22 May 2019
Renting out your property as a holiday home
By Nic Sheldrake, Director at Hayes + Storr.
From its open fields and plentiful walks, to the endless sands and big skies of the coast, we can all appreciate why Norfolk is a prime holiday destination.
If you have a property in Norfolk, you could take advantage of the influx of visitors wanting that home-from-home experience, which is both flexible and affordable. Your property could provide you with a source of income by renting it out as a holiday home. Usually more profitable than letting the property under a long term let, it also means that you can choose who to rent to, and for how long. However, there are factors you need to think about before you go ahead and list your property.
Your property may be subject to restrictive covenants. These are promises you made to your seller when you bought. The restrictive covenants are contained in the deeds or in the Land Registry Title Document. If the restrictions include a promise not to use the property for any trade or business, you will not be able to holiday let without breaching the covenant and risking enforcement action.
If you have a mortgage secured on the property, there may be conditions imposed by the lender restricting its use. Lenders may agree to the letting but you would need to specifically apply for permission. Holiday letting may also impact your building and contents insurance, so you will need to check your policy.
In general, letting your property as a holiday-let does not require planning permission. The property must however be safe for visitors both in its construction and its contents. Gas appliances and electrical equipment must be regularly tested, and certificates must be available for inspection. Furniture must comply with current fire regulations and a fire risk assessment may need to be carried out, together with an Energy Performance Certificate.
Finally, there are the tax implications of letting. This is a matter for your accountant, and you should speak to them as to the effect on council tax and business rates, small business relief and income tax.
Get it right and your home can not only bring you joy while you are using it but also a valuable income stream while you are not.
At Hayes + Storr we offer a service which includes checking your legal title for any restrictions which may affect your decision to holiday let. Call 01328 863231 and ask to speak to Nic Sheldrake for more information.
This article aims to supply general information, but it is not intended to constitute advice. Every effort is made to ensure that the law referred to is correct at the date of publication and to avoid any statement which may mislead. However, no duty of care is assumed to any person and no liability is accepted for any omission or inaccuracy. Always seek our specific advice.