With more people wanting a 'bolt-hole' to escape to the country and coast and ‘staycations’ still proving popular after the global COVID-19 pandemic, it is no surprise that the holiday homeownership in the UK continues to remain high.
According to a report at the start of June 2022, nearly 20,000 new homes had been newly registered across England and Wales as holiday lets – with 83,342 nationally.
Holiday lets can provide a perfect combination of being able to use your holiday home for a much-needed break away from the routine of everyday life, but also as a savvy investment for retirement.
A holiday let mortgage works in a similar way to a buy-to-let mortgage and is based on the rental income you yield by letting out the property to tourists on a short-term basis (normally no longer than 30 days), rather than long-term tenants on an Assured Shorthold Tenancy (AST), which is normally 6-12 months.
Letting the property on a furnished basis, as is normal practice in holiday lets, comes with the added benefit that the mortgage payment can be deducted in full for tax purposes as opposed to buy-to-let properties, where it is capped. This makes holiday lets an interesting alternative for buy-to-let investors.
Our Second Home Stamp Duty Calculator can help with you stamp duty costs if buying a second or holiday home.
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