mortgage

Commercial Mortgages for Airbnb

Buying commercial property to turn into Airbnb residences

Helping you buy the house or holiday
home you really want.

Commercial Mortgages For AirBnB

During recent years, the demand for AirBnB usage and hosts have dramatically risen. It’s becoming a preferred method of accommodation for travellers. There was around £657M made in 2016 by AirBnB hosts and the number is set to rise this coming decade. 

There are also many ways that professional landlords can buy commercial property to turn into AirBnB residences, and furnishing different accommodations and they can be let out to people easily online, for local people and tourists. 

Acquiring a commercial mortgage to for an AirBnB may vary depending on circumstances but there are some implications that may make the process more difficult and that you should be aware of if this is something of interest to you. You must ensure that you have the right amount of insurance covered for you and not to make the mistake of believing Airbnb’s third-party Host Protection Insurance and accidental-damage Host Guarantee cover will cover you for all issues; this may not be the case and so if you can’t comply, you may struggle to continue with your mortgage. 

Mortgage lenders may come up with certain restrictions relating to your mortgage and this depends on the lenders. Commercial property use isn’t always looked down upon favourably, especially with mainstream lenders such as Barclays, HSBC, Nationwide and Yorkshire Building Society.

 

So are there ways around it?

Yes. There are other options for commercial mortgages, as some lenders may offer you the mortgage with a “consent to let” which means that the borrows must provide information relating to the property that shows they had no prior plans to let out the property when it was first bought. It may affect BTL rates but this will mean a new mortgage can be set up for you. 

In addition, holiday let mortgages are perhaps more suitable for AirBnB properties than traditional buy to lets. Designed for properties to be rented out on a short stay basis rather than a longer-term incumbent, the mortgage affordability process factors the potential short stay earnings than longer-term rental. 

 

You can get into contact with us today for more information on how you can file for a commercial mortgage, one of our friendly team members will be happy to assist with all your queries at HHH Mortgages or call us today.

Stamp Duty

Government tax payable when you complete your purchase. The amount payable is based on the purchase price. For the latest rates please see the HMRC website by clicking here.

Solicitors Fees
This amount will vary from case to case but for a single purchase typical legal fees including disbursements may be around £700 – £1000.
Stamp Duty

Government tax payable when you complete your purchase. The amount payable is based on the purchase price. For the latest rates please see the HMRC website by clicking here.

If you’re a first time homebuyer,
get in touch with us today!

We’ll give you a quality service that can make the whole process a lot smoother.

Helping you buy the holiday

home you really want.

Specialising in Mortgages for Holiday Homes

Talk to our experts for everything you need to know about buying your holiday home, holiday let or Air B&B

Your home may be repossessed if you do not keep up
repayments on your mortgage.

There will be a fee for the advice given, the exact amount will depend upon your circumstances but we estimate it we be £250.
Complex and sub-prime cases may attract a higher fee which will be typically no more than £395.

Need help? Speak to one of our experts today.