Purchasing a second home can provide a plethora of benefits, depending on your personal needs and goals. Many individuals acquire a secondary property to escape the hustle and bustle of their city lives, seeking a peaceful oasis to unwind in on weekends.

Alternatively, some find themselves frequently travelling for work and need a local residence to stay in when in a different city. A second home can also serve as a holiday retreat, rented out when not in use to provide an additional income stream.

For those with disposable cash, buying an additional property can offer an excellent investment opportunity, especially if it appreciates in value over time. Others may prefer short-term gains by developing the property and reselling it at a higher price. It is essential to determine why you want a second home before investing in it, as this will impact the type of property you choose.

Additional property uses

Even if the purpose of the second home was not initially for renting out, some people opt to let it out to ensure it's not sitting empty, generating additional income streams in the process. Finding responsible tenants can also help maintain the property, as they will be responsible for its upkeep. If you choose to rent out your secondary property, you will need to switch to a buy-to-let mortgage to be compliant with regulations.

Another option is to let out your primary property and move into the second home yourself. This entails switching the first property to a buy-to-let mortgage, allowing it to generate rental income.

If you are purchasing a property with a relative, it is recognised as a secondary residence, and you will have to pay stamp duty surcharges accordingly, if you currently own a property already. If the purchase is for a mixed-use property, which includes both residential and business purposes, you will qualify for lower stamp duty rates. However, other applicable taxes and higher business rates will still apply.

If you are looking for a mortgage for your second property purchase contact us today at 0151 662 0188 or email [email protected]