More than ten percent of the adult population in the UK now owns a second home and the rise in multiple home ownership is showing no signs of slowing. With many people looking for greener places to live, full or part-time, we can only recommend buying your second home here in Virginia Water.
Remember, if you are looking to sell your property or move to the area, take some time to browse our Properties for sale in Wentworth Estate, Properties for sale in Virginia Water and the surrounding areas. If you have any questions, you can also visit our award-winning website or call us on 01344 843000 and email us
The second home purchase
Many people buy additional property for investment, as a holiday home or they purchase on behalf of someone else. Many people buy homes in Virginia Water to be closer to the wonderful array of golf courses we have on the doorstep and in the local areas of Surrey and Berkshire; or to be closer to the fantastic independent schools that we have in and around the area. Whatever it is that brings you to the area, there are a number of ways you can finance a second home; cash, mortgage or releasing and using equity from an existing property, these being the most popular ways of buying additional properties.
A second home purchase made in cash
This is the easiest way to buy property, by having the cash up front you can set your budget, find a home, have the relevant checks/survey conducted and all going well the home is yours in a matter of weeks. If you’re in this position, make sure to contact us to get you on your way to finding and making your next purchase, we are the leading Estate agents in Virginia Water.
Getting a second mortgage to make your purchase
Many homeowners feel that they need to pay off an existing mortgage before they can get a second property, however you can have two mortgages running alongside each other, as long as you can demonstrate to mortgage lenders that you can afford the additional home. Lenders will make all of the same checks that they made when you applied for the first mortgage, such as review your credit rating. You will also help yourself by having a decent deposit to put down, and ensure you can provide a full insight into your income and expenditure. They will also want to know if you are due to make any income on the property that you are looking to buy. There are also different mortgages depending on your intensions for the property. You can apply for mortgages such as buy-to-let if you are looking to make an investment and let it out to others. There is also another way to get a mortgage when you own an existing property, ‘let-to-buy’ which is based on letting out the property you currently live in so that you can go on to purchase a new home for you to reside in. There are many different rates and offers out there depending on the intended use of the property.
Releasing and using equity to buy your second home
If the home you currently own now has a large amount of equity built up on it you can contact your lender to discuss releasing some of the funds to cover a percentage, or all of the cost, of the additional property that you want to buy. Equity is usually released by re-mortgaging the property you have which frees up cash to spend on a second property. Once you know what available cash you have from releasing equity and the overall amount needed to make your purchase, you’ll know if you need to get an additional mortgage or can afford a second home outright.
Costs to consider when buying a second home
Buying a second home can be really exhilarating, however there are some additional costs for the second property that you may not already be aware of and you may need to consider if you may or may not be keeping the property for a while.
There is an additional stamp duty on a second home
Stamp Duty is a tax in England or Northern Ireland payable if you buy a residential property or a piece of land here. To purchase a second home, you will need to pay an extra 3% Stamp Duty at the relevant rates at the time of purchase. This tax also applies to both freehold and leasehold properties and is payable regardless of how you purchase your second home, whether that is buying outright in cash or with a mortgage. If you are purchasing the home for someone else, while still having it in your name it will be classed legally as your second home.
Council tax is still required on second homes
You might not be planning on being at your second home 365 days of the year however; one of the ongoing costs of a second home alongside energy bills, is council tax. Council tax in the UK pays for the police, the fire service and many other local services along with making your contribution to the many services in the area that the council provides such as; rubbish collections, local schools, maintaining roads, running libraries, and providing support for vulnerable children and adults. It is a tax that is payable regardless if you are there part or full time. If the property is let out full-time it would be down to the tenant to cover the cost of this.
If you sell your second home there is also a Capital Gains Tax to be paid
If you decide to sell your second home within 2 years, or you don’t live in it as your main residence for a period of 2 years, if you decide to sell you will need to pay a Capital gains tax on any profit. Capital Gains Tax is a government tax on any profit that you make when you sell an asset, such as a second home, that has increased in value since you purchased it.
Finding the right second home
Whether it is somewhere for you to visit frequently, move to permanently, rent out to others full or part-time, or a place that you are purchasing for a loved one, we are here to offer expert help and advice along the way to help you to find the perfect property for your budget.
GET IN TOUCH
If you are thinking of moving to the area or buying a property to rent, make sure you take a look at our amazing portfolio of Properties for sale in Virginia Water and the surrounding areas. If you’d like to speak to someone about Properties to let in Virginia Water, a member of our expert team would be happy to help. You can call us on 01344 843000 or email us. You can also follow us on Facebook, Twitter, Instagram, and LinkedIn.
