Sarah’s Story - short-term let

Sarah, a landlord with 4 buy to let properties in her name, was recently advised by her accountant to manage her tax more efficiently. To do this, she set up a limited company (also called a Special Purpose Vehicle, or SPV) before she purchased her next property. Now she has her eye on a lovely cottage in Devon, with plans to rent it out as a short-term let on Air B&B.

However, Sarah’s never run a holiday let before. While some lenders might turn her away because of that, or because all her income comes from her rental properties, that’s no problem for us at Foundation. Even though Sarah’s new limited company doesn’t own any properties yet, we’d still class her as an experienced portfolio landlord because she already owns four buy to lets in her own name.

We use a background portfolio stress test for landlords like her, which looks at her other properties separately from this new one, making it easier for her to borrow what she needs.

We know that many landlords rely on their property income. So, if like Sarah, your only income is from your rentals, that’s fine by us. We don’t ask for other income if you’re a portfolio landlord.

On top of that, our short-term let products are made for landlords who want to rent out properties through sites like Air B&B, Booking.com and similar platforms. Unlike some lenders, we don’t require you to have previous holiday let experience. As long as you’re an experienced landlord, you’re welcome to apply.

By using one of our short-term let products, Sarah was able to buy her cottage through her new SPV, even though it was her first time running a holiday let and all her income comes from her property portfolio.

If you’ve got a similar case, or a landlord client who might, we’re happy to help. Check out more of our short term let features online or call your Foundation regional area manager today.

Here’s what our short-term let product offers: