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Can I Use My Holiday Let Investment As A Holiday Home?

Posted by [email protected] on July 2, 2021
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Are you interested in investing into a holiday let? Then you must have the same question, can I use it as a family holiday home too? And the answer to your question is one that will most certainly please you, it is a big resounding YES!

In this article we will outline the benefits and limitations along with the regulations, so you have all the information you need to make the best decision.

The benefits

I think we should start off with the most obvious benefit which is why you are reading this article and that is you get a place to stay for free! Moving on to why would be good for business, if you go to your holiday home once a year, you’ll be going through the customer journey which will help find any faults that you can improve upon. Similarly other aspects of your holiday home such as the upholstery and the upkeep that may need attending to may be discovered during a visit which will prevent disappointed customers.

Along with completing any upkeep of your property in time for peak seasons you may also be able to get to know the area and put together a helpful guide for visitors!

The Limitations

Now onto the limitations…there are some limitations to the personal use of your home. According to HMRC, holiday let mortgages require your property to be a ‘Furnished Holiday Let’ (FHL). Properties that qualify as a FHL can appreciate tax benefits, over and above other residential and commercial property lets. To profit from these benefits, your holiday let will need to meet several conditions.

Occupancy Conditions

Availability

So HMRC states that the holiday let must be available as a fully furnished accommodation for at least 210 days of the year and obviously that doesn’t count if you are staying there. So, what we learn is don’t stay there for longer than 155 days!

Letting

You must also let the property commercially to the public for 105 days which discounts family and friends staying at discounted prices. If you don’t do this then the HMRC conditions won’t be met so just do it…

Requirements for your holiday let mortgage Some part of the assessment when being approved for a mortgage involves projection of income from a letting agent or previous historical trends. Also, this projection assumes high occupancy during peak times henceforth the general advice is not to use the home during peak times. If you do, you may risk not maximising the income annually.

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