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The Tipton & Coseley Building Society has initiated a new opportunity for landlords to rent out properties on shorter and non-fixed-term agreements.
Tipton & Coseley Building Society will now accept applications for second homes and holiday lets. This will allow buy to let landlords to rent properties in less conventional ways, for example as AirBnBs.
The building society has introduced additional flexibility on overall income through taking into account holiday let income. This will be done when there is a proven track record to be taken into consideration.
Applicants borrowing up to 75 per cent loan-to-value (LTV) are able to access the new product. It is available on purchase and remortgage, however holiday parks and properties with local ownership restrictions are excluded.
The property can be a property that is let out for short periods or a second home. However, only an individual second home or holiday let is allowed per applicant.
The timing is particularly apt as research from Colliers International said that landlords are increasingly switching from traditional long-term lettings to Airbnb. They are frequently using specialist management companies to manage their bookings.
According to the research, 62 per cent of all properties listed in London are offered by ‘multi-listers’ who have more than one property available via Airbnb. This is the highest ratio among all the cities in which Airbnb operates.
Colliers International said: ‘These hosts are often intermediary companies that manage the listing on behalf of the actual owner.’
Director of sales and lettings at Tipton & Coseley Building Society, Cammy Amaira, said: ‘After listening to brokers and the marketplace, we can now accept applicants who wish to let their property over a short term, including AirBnB. The changing nature of people’s working circumstances for example, means that some tenants require shorter or more flexible rental periods.’
She continued: ‘It therefore makes sense to accommodate landlords who wish to attract shorter term tenants.’