Book a Property Valuation
logo

The Guild Guide to Investing in a Second Home

Posted on: Tuesday, August 9, 2022


Many homeowners dream of property investment for the immaculate sense of achievement and financial opportunities that come with it, which is why more than one in 10 of us in the UK own a second home. If you’re thinking about taking the plunge, here’s a guide to get you started.

 

Decide what your plans are for your second home

There are many reasons why you may be considering buying a second home, some of these include:

• To have a weekend retreat, either in the city or the countryside

• To own a home in your favourite holiday location

• To invest your savings into a home which will grow in value

• To help a family member get on the property ladder

• To become a property developer

 

There are many reasons why you may be considering buying a second home

 

Before you buy

Research the area. What are the other listings like and are they in good condition? Whether you want to secure a return on investment or find the perfect holiday home, you will need to make sure your property is structurally sound, is situated in an area with strong demand and will be suitable for the lifestyle of any possible target demographics. If you need further help, get in touch with your local Guild Member to clarify your plans, ask for advice and see your project through to completion.

 

What your budget will need to cover

Second homes incur a stamp duty surcharge of 3% on top of the normal rate. If you plan to take out a mortgage, you’ll need a deposit of at least 15%, or 25% if you plan on letting the property out. If you later sell a second home for more than you originally paid, you might be hit with a capital gains tax bill. 

 

Using equity to buy a second home

If you own your home outright and are looking to buy another, you can remortgage your home rather than take out a second mortgage. You can check how much equity you have in your home by deducting the remaining amount left on your mortgage from the current value of your home. If you have enough equity, you could increase the mortgage on your main home in order to release money to purchase your second home. 

 

Contact us

Looking for your second home? Contact your local Guild Member today to help guide you through your journey.

 

What Our
Clients Say

"

I would highly recommend Hardings. Their knowledge of the local area is outstanding, and they give honest and reliable advice. They have always been my partner of choice when buying and selling.

Rhiannon Prothero

"

Have used Hardings for many year on both personal and commercial property deals. Have always found them to be transparent, honest, authentic, and a pleasure to work with. Will continue to use in the future.

TB

"

I would highly recommend Hardings Estate Agents. They have excellent knowledge of Windsor and the surrounding areas, and are extremely professional, responsive and courteous. I would not hesitate to using them again the future. I recently dealt with Milica who was instrumental in securing us our new home in Windsor as well as the sale of our existing property. She was a fab negotiator and a real pleasure to work with from beginning to end. Thank you!

Jonathon Beresford

"

Hardings of Windsor managed our purchase with complete professionalism and went over and above in my opinion to manage the transaction and chain, resulting in a really smooth purchase. Milica at Hardings constantly provided timely updates and managed respective solicitors and the chain effectively, always responding quickly to queries. The whole transaction would not have happened without Milicas' focus on making all parties comfortable and satisfying all queries, not only professional but a delightful and welcoming personal approach that was a constant throughout. Thanks Hardings! Thanks Milica!

Stuart Blatch

"

I would recommend using Hardings estate agents when buying or selling your property. Dominic (Scully) was always available, helpful and genuinely interested in my purchase and always calm and compassionate. If I ever move again my first choice will be Hardings.

Cath Powell

"

Dom and the team at Hardings were so helpful and efficient when I purchased my flat - friendly and professional service and kept us up-to-date the whole way through the process. It was my first time buying and so was very nervous but they helped me feel at ease.

Freppell

"

We bought and sold through Hardings and can't recommend their professional service enough. The whole Team are really lovely, we were kept informed throughout the process and never had to chase anything.

Natalie Quint

"

I used Hardings when I bought my property as well as when I sold it and the service has been fantastic both times. I very much recommend Hardings!

Therese Jouini

"

We recently purchased our new home with Hardings Estate Agents. The whole team there were very helpful and flexible with us, arranging viewings quickly on the same day. They were always quick to respond and if ever our point of contact was not there, the service did not change as they work well together as a team. We received a personalised service, which allowed the sale to proceed quickly. Thank you all and we recommend Hardings Estate Agents without hesitation.

Mike B

"

What a pleasure it was to deal with Milica from Hardings. She sourced the perfect property for me and my family (while we were still abroad) and worked endlessly to put the deal together. I would give more than 5 stars if at all possible!

C D

"

Fantastic customer service and made what could have been stressful a total breeze. Dominic and Louisa were brilliant in helping me and my parents buy and sell our houses - reliable, helpful and thoughtful. Thank you!

Eloise Harris

"

Thank you, Dominic and Louisa - having not moved for over 30 years you helped me all the way, step by step. You were always polite, communicative, reassuring and very supportive. Would recommend Hardings wholeheartedly.

Anna Bowen
How Much is Your Property Worth?

How Much is Your Property Worth?

A senior member of our sales team will visit your property to discuss current market trends and how your home; based on size, condition and location should be pitched to achieve the best possible price and buyer. Coupled with an excellent understanding of the local market we do a detailed analysis of what else has sold and what is coming onto the market so we can give you the best chance to capitalise on your biggest asset.

Book a Valuation