Mixed Use and Multi-unit Holiday Lets are incredibly popular in the new ‘staycation’ UK. However, many traditional lenders have not yet adapted to financing this type of holiday business. Many only offer financing along very restrictive terms, while others refuse to lend entirely. If you are facing these kinds of problems, Holiday Let Mortgage UK can help.
Mixed Use Holiday Lets
Mixed Use Holiday Lets are properties where the owner lives full-time, whilst other parts of the property are rented out on a commercial basis. It might be a main home with an attached annex or outbuilding for rent, or a range of other configurations.
Multi-Unit Holiday Lets
Multi-Unit Holiday Lets are a series of 2 or more discrete dwellings or buildings on a single property, which are rented commercially on an individual basis. Many ‘cabin hotels’ and lakefront holiday resorts fall into this category.
Getting a mortgage for either a mixed use or multi-unit holiday property doesn’t have to be challenging. HLM can help you find the best financing options on the market today, and make the application process simple and manageable.
What kind of Mixed Use or Multi-Unit Holiday Let mortgage terms could I get?
That varies quite a bit from lender to lender, and from business to business. Generally speaking, though, we have helped our customers find mortgages on the following terms:
- Mortgages and financing for start-ups and existing Holiday Let businesses
- Financing for partnerships, individuals and limited companies – note that financing for limited companies typically require a personal guarantee of the loan
- Mortgages typically available only for owner-managed properties
- Loan values of £250,000 and up
- Up to 60% LTV for interest-only loans and up to 70% for capital-and-interest
- Loan terms of up to 25 years for capital-and-interest repayment or up to 10 years for interest-only
- Loans are available for leasehold properties, assuming the lease allows business use, and at least 85 years remaining on the lease
- Borrowers typically must be UK residents and either EU or UK nationals
- Properties must typically be located on the UK mainland