Reply to: What return do you get (or would you need) on a holiday home/BTL?

[d000hg]

Or that no-one wanted to rent it. 150k has to be a crap flat.

You're just wrong. Property prices aren't the same everywhere as in London. Some simple maths looking at rental prices or holiday let prices down here show that it's reasonable - it might rent for £600pcm or a bit less.
Cornwall is generally not an expensive area for property, not far off the North (where £160k can get you a 4 bed detached house with garden in an OK neighbourhood or 2-3 such places in a rough area)

I'd see it as somewhere for us to go and chill when we're not renting it out.

In terms of the day rule, is it the days that you have it available for letting or the days that you actually let it that qualifies it as a holiday let?

I think the rules are on the latter but with some flexibility if it is available. However you can't count weeks you give to your mates really cheaply... HMRC's site is actually full of useful stuff with examples for FHLs.

[scooterscot]

Got close to 80% occupancy last year with city pad;-)

[LondonManc]

It is a weird model, that you a buy a place to leave empty 50% of the year. Not wonderful for local communities but still better than people buying a 2nd home they spend 3 weeks in a year!

That's what this flat was. It sat empty presumably 40+ weeks a year, weird!

I'd see it as somewhere for us to go and chill when we're not renting it out.

In terms of the day rule, is it the days that you have it available for letting or the days that you actually let it that qualifies it as a holiday let?

[MarillionFan]

It is a weird model, that you a buy a place to leave empty 50% of the year. Not wonderful for local communities but still better than people buying a 2nd home they spend 3 weeks in a year!

That's what this flat was. It sat empty presumably 40+ weeks a year, weird!

Or that no-one wanted to rent it. 150k has to be a crap flat.

[d000hg]

It is a weird model, that you a buy a place to leave empty 50% of the year. Not wonderful for local communities but still better than people buying a 2nd home they spend 3 weeks in a year!

That's what this flat was. It sat empty presumably 40+ weeks a year, weird!

[LondonManc]

If you let it out week by week, furnished, it's a holiday let (FHL). You can't have people stay longer than 31 days on one go and it needs to be let for 201 days a year (from memory, there are some areas of leniency).
BTL/FHL are quite different in how they function.

Thanks. Like I said, I'm a couple of years behind you on this plan. I'm definitely looking at FHL rather than BTL.

[d000hg]

They don't seem to have a problem from what I can see...

I would agree with the 1200 - 1700 mark being the good stuff

Thought about it but don't want to commit the capital required just yet... figured we'd try the water with a property that realistically could be resold quickly without costing us much.

So if you buy a flat in Leeds, it's a BTL but the same in Torquay equals a holiday let?

If you let it out week by week, furnished, it's a holiday let (FHL). You can't have people stay longer than 31 days on one go and it needs to be let for 201 days a year (from memory, there are some areas of leniency).
BTL/FHL are quite different in how they function.

[LondonManc]

Certainly less blubber. People actually exercise.

Football hooliganism *is* exercise.

[scooterscot]

But the Germans are as clean as the English.

Certainly less blubber. People actually exercise.

[LondonManc]

Personal hygiene not much of a problem here.

But the Germans are as clean as the English. The crackden that is Edinburgh? Only the cold stopping the stench while the 5 million litres of vegetable fat stops Glasgae reeking of BO and Buckies

[scooterscot]

Lots of English on here, how about applying the same rules

Personal hygiene not much of a problem here.

[scooterscot]

You must really hate the English if you chose Munich

It was a joke I've absolutely nothing against people from England. But that's the stereotype expected of me and trying to change that is like skiing up hill. Pointless and a waste of energy.

I rather like all the snow in Munich. Saying that, this was Edinburgh a few years ago:

[LondonManc]

HMRC currently treats BTLs as an investment and holiday lets as a business. THis will show up in the coming years as the interest on BTL mortgages is gradually disallowed as a business expense (we BTL landlords are all tax cheats, you see ).

If you are going to holiday let, or use the property as Serviced Accommodation (also A Real Business) be sure to finance it with a 'proper' commercial mortgage, not a BTL one.

So if you buy a flat in Leeds, it's a BTL but the same in Torquay equals a holiday let?

[bobspud]

Can plebs afford £700+/week? That's what a 2-bed flat goes for here!

They don't seem to have a problem from what I can see...

I would agree with the 1200 - 1700 mark being the good stuff

[MrMarkyMark]

It's full of English people too. I had to get out.

Lots of English on here, how about applying the same rules