Use the FREE Holiday/Second Home Calculator
See how much cash you can release from your home.
What are the Benefits?
About the Providers We Compare
Use the FREE Holiday/Second Home Calculator
See how much cash you can get from your home.
Did You Know? Every 12 minutes a homeowner over 55 in the UK unlocks £91,667 tax-free cash.
Want To Chat?
Chat with an Expert
* We’ll get one to give you a call.
Holiday/Second Home Calculator
Find Out If You Can Buy A Holiday Home
Many people dream of being a homeowner. With the current financial situation, and with increasing estate prices, it's challenging to be one. This guide will help you calculate how possible it is to get a holiday home or a second home.
Most of us dream of owning a home. However, with the current financial slump, and with estate prices on the rise, having a home of your own is like trying to spell ‘pochemuchka’ in a two-second spelling bee competition.
If you, however, own a second home, you’re one of the luckiest human beings on earth. What’s more, you can take out an equity release1 plan on the house and get some extra finances to help you pay for that long-awaited vacation to Kuala Lumpur or fund that home improvement project.
The lifetime mortgage plan is designed to help holiday home proprietors access the equity locked up in their second home. So, if you’re a homeowner and are reluctant about taking a mortgage scheme on your primary residence, then you might want to consider taking the equity release plan on your second home2, instead.
As with any other lifetime mortgage option, the cash you release from your holiday home is tax-free, and you have the freedom to spend the capital as you wish. You also pay the loan when you die or move into residential care.
While the range of loan policies for the second and holiday homes isn’t extensive as it’s for those who are looking to unlock the equity tied up in their primary residences, there are still numerous options to help you meet your needs and dreams.
However, if you want to secure an inheritance for your family, this mortgage scheme would be the ideal option since it doesn’t affect your principal residence. So, to see the amount of capital you’d get from this mortgage plan, here’s a detailed guide on how to use the second home calculator.
Our Most Commonly Asked Questions
The second home is the estate that should be available for the sole occupancy of the homeowner, and your plan provider allows you to let it out for a maximum of four weeks consecutively. You must also use it for a minimum of four weeks every year and have no formal contracts or assured shorthold tenancy agreement3 in place.
As with other equity release products, with the second home mortgage, you unlock the value of your estate by turning it into a capital lump sum or monthly income. However, to qualify, you must be aged 55 and above and own an estate worth more than £70,000 but not over £6 million. Your estate should also be located in England, Scotland or Wales.
Well, the amount you can receive depends on your equity release provider and the amount of equity that’s tied up in your estate. According to research, with this form of equity release mortgage, plan providers use precise loan-to-value (LTV) criteria.
Therefore, this can start from 14% at age 55, rising to 45% between ages 90-95.
Well, most people take it out to:
- Fund their home improvement plans
- To pay for their existing debts and mortgage
- To cater to the healthcare costs
- To pay for the much-needed vacation
To figure out the amount of cash you’d get from the lifetime mortgage scheme, you need to compute:
- The estimated value of your residence
- Your home’s location
- The age of the youngest homeowner
Some lenders also ask you to input:
- Your gender
- Your marital status
To figure out the maximum amount of capital you could get with a second home lifetime mortgage, you have to use the holiday home calculator. The instrument will require you to input:
- The value of your estate – it should be at least £70,000 and in the UK
- The age of the youngest proprietor – he/she needs to be at least aged 55 or above
- Your residence’s location – as per the Equity Release Council, one’s estate should be within the remits of England, Scotland or Wales
It’s the criteria that most mortgage providers use when deciding the amount of equity you can borrow from the capital tied up in your home.
Having a second home is a lifelong achievement for most people. It means having a place to escape when your primary residence and surroundings become a bit boring. Therefore, if you want to see how much you could get from taking the second home mortgage, try using the holiday home calculator and know the amount you’re eligible for. It’s that simple!
Equity release is such a great option if you want money and you want it fast. It’s a way to provide for instant needs at low interest rates. If you’d like to buy a second house or a holiday home, it’s also a great option to make that possible for you and your family. But you don’t always know how much you’ll be able to borrow. And that can be off-putting. No worries! This holiday/second home calculator is there to sort out that problem for you.
How Much Can You Release?
Most people are using Equity Release as a means of retaining the use of their house while also obtaining a lump sum or a steady stream of income. Get matched with an expert and check your eligibility for equity release options.
Use our free equity release calculator & see how much you can release today.
SovereignBoss.co.uk is a marketplace connecting people with mortgage firms. Accordingly, SovereignBoss.co.uk does not provide quotes or sell products directly to consumers and is not a licensed agent or broker.