Edinburgh home owners who sub-let their properties during Edinburgh Fringe may be in breach of their mortgage terms, according to property experts.
People who are visiting a destination during a festival or holiday period, often use the booking site AirBnB to book accommodation. This website makes it easier for home owners to let their homes for a short term.
Short term sub-let is a popular business, with the potential for high income, especially for residents of Edinburgh during Hogmanay and festival season. However, experts say that home owners who leave their property and rent out their home on a short term basis are potentially violating their mortgage agreement terms.
In Edinburgh, the average monthly rental income through AirBnB is reportedly around £2,187. However, experts have warned that home owners should consider a number of factors before sub-letting.
The operations director of Warners Solicitors & Estate Agents, David Marshall, advises that home owners who are considering this scheme should check the terms of their mortgage agreement to ensure it is allowed. He added that there are significant risks associated with short term property letting, stating that it may be difficult to recover the costs of any damage which was caused by tenants.
According to the director of Umega Lettings, Neil McInnes, there are specific mortgages for holiday lets which have higher interest rates and aren’t generally available on the high street.
If a buyer intends to let out their property short term, speaking to a CeMAP trained mortgage adviser will ensure that you apply for a mortgage which permits this.
