The Benefits of a Holiday Let | Buying Holiday Home | Mortgage for Holiday Home | Holiday Let Mortgage

The Benefits of a Holiday Let

The Benefits of a Holiday Let 1024 576 NGI Residential Mortgages

Dreaming of buying a holiday home by the sea or in the tranquillity of the countryside? You’re not alone. Many of us have pondered the possibility of owning our own little piece of paradise to escape to at the weekend or for special occasions. Indeed, more and more people have turned this dream into a reality and are reaping the benefits both personally and financially.

Despite being a big commitment, owning a holiday home can be a great source of income.

From a tax perspective, as long as your property is available to rent for 210 days per annum and is actually let for 105 of those days*, then HMRC will consider it a trading venture entitling you to discounts on Council Tax and mortgage interest relief.

In addition, depending on the location and time of the year, rental income can be very lucrative. With some properties demanding in excess of £1,000 per week in peak season. Naturally, there will be quieter times of the year, but you can utilise this time to do essential maintenance or perhaps spruce the place up a bit. By being flexible in the low season it is also easy to capitalise on people just wanting a last-minute getaway.

Not forgetting of course that this property could also eventually be your retirement dream. By renting it out over the years. The likelihood is that your mortgage will be paid off allowing you to move in and enjoy your retirement with no mortgage to worry about.

A mortgage is a loan secured against your property. Your property may be repossessed if you do not keep up repayments on your mortgage.

*statistic from Gov.uk website (https://www.gov.uk/government/publications/furnished-holiday-lettings-hs253-self-assessment-helpsheet/hs253-furnished-holiday-lettings-2019)