House for short lets in N/NW London

Annisele

Will you be needing a mortgage to buy the property?

Financing something like this sounds like it would be quite difficult (not necessarily impossible, but difficult). It couldn't be a regulated residential mortgage, because of the planned commercial/BTL/Air bnb use. But it couldn't be a standard BLT mortgage, because of the planned own use (and because of the Air bnb). There may well be available products, but I wouldn't expect the best rates.

Insurance is another issue; I'd suspect the mixed residential and commercial use to be an issue there too. Again, not necessarily an insurmountable issue - but if insurance is available I'd again be surprised if the premiums are low.

SDLT_Geek

michael1234 said:

SDLT_Geek said:

pettelly said:

We live abroad where we rent. For various (family) reasons, we have sold our family home in London. We don't want to buy where we live now as it wouldn't be a good investment. Even though we have no plans to return to the UK imminently, we will do eventually. Plus our teenage kids are all planning to study in the UK (from Sept 2023 onwards) and we also visit quite often. So we were thinking that it would be great to use the money from the sale of the family home to still have a base in the UK, ideally in N/NW London near our family and friends for us to use  for holidays and visits and for the kids to have a home base for weekends and holidays when they are at uni (we live  long haul flight away). However, obviously we wouldn't want it to stand empty most of the time so what we were thinking was a short-lets property and/or airbnb for the time that we won't be using it.

Has anyone done this? Any advice? We'd need to use a management company as we wouldn't be there.

We were thinking of going for zone 3 or 4 but close to a tube/train station and, ideally, a 2-bed house or share of freehold apartment.

Have you allowed for the fact that buying a property in London while living abroad will incur the extra 2% stamp duty land tax for non UK residents?

Presumably if they say to their solicitor that they plan to live there they will not be liable for the 2% ? I don't know that though - I guess with a name like yours you are the expert !

But that is not the plan!  Even if it was, the 2% would be due in the first place if, at the time of completion of the purchase, they had not spent 183 days or more in the UK in the preceding 12 month period.