We were approached by a residential mortgage broker to assist their client in purchasing a property in West Yorkshire that they could rent out as a ‘party house’ holiday-let.
The client, already had a small BTL portfolio and they were looking to expand this and take advantage of the recent increase in the holiday staycation market.
Whilst they had some cash deposit available, they also offered to refinance one of their existing investment properties to raise the additional funds to achieve the required 25% deposit. Using our extensive knowledge of the BTL market and providers, we secured funding at a rate of 1.75% fixed for 5 years with a free valuation and no legal fees to pay.
As not all buy-to-let providers are lending in this area yet, funding a holiday-let can be a little more complicated for various reasons. In this case due to the property being used as a party house rather than a traditional holiday-let and the clients lack of holiday-let experience meant that we had to draw on our expertise to secure approvals from 2 lenders. The selected deal offering a loan of £307,500 fixed for 5 years at 3.54%
The clients are in the process of finalising the re-decoration and are looking forward to welcoming their first guests in the not too distant future.