Location: Cheddar, Somerset
Finance Category: Commercial Property Finance
As interest rates continue to rise, landlords across the UK are feeling the pressure of having to make mortgage payments that can no longer be covered by rents. In response, some landlords are looking for ways to increase their rental yields, such as corporate lets or short-term lets. This is where Fox Davidson, a mortgage brokerage based in Cheddar, Somerset, comes in.
Fox Davidson specialises in buy to let mortgages for professional landlords, and they were recently contacted by a client who owned several properties in Cheddar. The client was facing a situation where their current buy to let lender would not lend unless the properties were let on assured shorthold tenancy agreements. However, due to the recent increase in interest rates, the client had decided to let the properties on a serviced accommodation basis to take advantage of the higher yields. This left the client in a difficult position, as they were forced to look for alternate funding for their buy to let properties. Fortunately, they were able to turn to Fox Davidson for help. As a specialist buy to let mortgage broker, Fox Davidson was able to advise the clients of their buy to let mortgage options for their Cheddar based properties.
The rise in interest rates has been a significant challenge for landlords across the UK. To combat the rise in rates, some landlords have turned to corporate lets. Corporate lets involve renting a property to a company rather than an individual. The company then provides the property as accommodation for their employees. Corporate lets can be a good option for landlords, as they often come with longer leases and higher rental yields. Another option that some landlords have explored is short-term lets. Short-term lets involve renting a property for a short period, such as a week or a month. Short-term lets can be a good option for landlords, as they often come with higher rental yields than long-term lets. However, there are some risks associated with short-term lets, such as the potential for the property to be vacant for extended periods. For the Cheddar based client, they felt that the option of letting their properties on a serviced accommodation basis was their best option. This involved renting the properties on a short-term basis to tourists and business travellers. The client was able to take advantage of the higher rental yields that come with serviced accommodation, but they needed to find a new lender who would be willing to lend on this basis.
As a specialist buy to let mortgage broker, Fox Davidson has access to a wide range of lenders, including those who are willing to lend on a serviced accommodation basis. Fox Davidson was able to advise the client on their buy to let mortgage options and help them find a lender who was willing to lend on a serviced accommodation basis. The client was delighted with the service they received from Fox Davidson. They were able to secure the funding they needed to continue letting their properties on a short term let basis. This has allowed them to take advantage of the higher rental yields that come with this type of letting, and it has helped them to maintain their income from rent, despite the rise in interest rates. The rise in interest rates has created a challenging environment for landlords across the UK. Many landlords are struggling to make their mortgage payments, and some are turning to alternative ways to increase their rental yields. For the Cheddar based client, letting their properties on a serviced accommodation basis turned out to be a success as Cheddar has a high number of tourists and lends itself well to the short-term letting market.