Holiday lets and mortgage application

andykennedy83

Hi,

so looking for advice in regards to buying a holiday let.

Im hoping to buy a flat via an SPV to run as a holiday let in my touristy town. 

Obviously I have to buy the flat in order to apply to the LA for a licence to run it this way. 

My worry is what happens if the permission isn’t granted but I have a short term let mortgage. Do lenders take into consideration that this may happen with the new legislation! 

Would I then be able to switch to buy to let? Will some lenders allow this if I tell them this upon application? 

Stressed by it all!! 

Any advice appreciated 

ACG

Your setting up a limited company SPV to purchase a holiday let property. 
Thats quite complex, are you only planning on having one holiday let or is this the start of buying multiple? 

I only ask as you might want to weigh up the costs of going limited (accounts are more expensive, the interest rates will likely be more expensive and so on). 

In any event, this is a business. You really should be getting professional advice. Have you spoken to a conveyancer to see if the funds would be released if there is no license? Have you spoken to the council to see what would be required to get a license? Have you spoken to a mortgage broker to see how this all works from the lenders perspective? 

As it is a business (limited or sole trader), you have no protections. If it all hits the fan, you have nobody coming to help you. Get the professional advice. 

(I would answer, but I honestly dont have a clue).