We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Scottish holiday cabin purchase - owner wants cash from sale & income from rental!
MissScot
Posts: 4 Newbie
I am wanting to buy a holiday home in Scotland and the seller has stated that if we want to use it for friends and family that is fine, but if we want to market it as a holiday home and use it as a business he must be retained as the 'Manager' and take a sizable cut of the profits - at least for the first couple of years. I understand he has 3 homes in total for sale and we bought one we would be in competition with him.
However, we are purchasing it as an investment with the hope of attracting holiday lets. It is a small collection of homes and I wouldn't want to fall out with a neighbour, but I am struggling to work out if this is legal. He isn't marketing this through an agency.
Has anyone come across this elsewhere or has any advice? He is clearly very business minded but I don't see how he can expect to benefit from the sale of the property AND get a regular income from it.
However, we are purchasing it as an investment with the hope of attracting holiday lets. It is a small collection of homes and I wouldn't want to fall out with a neighbour, but I am struggling to work out if this is legal. He isn't marketing this through an agency.
Has anyone come across this elsewhere or has any advice? He is clearly very business minded but I don't see how he can expect to benefit from the sale of the property AND get a regular income from it.
0
Comments
-
What exactly are you buying here? What's the tenure?I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0
-
I have no idea about the legal side, but personally I would tell him to do one.
If he want money from letting it,he should not sell it.0 -
Hi there! It is to be sold freehold and the property is a cabin. I understand that these particular cabins can be used throughout the year, not just for 11 months. The owners manage the site themselves but around two thirds have their cabins available as businesses. The seller owns three cabins and manages one other.0
-
Hi there! It is to be sold freehold and the property is a cabin. I understand that these particular cabins can be used throughout the year, not just for 11 months. The owners manage the site themselves but around two thirds have their cabins available as businesses. The seller owns three cabins and manages one other.
I would walk away. Assuming you agree to this set-up, he will a) take a chunk of your profits and b) push customers to rent his own places and probably neglect yours (he gets 100% of his own rental income but only 25% or so of yours). If you talk him out of it and buy the place with no strings attached, he may not be best pleased. He will probably spend more time on the site than you, and I'd be worried about what the disgruntled vendor gets up to. Irritating your customers? Making life difficult for you?0 -
There's nothing illegal in what the vendor is proposing, so long as you both agree to the terms proposed and they are included in the contract.
For the reasons stated above by others I wouldn't dream of entertaining such a proposal. Either he wants to sell it or he doesn't, what you do with it after you've bought it is up to you.0 -
Freehold is not a term used in Scotland (much), so I would fully expect the land to be part of a Feu, and either he (or you) would have a feudal superior, irrespective of your purchase, the land it sits on will probably not be yours.0
-
Not sure about cabins, but this is pretty normal for holiday static caravans. I have had four different family members have the same thing on four different managed sites and so it appears to be the norm.
Olias0 -
I would fully expect the land to be part of a Feu, and either he (or you) would have a feudal superior, irrespective of your purchase, the land it sits on will probably not be yours.
Was this not done away with under the Abolition of Feudal Tenure etc (Scotland) Act 2000?0 -
Holiday cabins and static caravans are sold either leasehold or freehold in Scotland so we would own the cabin outright. Tellingly, the cabins have been on the market for more than 14 months so I suspect no-one is 'biting' for the very reasons listed above. The land is managed by all the owners but if this chap is a big personality I'd be nervous about buying any of the cabins, given the potential for him to make life difficult. Thanks for all your suggestions folks!0
-
Freehold is not a term used in Scotland (much), so I would fully expect the land to be part of a Feu, and either he (or you) would have a feudal superior, irrespective of your purchase, the land it sits on will probably not be yours.
As previous poster says, this was done away with in a change of legislation.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 352.2K Banking & Borrowing
- 253.6K Reduce Debt & Boost Income
- 454.3K Spending & Discounts
- 245.3K Work, Benefits & Business
- 601K Mortgages, Homes & Bills
- 177.5K Life & Family
- 259.1K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards