For a family with a much-loved holiday home in Looe, Cornwall, the property represented something more than bricks and mortar. It had been the backdrop to years of family life — never let out, never earning, simply enjoyed. But when the opportunity came to buy a dream property abroad, they needed to unlock what was sitting in the walls. A holiday home to holiday let remortgage would be the mechanism. Getting there was a different matter.
What was the situation?
The family owned their Cornwall property outright. No mortgage, no debt, and no rental history. Over the years it had served purely as a personal retreat, which meant there was no income track record to present to a lender — and no obvious starting point for a mortgage application.
They had a clear goal: release enough equity to fund a property purchase in Spain, while also covering some finishing work on the Cornwall home to bring it up to the standard needed for holiday letting. They needed certainty on the funds before they could move forward on anything abroad.
What was the challenge?
The absence of any letting history was the central difficulty. Most lenders assessing a holiday let mortgage want to see a property that has actually been let — or at minimum, a credible projection of what it could earn. Without either, the application had an obvious gap.
There was also a valuation issue. Local estate agents had been talking down property prices in the area, and the family were concerned this pessimism might translate into a lower-than-expected valuation — reducing the amount they could borrow and potentially derailing their plans entirely.
Time was a factor too. The Spanish market moves quickly. They needed a decision and a timeline they could rely on.
Very happy to share fantastic feedback for James and the team who supported us again in securing a great mortgage. Thanks again.
What did we do?
The first task was lender selection. Not every lender in this space permits equity raised on a UK property to be used for a purchase abroad — and among those that do, fewer still will lend without any letting history. Research identified a lender whose criteria accommodated both requirements, and whose approach to projected rental income, rather than historical figures, meant the absence of a letting record was not a barrier.
To support the projected income figures, Oakstead sourced valuations from established holiday let management companies with direct knowledge of the local market. These gave the lender independent, informed projections for what the property could realistically earn as a let.
A Mundic report — a structural assessment required by lenders for properties built with certain types of Cornish aggregate, which can deteriorate over time — was commissioned and submitted alongside the application. The report confirmed the property was in good structural condition, satisfying the lender’s due diligence requirements and removing a potential barrier to the offer.
On the valuation, the groundwork paid off. The professional projections and supporting reports helped the property achieve a valuation well ahead of what local agents had suggested.
What was the outcome?
The family secured a 2-year discounted rate at 4.58%. The shorter product term was deliberate — it gives them the flexibility to review their position once the property has a letting history and market conditions become clearer.
Equity was released and the funds were in place. The improvements to the Cornwall property could go ahead. And the purchase in Spain — the thing that started all of this — was finally within reach.
The whole process took three months from first conversation to completion.
If you own a property in the UK and are thinking about releasing equity to fund a purchase abroad, or want to understand whether a holiday let remortgage could work for your situation, Oakstead Finance can help you work through the options.
