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  • FIRST POST
    • Ubertotty
    • By Ubertotty 7th Jul 18, 6:14 PM
    • 11Posts
    • 6Thanks
    Ubertotty
    Tied rented house - want to buy (first time) as holiday let and holiday home, pls help!
    • #1
    • 7th Jul 18, 6:14 PM
    Tied rented house - want to buy (first time) as holiday let and holiday home, pls help! 7th Jul 18 at 6:14 PM
    Sorry for the ridiculously long title, it's just so specific that I thought it might be best to outline the situation up front.


    We live in a tied house with my husband's job. We pay a small amount of rent (not peppercorn, but less than half market value). We love our house and don't want to move. We don't want to buy in our area. We would like to buy a house up north, halfway to my mum's and on the coast because we'd get more for our money and could holiday there with my mum. Living in a tied house means that we are always at work otherwise! We'd also like it to be a holiday let the rest of the time so that we are not just paying for an empty property for most of the year, with someone local hired to manage the property.



    Does anyone know if this is even vaguely possible? If you get a mortgage I know you have to ask for permission if you plan to let it (or get a buy to let mortgage) but is that also the case for Air B&B or similar?



    We are first time buyers. We have some savings and my mum has also offered to help in any way she can - either by being on the mortgage in some way (she has had a few mortgages and owns her current house outright) and/or by providing us with a large deposit. I'm not keen for her house to be a stake in this though.


    It's such a minefield I'd appreciate all advice. I just want my seaside house to escape to for holidays basically and can't see how we'll ever get on the property ladder without doing something like this either.
Page 1
    • Bass_9
    • By Bass_9 7th Jul 18, 6:57 PM
    • 107 Posts
    • 113 Thanks
    Bass_9
    • #2
    • 7th Jul 18, 6:57 PM
    • #2
    • 7th Jul 18, 6:57 PM
    I can't provide much advice on this but I know certain holiday let hotspot areas are starting to crack down on this type of thing, as some new build developments on the coast are turning into ghost towns.

    Would you be looking at new builds?
    • Ubertotty
    • By Ubertotty 7th Jul 18, 7:21 PM
    • 11 Posts
    • 6 Thanks
    Ubertotty
    • #3
    • 7th Jul 18, 7:21 PM
    • #3
    • 7th Jul 18, 7:21 PM
    Yes I can understand that. We stayed at the coast at Easter and it was new builds and all of it seemed to be holiday lets!


    I'm not tied to new builds. I live in a lovely listed building at the moment. It would just be whatever came up that was right for us, affordable and in a good location.



    We're looking at the area around Saltburn and also Northumberland (that seems to be more expensive though) as well as possibly Lytham St Annes on the other side but also open to looking anywhere that's on the coast halfwayish from the midlands to Scotland.
    • eddddy
    • By eddddy 7th Jul 18, 7:34 PM
    • 6,604 Posts
    • 6,474 Thanks
    eddddy
    • #4
    • 7th Jul 18, 7:34 PM
    • #4
    • 7th Jul 18, 7:34 PM
    Does anyone know if this is even vaguely possible? If you get a mortgage I know you have to ask for permission if you plan to let it (or get a buy to let mortgage) but is that also the case for Air B&B or similar?
    Originally posted by Ubertotty

    A 'buy to let' mortgage probably won't allow holiday letting - you would need a 'holiday let' mortgage.

    (And a 'normal' residential mortgage would definitely be unsuitable for a number of reasons - including that this won't be your main residence.)

    If the property you buy is currently a residential house, you'd probably need planning consent for change of use to holiday letting (and there's the risk that you buy it and then can't get consent).

    So you might have to restrict your search to properties which already have consent for holiday letting.
    • Bass_9
    • By Bass_9 7th Jul 18, 8:26 PM
    • 107 Posts
    • 113 Thanks
    Bass_9
    • #5
    • 7th Jul 18, 8:26 PM
    • #5
    • 7th Jul 18, 8:26 PM
    Yes I can understand that. We stayed at the coast at Easter and it was new builds and all of it seemed to be holiday lets!


    I'm not tied to new builds. I live in a lovely listed building at the moment. It would just be whatever came up that was right for us, affordable and in a good location.



    We're looking at the area around Saltburn and also Northumberland (that seems to be more expensive though) as well as possibly Lytham St Annes on the other side but also open to looking anywhere that's on the coast halfwayish from the midlands to Scotland.
    Originally posted by Ubertotty
    How funny, Northumberland is exactly the place I was thinking about!
    One of the parish councils were recently taking votes on what to do about this issue, not sure what the outcome was.

    It is a really lovely area though, I'd highly recommend.
    • Ubertotty
    • By Ubertotty 7th Jul 18, 10:04 PM
    • 11 Posts
    • 6 Thanks
    Ubertotty
    • #6
    • 7th Jul 18, 10:04 PM
    • #6
    • 7th Jul 18, 10:04 PM
    Northumberland was where we stayed at Easter and it was all holiday lets. Must be quiet in winter.



    Probably can't afford that area, sadly. Beautiful beaches.



    I guess the question boils down to - can first time buyers get mortgages for holiday lets.
    • Ubertotty
    • By Ubertotty 7th Jul 18, 11:17 PM
    • 11 Posts
    • 6 Thanks
    Ubertotty
    • #7
    • 7th Jul 18, 11:17 PM
    • #7
    • 7th Jul 18, 11:17 PM
    I'm also wondering if it might end up cheaper to get a residential mortgage and not let it out at all just go there ourselves as much as possible.
    • franklee
    • By franklee 8th Jul 18, 1:16 AM
    • 3,710 Posts
    • 4,000 Thanks
    franklee
    • #8
    • 8th Jul 18, 1:16 AM
    • #8
    • 8th Jul 18, 1:16 AM
    A quick google found this:
    https://www.which.co.uk/news/2017/07/could-listing-on-airbnb-put-you-in-trouble-with-your-mortgage-lender/

    An alternative if to have the new house as your main home and get a lodger. If the lodger was mainly Mon-Fri and you were mainly home at weekends it would be quite convenient.
    • Ubertotty
    • By Ubertotty 8th Jul 18, 1:37 AM
    • 11 Posts
    • 6 Thanks
    Ubertotty
    • #9
    • 8th Jul 18, 1:37 AM
    • #9
    • 8th Jul 18, 1:37 AM
    Thanks for the article, that's really interesting. It looks like some lenders are more open to things like this than others. Should I go and see a broker?


    I'm not sure the lodger thing would work as we wouldn't live in the house, our current tied house will be our main home for the forseeable future. So the lodger would actually be a tenant I suppose.
    • Tom99
    • By Tom99 8th Jul 18, 3:42 AM
    • 2,384 Posts
    • 1,609 Thanks
    Tom99
    If you go for the holiday let option don't forget to factor in all of the additional costs.
    For example just the cleaning and laundry could easily be 100 for each tenant change if you don't do it yourself and that alone can make a big dent in non peak letting weeks.
    Plus about 20%-25% of the rent if you employ an agent to advertise the property.
    • Ubertotty
    • By Ubertotty 9th Jul 18, 12:39 AM
    • 11 Posts
    • 6 Thanks
    Ubertotty
    Thank you Davesnave.



    I don't feel in the least guilty about the vague possibility of finally being able to afford our first and only house IF we buy one 3 - 4 hours north from where we live and only spend small amounts of our time there AND are able to let it out some of the time to help (AND get help from my mother). I'm far from being some kind of holiday let tycoon pushing up prices.



    Thanks for the advice about costs - it's definitely something that would need to be considered carefully. I guess even with fees it would be better than nothing. Ideally we need a mortgage we can afford even if the property is empty that month.



    From searching it looks like some residential mortgages will give you 'permission to let' for this kind of circumstances (sometimes restricted to 90 days or similar). I'd love to hear if anyone has any experience of letting out their home.
    • Pixie5740
    • By Pixie5740 9th Jul 18, 6:34 AM
    • 12,419 Posts
    • 17,639 Thanks
    Pixie5740
    Yes it is possible to obtain consent to let with a residential mortgage but not from the get-go unless it's a special residential mortgage for members of the armed forces.

    Speak to a mortgage broker because I highly doubt you will get a residential mortgage for somewhere that will not be your main residence nor is not within a commutable distance from your place of work so you're unlikely to be able to pretend it will be your main residence either.

    Someone suggested earlier that you could get a lodger well I don't think that wiukd fly either because this would not be your main home so there's every chance you'd create an AST.

    It could well be that you require commercial lending because you want to operate a holiday let. Again this is something a broker could assist you with.

    Are you aware of the legislation you will have to comply with to operate a holiday let?
    Last edited by Pixie5740; 10-07-2018 at 7:24 AM. Reason: typo
    • Ubertotty
    • By Ubertotty 9th Jul 18, 10:17 PM
    • 11 Posts
    • 6 Thanks
    Ubertotty
    So you can only get a residential mortgage if you intend to live in the property full time? (Genuine question)


    I'll definitely seek the advice of a broker - thank you. Yes thankfully the legislation is something I'm fairly up to speed on but of course I know there's a lot of ducks to get in a row before you can let.
    • Ubertotty
    • By Ubertotty 9th Jul 18, 10:21 PM
    • 11 Posts
    • 6 Thanks
    Ubertotty
    My post above doesn't make much sense now - it was in response to a judgmental post regarding anyone who considers owning a holiday let property, which has now been deleted.
    • Davesnave
    • By Davesnave 10th Jul 18, 6:54 AM
    • 25,538 Posts
    • 93,510 Thanks
    Davesnave
    My post above doesn't make much sense now - it was in response to a judgmental post regarding anyone who considers owning a holiday let property, which has now been deleted.
    Originally posted by Ubertotty

    Looks like there's been some moderation going on.Quite a surprise!
    If you are finding huge gaps between your paragraphs, MSE know about the problem. However, they aren't necessarily doing anything about it. More changes on the way?
    https://forums.moneysavingexpert.com/showthread.php?t=5844460
    • Pixie5740
    • By Pixie5740 10th Jul 18, 7:25 AM
    • 12,419 Posts
    • 17,639 Thanks
    Pixie5740
    So you can only get a residential mortgage if you intend to live in the property full time? (Genuine question)


    I'll definitely seek the advice of a broker - thank you. Yes thankfully the legislation is something I'm fairly up to speed on but of course I know there's a lot of ducks to get in a row before you can let.
    Originally posted by Ubertotty
    Yes, usually one of the terms of a residential mortgage is that you intend to reside in it.
    • Margot123
    • By Margot123 10th Jul 18, 9:24 AM
    • 947 Posts
    • 962 Thanks
    Margot123
    Yes I can understand that. We stayed at the coast at Easter and it was new builds and all of it seemed to be holiday lets!


    I'm not tied to new builds. I live in a lovely listed building at the moment. It would just be whatever came up that was right for us, affordable and in a good location.



    We're looking at the area around Saltburn and also Northumberland (that seems to be more expensive though) as well as possibly Lytham St Annes on the other side but also open to looking anywhere that's on the coast halfwayish from the midlands to Scotland.
    Originally posted by Ubertotty
    Have you considered somewhere like Seaton Carew or Hartlepool? The prices are much more reasonable.
    Saltburn is now considered 'up and coming' and EAs have inflated prices dramatically. As for Northumberland..........Vera has a lot to answer for.
    • Ubertotty
    • By Ubertotty 13th Jul 18, 8:04 PM
    • 11 Posts
    • 6 Thanks
    Ubertotty
    Thanks for the tip - I'll have a look at those places as well.
    • marliepanda
    • By marliepanda 13th Jul 18, 8:13 PM
    • 6,085 Posts
    • 12,931 Thanks
    marliepanda
    Have you considered somewhere like Seaton Carew or Hartlepool? The prices are much more reasonable.
    Saltburn is now considered 'up and coming' and EAs have inflated prices dramatically. As for Northumberland..........Vera has a lot to answer for.
    Originally posted by Margot123
    Hartlepool and Seaton Carew? As a holiday let?!

    Wow
    • MysteryMe
    • By MysteryMe 13th Jul 18, 10:11 PM
    • 1,870 Posts
    • 2,268 Thanks
    MysteryMe
    Hartlepool has a nice marina. I enjoyed my visit there.
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