Guide to buying a second home

Buying a ‘home away from home’ is an exciting experience and is growing in popularity. Whether you are dreaming of a seaside retreat in Suffolk or a luxury villa in Spain, you have a choice of locations that give you the best of everything. Here are a few questions to consider that may help guide you in buying a second home.

Why do you want to buy a second home?

You may have many reasons for buying a second home and choosing the right property will allow you to meet them. A weekend retreat can also be a great investment. If you improve it or rent it out as a holiday let, you may make further gains. You may also choose to enter the buy-to-let market or want to buy something larger that can produce an income from multiple sources. Maybe after years of hard work you want a home with amazing features to share with your friends and family in exclusivity with breathtaking views in sublime luxury.

How far away is your desired location?

Just how do you choose your location when there are so many places in the UK and abroad that offer huge appeal? You may be enamoured with many locations from the sun-drenched shores of Europe to the more tropical climates of Thailand and Mauritius. If you are planning on regular stays, commuting time is an important consideration. Spain, France, and Portugal are conveniently located making them popular choices. If you are planning on spending significant amounts of time in your second home, exotic locations make more sense. Conversely, you may love the idea of escaping in minutes and prefer something much closer within the UK.

What type of property do you want?

A charming chateau with its own vineyard or a modern, cutting-edge architectural design with floor-to-ceiling sea views? Features such as an outdoor pool, expansive entertainment areas or a cinema might be high on your priority list. Perhaps you want a luxurious apartment in a city location, or a property featuring magical gardens with land, a tennis court and beautiful views. Whatever your property dream is, you can live it, because it's out there waiting for you. If you are considering letting all or part of your property as a holiday let, investing in a home that has an additional property may help cover some of its costs. Within the UK, the possibilities are equally endless, from modest cottages to castles and exciting city apartments.

Financing your second home

Whether this property purchase is the first time you buy a second home or you are adding to an existing portfolio, you have options when it comes to buying. If you are borrowing to buy your second home, existing equity in your current home could cover your deposit. And if you are purchasing a property that can generate income, then your mortgage provider may take this into consideration. Stamp duty at an additional 5% applies to secondary home purchases in England and Northern Ireland, 4% in Wales and Scotland, with a Stamp duty surcharge of 2% for non-UK residents. For UK residents looking to buy abroad, certain destinations may offer more favourable tax incentives than others, so it’s important to do individual circumstances and motives for buying, so seeking expert advice may be beneficial.

Currency exchange with Lumon

On your journey to buying abroad, it is important to explore your currency choices. Discover the options you can use to mitigate the risk to your budget from adverse currency movement, address payment complications, and avoid potential hidden fees by speaking with Lumon, our currency exchange partner. Their expert guidance and services streamline the process, ensuring a smoother and more cost-effective property purchase, allowing you to focus on finding your new home.

Contact us

Speak to your local Fine & Country agent for advice on buying or selling.