Firstly don’t even consider putting these on B2L mortgages!

Lenders do check and I’m even aware of a lender actually booking one to catch the client and broker out post completion!

They invariably breach most flat/apartment leases too and you don’t want to cross a freeholder; you could lose your property very quickly.

There are only a couple of lendersthat offer holiday let mortgages and they typically only lend on one property and don’t lend to investors with more than a handful of properties.

Should you wish to just buy the one property don’t look at anything with any covenants, holiday parks, lodges, limited occupation or seasonal use as you won’t get any lending at all.

To a lender serviced accommodation is classed as a trading business NOT an investment and as such while a couple of commercial lenders will consider them it’ll be on a trading loan not an investment loan.

A few things to bear in mind; these loans are usually more expensive, often on a repayment basis and crucially lenders will be looking for trading experience by way of accounts/books.

I have a commercial lender that will consider them if you’ve a good background in lettings generally and the properties are in an area where there’s strong B2L demand as a back up plan. Max LTV is 65% on a repayment basis and rate is approx 6%.

I have a couple of other lenders that will lend on pretty much anything but rates are 8-10%.

With the right background and experience developing your own site of holiday lodges or a block of apartments or houses could be very profitable however and financing that (development and term) would be achievable.
As such if you’ve the experience you would be better off doing this en bloc rather than piecemeal.

Share on FacebookTweet about this on TwitterShare on LinkedIn