Getting Ahead of a New Staycation Hotspot With Rapid Refurbishment Finance

scenarios unparalleled underwriting banner

For those who are entrepreneurial, few things pose as much opportunity as discovering what the “next big thing” will be, while also finding a way to take advantage of the coming boom on the cheap. The property market can present these kinds of opportunities, but speed will be of the essence, considering how competitive the market is.

Take the recent staycation boom. As overseas holidays were put on hold, we saw rising demand for UK based breaks, with the likes of Cornwall and Devon doing very well as a result. This demand has somewhat died-down since the pandemic, but say a property investor discovers that the Norfolk coast is set to see its own staycation boom in the coming months, as investment has been poured into the area to establish it as a burgeoning “off-grid” haven.

At the same time, they find that a local landlord in the area is keen to sell their beachfront HMO quickly as they are moving overseas. The HMO is priced relatively cheaply for the area, given it has been left vacant for some time, and is in need of a bit of TLC.

This is a prime opportunity, but the pressure is on to move quickly. The property investor here will want to get ahead of their competition before they also catch on to the opportunity. Also, they discover the property a mere three months before the summer months, leaving little time to get it ready for the holiday season.

Fortunately, we could hit two birds with one stone here. We could deliver capital within mere days, which would allow the borrower to both purchase the asset, and renovate it so it’s better suited for the short-stay rental market. On the latter, we would make sure we received a schedule of works so we could see exactly how our funding would be utilised.

For the exit strategy, the borrower could move on to a long-term mortgage once the property had proven itself as a solid rental opportunity that generated income.

FAQ

What kinds of refurbishments do you support?

Many landlords focus on cosmetic upgrades, like new flooring, redecorating, or modernising outdated features. Others may reconfigure layouts to create additional bedrooms, especially in HMOs, or add amenities that attract higher-paying tenants. Some refurbishments are driven by local council licensing standards or energy efficiency rules. Whatever the plan, having flexible finance in place can make a huge difference. At Market Financial Solutions, we can support a wide range of permitted and light development works and tailor each facility around the scope of works and the investor’s timeline.

What are popular holiday let features?

There are a few common features which tend to appeal to many different kinds of holiday makers, such as swimming pools and game rooms. But more niche features could prove enticing, such as being pet friendly, including hot tubs, or even featuring onsite fishing options.

What leisure activities are popular in the UK?

According to tracking data from YouGov, there are many popular leisure activities that can be factored into a holiday let investment strategy. Going to restaurants and cafes ranks highly, so investing in a holiday let near these kinds of establishments could prove worthwhile. Spending time with friends and family is also important to people, so purchasing a large property that can accommodate large groups may make sense.

Do Airbnb’s count as holiday lets?

Yes, Airbnb’s can fall under the holiday let umbrella. Although, if property investors plan to purchase an Airbnb, they’ll need to adhere to Airbnb’s specific rules and legal requirements. This includes following its 5-step hosting process, and commission structure.