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Original poster

Can we stop our house becoming a holiday home?

50 replies

Paracharisto · 18/08/2023 16:32

DH and I have retired to a beautiful and very popular coastal town. We bought this house in 2009 for £500k. It’s now worth around £1.5mil. Most houses around us are now holiday homes for wealthy London professionals or are owned by one local old family.

If we sell this house, how can we ensure it doesn’t become a holiday home? Sure we could pick the buyer but what’s to stop them selling it down the line?

We’d like the house to be used as a family home or a retirement home but not a holiday home. We’d be willing to take a big hit financially as the £1mil we have in equity growth is completely unearnt. It’s never going to be a house that those who struggle most to get on the local property ladder will be able to afford, but it would be an amazing home for someone in the community.

OP posts:
BernadetteRostankowskiWolowitz · 18/08/2023 16:34

People retiring into the area are what drives the price up too you know?

TeeBee · 18/08/2023 16:34

Well, you can't dictate how a house is used once it doesn't belong to you.

clopper · 18/08/2023 16:35

Sell it much cheaper to a local family you know perhaps?

Original poster
Paracharisto · 18/08/2023 16:35

I’m well aware, but I worked for five years when first down here as a GP.

OP posts:
SchoolBlazers · 18/08/2023 16:36

You can't. Once it's sold, it's not yours any more.

DinnaeFashYersel · 18/08/2023 16:36

I think they only way you could dictate it's use would be to gift it to a charity with legal terms set it out for its use.

If you sell it then it's entirely up to future owners what to do.

Notamum12345577 · 18/08/2023 16:37

Paracharisto · 18/08/2023 16:32

DH and I have retired to a beautiful and very popular coastal town. We bought this house in 2009 for £500k. It’s now worth around £1.5mil. Most houses around us are now holiday homes for wealthy London professionals or are owned by one local old family.

If we sell this house, how can we ensure it doesn’t become a holiday home? Sure we could pick the buyer but what’s to stop them selling it down the line?

We’d like the house to be used as a family home or a retirement home but not a holiday home. We’d be willing to take a big hit financially as the £1mil we have in equity growth is completely unearnt. It’s never going to be a house that those who struggle most to get on the local property ladder will be able to afford, but it would be an amazing home for someone in the community.

Can you put that sort of thing in a covenant?

GangleLoper · 18/08/2023 16:37

You can put an uplift clause into the contract so that the vendor would be financially penalised for using it as a holiday home.

GangleLoper · 18/08/2023 16:39

It’s quite common in properties with land and I’ve seen them where the new owner would be liable to pay the former owner if they run an equestrian business from the site. It was reflected in a lower sale price though.

coxesorangepippin · 18/08/2023 16:40

What on earth?

No, you can't do that

fairlygoodmother · 18/08/2023 16:42

I think the best and possibly only way to stop it from becoming a holiday home is to keep it and rent it to a local family for a reasonable rent. Any other way you can't keep long term control.

SleepingStandingUp · 18/08/2023 16:43

Honestly if you're that controlling, don't sell. I understand your ethics on this, but you can't dictate what buyer after buyer does.

Can you look to rent it on a long term let?

SadlyACupOfTeaDoesNotSolveEverything · 18/08/2023 16:46

You can’t. Options include renting to a local family and don’t sell?
Sell it to a local family for £600k, they put the property back on the market next year fir 1.5M and move away happily mortgage free.

JengaCupboard · 18/08/2023 16:49

I think there might be a covenant however I assume it is dictated by the local authority and not the individual owners.

We were at one time looking at property (full time not holiday home) within Snowdonia National Park, and lots of the houses we viewed online said specifically that they were only to be bought/sold as a permanent residences and not for holiday homes, as was very common in that area.

Not sure how heavily it could be policed even then, with the likes of AirBnB etc.

anniegun · 18/08/2023 16:49

You could put a covenant in the sale. It would be quite easy although it will put off many buyers. A solicitor can arrange it.

HateLongCovid · 18/08/2023 16:54

fairlygoodmother · 18/08/2023 16:42

I think the best and possibly only way to stop it from becoming a holiday home is to keep it and rent it to a local family for a reasonable rent. Any other way you can't keep long term control.

This - Excellent idea .

anniegun · 18/08/2023 16:55

Cant believe the number of posts saying you cannot do this, its perfectly possible.

GrannyAchingsShepherdsHut · 18/08/2023 16:55

My house has a covenant - the whole development from the 1970s does - that it's only allowed to be a single family dwelling. Solicitor said that excludes it being a holiday home.

Plankingplanks · 18/08/2023 17:16

You can put a covenant on it saying it can't be used as such. My own house has such a covenant

Parky04 · 18/08/2023 17:17

clopper · 18/08/2023 16:35

Sell it much cheaper to a local family you know perhaps?

And they will sell it for a massive profit!

AbacusAvocado · 18/08/2023 17:33

As usual, lots of people confidently posting about the law without knowing anything about it.

Yes - you can put a covenant on the property that it must only be used as a single family dwelling and not as a holiday home. You will need to specify a local organisation that has the benefit of the covenant (eg a community charity), so long term they can enforce it if they can demonstrate that breaching the covenant would harm the local interests that they represent.

A property solicitor would deal with this for you. Just inform the estate agent before marketing that the property will be subject to this covenant.

AbacusAvocado · 18/08/2023 17:34

Google for “restrictive covenants” and you’ll find lots of info!

FairAcre · 18/08/2023 17:34

But didn’t you use it as a holiday home if you bought it in 2009 and have retired there?

Duckingella · 18/08/2023 17:39

If you sell cheaply to someone they'll most likely put it back on the market sharpish and walk away with your profit.

Even if the buyer wants to live in it there's nothing to stop them selling up and the next buyer using it as a holiday home or the next buyer after that.

DaffoldilsandDaisys · 18/08/2023 18:02

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This message has been withdrawn at the poster's request