Here are a selection of some of our Frequently Asked Questions. If you have a question that hasn’t been answered below then please contact us directly on 01285 861839, we would love to help you.
Who are Orion Sales?
Orion Sales is an integral part of Orion Holidays and operates as an independent property agent within the Cotswold Water Park at The Gateway Centre, Spine Road, South Cerney. With over 20 years’ experience specialising in the sale of these holiday homes and with an office conveniently located within the Water Park, Orion Sales is ideally placed to help with both the sale and purchase of these unique properties.
Can the properties be brought as main homes?
The properties we offer for sale are all classified as holiday homes and therefore, cannot be used as primary and permanent residences. When you purchase one of these properties, you will need to have a primary address that you supply to your solicitor.
Can we obtain a mortgage?
It is possible to obtain a mortgage, however, there are only a few lenders. Most lenders who lend on these holiday homes require an initial deposit of 25% to 30%. We have a list of independent mortgage advisors who have experience with dealing with holiday properties.
Are there any restrictive covenants?
The properties are mostly leasehold and within the lease of each development there are certain covenants for example; the management company may ask you to repaint the property exterior every 3 years to maintain the property and keep in in good order. Not to use the property as a primary residence. To keep pets under control and on a leash.
Can we rent the properties out?
These properties are ideal for this purpose. If you find yourself only using the property a few months of the year then renting out on short holiday lets is a great way of offsetting any associated costs (e.g. service charge, ground rent etc.)
What are the advantages of buying a holiday home instead of a buy to let?
If you make your holiday home available to let for 20 weeks (140 days of the year) and it actually lets for at least 70 days, the property can be run as a business with some tax advantages over normal buy to let properties.
Although there is no guarantee that this relief will continue to be available, currently, there is small business rates relief available which means that no business rates would be payable, saving between £1,400-2,000 a year in council tax.
100% mortgage interest tax relief would be available on a holiday home buy to let which is no longer available on normal buy to let properties.
If you own the property jointly, the rental income can be split in any proportion you choose to reduce tax, unlike normal buy to let properties where the income can only be split 50:50. You can elect that the person with the lowest marginal income tax rate receives all the income which could be the difference between paying tax at 45% or 0% in extreme cases where only one partner has an income and is a higher rate tax payer.
You can also elect to put income from a holiday let into a pension, which isn’t possible for a normal buy to let. Combined with the ability to elect how the income is split, this could allow either partner to make tax efficient pension contributions.
Do I need special home insurance?
It is advisable to use a specialist home insurance company who insure holiday homes specifically. We have several companies we can recommend.
Stamp duty is payable on the holiday homes and at a higher rate. Please ask us for information on the approximate cost.
How many weeks of the year can we expect to let your property?
This all depends on how much you use the property, but the occupancy can be 50 to 60% of the year.
What income can be generated?
Income generated from renting out your property is very much dependent on how often your property is made available and the quality of furnishing and fittings. If you are frequent users and the property is only available for a few months a year then you are unlikely to offset much of the costs. If, however, you are only looking to use for the occasional week/weekend and the property can be made available for key holiday periods – e.g. Easter, summer holiday, Christmas and New Year, you can be confident of being able to generate a good return.