to start building up future bookings in the meantime
- Once ready to let, the client switched to a 75% LTV 10 year Buy to Let loan, with the first two years fixed at 4.69%, this was based on the new uplifted value of £600,000, meaning they could capital raise almost all of their funds spent on the refit for their next project
- The expected yield on the investment was 9-10%
We’re specialists in the field, and our service and speed could help ensure you have a property available to holidaymakers ready for the start of the holiday season.
If you’d like to discuss our range of bridging loans and term finance for Holiday Lets, or have a case you’d like to discuss, please just give us a call to see how we can help out.