The number of people in the UK who own a second home is on the rise.
According to reports, more than one in 10 adults in the UK has now made the additional investment with the recent boom in the market proving to be a popular time for buyers to expand their holdings.
But while there are many reasons to buy a second home if you are in the position to do so, it is important to ensure 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. Whether it’s a countryside escape or a place to crash in the city having another property to which they can retreat can create the feeling of having a holiday.
For others, the main motivation is financial – for these people, renting their second home can provide an extra stream of income.
But second home can also be a smart way of investing their savings as they can capitalise on the eventual sale.
Whatever the reason, it is important you know how to give yourself the edge when it comes to the purchase – particularly in this competitive market.
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%.
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!
Peter Joseph is CEO of Home Legal Direct
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