Buying a holiday home
Discussion
Hello all.
For several years my OH has wanted to buy a holiday home in her home town (NW Scotland) that we can use when we're up there and make some £ from the rest of the time/bit of an investment. The particular place we're looking at is a 2 bed chalet type set up (we've stayed in one several times). They're are a number of chalets so I'm assuming (but will need to confirm) that a cleaning/management service is available-although this makes me wonder why the owners of the site are selling one off. Alternatively we could possibly draft in family up there to keep an eye on things.
I know pretty much nothing on the ins and outs, hidden/unconsidered costs so looking for a bit of advice so we can go into it as well informed as possible. I've looked over the past few months and the other seem to have been 100% occupancy through June, July, and August at a weekly rate of £700 so based on 700 x 4.1 x 3 £8610.00 for the peak months. The seller claims potential income of 15-20k, but keen to know what ballpark of % would be taken on management/maintenance, tax liability etc.
We'd have around 20% deposit and mortgage the rest over 10 years, wouldn't be doing this to make an income so providing it made any profit we would pay this towards overpaying the mortgage. Would be great to have a crash pad when we go up there rather than shelling out on hotels, sleeping on sofas and floors of family. It's in a beautiful spot has fishing rights for a loch within spitting distance.
Before this I was thinking of buying a plot of land and either sitting on it or sticking a static caravan on the land-not for holiday rental just somewhere to stay.
Would appreciate advice from anyone who owns holiday lets in the UK and operate them from a distance (we're ~4.5 hours away).
For several years my OH has wanted to buy a holiday home in her home town (NW Scotland) that we can use when we're up there and make some £ from the rest of the time/bit of an investment. The particular place we're looking at is a 2 bed chalet type set up (we've stayed in one several times). They're are a number of chalets so I'm assuming (but will need to confirm) that a cleaning/management service is available-although this makes me wonder why the owners of the site are selling one off. Alternatively we could possibly draft in family up there to keep an eye on things.
I know pretty much nothing on the ins and outs, hidden/unconsidered costs so looking for a bit of advice so we can go into it as well informed as possible. I've looked over the past few months and the other seem to have been 100% occupancy through June, July, and August at a weekly rate of £700 so based on 700 x 4.1 x 3 £8610.00 for the peak months. The seller claims potential income of 15-20k, but keen to know what ballpark of % would be taken on management/maintenance, tax liability etc.
We'd have around 20% deposit and mortgage the rest over 10 years, wouldn't be doing this to make an income so providing it made any profit we would pay this towards overpaying the mortgage. Would be great to have a crash pad when we go up there rather than shelling out on hotels, sleeping on sofas and floors of family. It's in a beautiful spot has fishing rights for a loch within spitting distance.
Before this I was thinking of buying a plot of land and either sitting on it or sticking a static caravan on the land-not for holiday rental just somewhere to stay.
Would appreciate advice from anyone who owns holiday lets in the UK and operate them from a distance (we're ~4.5 hours away).
Yes it's wooden construction again something to ask, i.e. how old it is and figure out how long such chalets can reasonably expect to last without a full rebuild.
My niece does some cleaning at weekends for holiday lets and the BIL has a some BTL properties so could rely on him in an emergency. Although I suspect a management set up will be offered from the site owners.
Mortgage is something I'll look in to do today.
Elster thanks for the PM going to have a read now cheers!
My niece does some cleaning at weekends for holiday lets and the BIL has a some BTL properties so could rely on him in an emergency. Although I suspect a management set up will be offered from the site owners.
Mortgage is something I'll look in to do today.
Elster thanks for the PM going to have a read now cheers!
s2kjock said:
Management of holiday lets can be a lot of hassle, and it can be difficult to get reliable staff to deal with handovers, especially in remoter areas. Might explain why the current owners want to sell.
I'm hoping it will becoem a lot more clearer this weekend when we can take a look. You can also (for a cut obviosuly) have them be the key holders and do the cleaning etc. The current owners own a pub on the site, and other lets (converted farm) so perhaps tehy looking to raise some equity whilst still making an income if they sell they're lodges but magage them. There's a £65 a month service charge assume for water, roads etc. It will be a non-strater if you don't own the land it sits on outright, you can do similar with park homes in England but it's a lease of the plot. The info states freehold though so I'm expecting you own the land with certian conditions.Gassing Station | Business | Top of Page | What's New | My Stuff