The number of people in the UK that own a second home is on the rise. According to reports, more than one in ten adults in the UK have now made that additional investment. The recent boom in the market proved to be a popular time for buyers to expand their holdings. While there are many reasons to buy a second home if you are in the position to do so, it is important to ensure that it is the right move for you.
Why would you buy a second home?
For many people, the appeal of a second home is to experience the best of both worlds. A countryside escape or a place to crash in the city, having another property to retreat to can feel like a holiday. For others, renting the properties to provide an extra stream of income is their main reason. Some might be looking for a smart way of investing their savings and buy a second property to capitalise on the eventual sale. Whatever your reason, it is important that you know how to give you the edge in the purchase.
Our top tips to get ahead of rival buyers!
If you are considering buying a second property, there is much to consider if you want to beat the competition. You must ensure that you are in a strong position to start with. Many buyers will require a mortgage to make their second purchase. In order to prove to the lender that you can manage the monthly repayments, ensure you have a healthy income. You will also need a larger deposit to secure your mortgage for a second home purchase, which can be a minimum of 25 per cent. Having a good credit score will also go a long way towards pricing your reliability with your mortgage lender.
Is there anything else to be aware of when buying a second home?
One of the main differences is the stamp duty land tax due. The majority of first-time buyers do not have to pay stamp duty land tax. However, it is applicable for second home purchases during the buying process. Other taxes, such as capital gains tax and council tax should also be considered. If you are contemplating a ‘buy-to-let’ property, there will be further tax and mortgage considerations.
How can Home Legal Direct help?
Home Legal Direct is an online conveyancing and property survey network. We have a vetted panel of licensed conveyancing firms throughout England and Wales that we refer cases to. You no longer have to rely on a local solicitor, as you never have to visit an online conveyancer in the flesh. All the correspondence is carried out online, via telephone, and through the post, from instruction to completion. Get started with a free online conveyancing quote to find out exactly how much purchasing your second home will cost you!