Buying a holiday home.

KFGTFC

I am considering buying a timber lodge on a golf course complex.
It is officially a holiday home that you have to vacate once a month and you have to have proof of residence elsewhere. I have this and can comply with the once a month thing, but I do intend living there MOST of the time.
There is a ground rent of 3.6k per year which is normal with park homes, and the water, gas and electric bring the total costs to about 5k per year.
The lease is only till 2051 though, another 46 years, presumably because is made of wood, and so I am well aware that this is more of a lifestyle choice than an investment and am fine with that.
Is there anything I should bear in mind, such as what happens if the owners go bust or sell up, have I got any protection? What are the worst case scenarios?
I would intend being there for the next 8-10 years.
I know I should really invest in freehold bricks and mortar, but I can't find anything acceptable within my budget and I really want to live there.

davidmcn

KFGTFC wrote: »

I know I should really invest in freehold bricks and mortar, but I can't find anything acceptable within my budget and I really want to live there.

Well, you can't, because it's meant to be a holiday home. It will almost certainly be a condition of your lease, and of the site's planning consent, that nobody uses the homes as their principal residence.

If literally the only condition is that you have to vacate it for once a month, then fine, but I expect it goes further than that.

carefullycautious

A residential park home would suit your needs better as you would have more protection. Also the ground rent per month is around 100 pounds (at least in my area it is)


Why would you put yourself at risk of being thrown out of your home for breach of the lease?


With the amount you are paying per year you would be better doing shared ownership, as it would possibly work out cheaper

PasturesNew

Even if you comply with the rules of vacating and providing proof of a permanent address, you'll continually live under the fear of being "rumbled" and the potential for eviction. If you do plan on doing this, then at least ensure that it's a site well known for turning a blind eye...and don't just trust that appearing to live by the rules will get you through.

As a rule of thumb, this might be a choice you'll regret at the future point when you do come to move.

It's not just the site owners you have to watch over your shoulder for - it's the local planning authority that granted them their permission ...and if anybody has an axe to grind about anybody on the site they could potentially raise the issue with the local authorities.

Additional costs of ownership will be the depreciation, over time - and the %age you have to pay the site owners when you sell (could be more than 10%, 10% maximum is set in law for residential site owners, but holiday lodges can be much greater).

This is a really expensive way to live for many when you do all the sums.

AlexMac

I think you should buy. After all, the Company which own the site probably really need the £200k you will pay them over the next 40+ years in annual fees after inflation is factored in and you will enjoy the frisson of living a lie