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Avoid the pitfalls of holiday home purchase with new guide
Added: (Wed Apr 11 2007)
Avoid the pitfalls of holiday home purchase with new guide
Insider knowledge and secrets to successfully buying and letting your own holiday property in the UK has been revealed by specialist mortgage service www.holidayletmortgages.co.uk in the form of a free guide.
With more and more people realising the benefits of investing in a holiday property, this, says Sean Horton from Holiday Let Mortgages, could see an increase in a different type of property investment.
“With a buy-to-let property you have pure investment potential,” he says. “However, imagine having the added benefits thrown in to the equation of being able to buy your retirement home now, at today’s prices, and have it funded by someone else as well as having your own holiday home at a very low personal cost and with generous tax advantages too if your property is furnished. A holiday let makes perfect sense and enjoys many financial and other benefits that traditional buy-to-lets don’t”.
He is keen to point out, however, that to the uninformed, buying a holiday let can be a minefield, fraught with difficulties if wrong decisions are made – and this is where the free guide comes in.
Packed full of useful tips, the guide discusses, among other things:
*researching the market place to find a desirable property which will attract bookings 365 days a year. For example, how close to the beach is the property? Is the property child-friendly? Is there a swimming pool nearby? etc. You’d be surprised how much the little things can make a difference
* the tax rules you need to be aware of as well as tax advantages such as getting Capital Gains Tax relief if you decide to sell. (Unlike other forms of property lets which are treated by the tax man as unearned income, with furnished holiday lets they are treated as a business, which can mean lots of attractive benefits)
* choosing the right location (eg. checking out the length of the holiday season in a particular area. If everything shuts down for six months a year, undoubtedly you’ll struggle to get lettings for that six months)
* how you can offset income loss against your other income
increasing your rental income over other similar properties in that area
* the important differences between a buy to let mortgage and a holiday let mortgage
* insurances a potential buyer will need
* choosing the right holiday let mortgage
Sean summarises: “This guide provides some invaluable, eye-opening stuff to anyone who is thinking about or already owns a furnished holiday let. Our aim was to create a simple yet concise guide which covers the important aspects of holiday let ownership. We hope that readers of this unique guide will derive sufficient facts to avoid some of the potential pitfalls and make an informed purchase decision”.
The guide - which also gives a comprehensive list of costs an owner can expect – can be downloaded at: http://www.holidayletmortgages.co.uk/holidayletmortgagesbrochure.htm
Ends
Contact: Sean Horton, Director, Holiday Let Mortgages, on: 020 8301 7930, mobile: 07885 984 719, fax: 020 8304 9788
Email: sean.horton@holidayletmortgages.co.uk
Editor’s Notes:
* The buy-to-let mortgage industry last year hit an all-time high with around 330,000 buy-to-let mortgages, worth a total of £38.4 billion, taken out in 2006 (Source, Council of Mortgage Lenders, figures released 14.02.07)
About Holiday Let Mortgages
Holiday Let Mortgages was launched in 2006 to provide specialist advice to clients wishing to invest in a UK furnished holiday let property. We are the UK’s premier holiday let mortgage broker with access to the whole market together with some exclusive mortgage schemes we have designed ourselves.
www.holidayletmortgages.co.uk is a trading style of Enhanced Wealth Ltd who are authorised and regulated by the Financial Services Authority to provide mortgage and insurance services.