Wattsford Commercial Finance


Call:     01609 531740 / 07939 746488
Email:  enquiries@wattsfordfinance.co.uk

National Association of Commercial Finance Brokers

Thinking of running a holiday let or serviced accommodation?

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Holiday Let Mortgages

Running a holiday let or serviced accommodation is treated by HM Revenue and Customs in the same way as a trading business and so there are different tax considerations to a buy to let investment. It is important you seek professional tax advice for an investment.

For a property to qualify as a holiday let or serviced accommodation, and to stop people from trying to get around the system by renting it like a buy to let, the property has to be available for at least 210 days per year, it has to be actually let for at least 105 days and there can’t be any periods of longer term accommodation (31 days at a time) that add up to more than 155 days.

Like Buy to let, holiday lets and serviced accommodation will carry a 3% surcharge on Stamp Duty Land Tax, but returns on successful investments are generally higher than buy to let. There are, of course, additional costs and greater volatility to consider, but the rewards regularly outweigh additional outgoings. There are fewer lenders that lend on holiday lets and serviced accommodation, but we have excellent relations with those that do and can secure you highly competitive rates and terms.

  • Interest only products​
  • Capital and interest repayment products​

A holiday let and serviced accommodation mortgage provider will lend to a set percentage of the purchase price of the property and this is generally at the top end (Loan to Value) of alternate forms of finance – as of late 2011 the highest LTV’s available are 75-80%.

As a long-term product the rates often tend to be very competitive and the borrower is provided with a choice of a fixed or variable rate product. A fixed rate product allows the borrower to plan monthly expenditure; a variable rate product holds the advantage of a potentially decreasing monthly payment.