Buying a second home is a great position to be in.
Some buyers choose holiday homes.
However, this term is often mixed up with holiday lets.
Read on to learn the difference and whether or not you can live in either kind.
Holiday homes: An Overview
A holiday home is a property that’s used for recreational purposes, usually short breaks.
They can be different kinds of property, such as houses, flats, bungalows, etc.
And they can be in designated communities or amongst regular ones.
Most of the time, a holiday home will be an attractive location, such as Cornwall, Scotland, or Wales.
It’s not the property owners’ primary so. So, it’s defined as a type of second home.
Holiday homes vs holiday lets
Holiday homes are for the personal use of the homeowner. Holiday lets, by contrast, are for the homeowner to rent out.
Holiday lets can be an excellent source of income. But if they are bought with a buy-to-let mortgage, lenders stipulate that only renters can live in them for extensive periods.
Holiday lets aren’t really second homes, but they are second properties.
Living in a holiday home
Whether or not you can live in a ‘holiday home’ depends on whether it’s a holiday let or a holiday home. And if it’s the latter, whether it’s in a residential area or one in a holiday park.
A holiday home is just like a second home, which can be used as much as your main residence.
Holiday lets are quite different. When in residential areas, they aren’t really ‘homes’ for the owner, because they can’t be lived in.
And ones in holiday parks may require a contract. This will come with rules on the number of visiting days, purposes you can use it for, and more.
That said, some offer 12-month occupancy, so you can live there all-year-round.
Living in a holiday let
Buying a holiday let, or getting a buy to let mortgage on a holiday home, usually involves agreeing not to make it your main residence.
In both cases, living in it permanently could bring legal consequences.
The holiday park can take action against you for breaking the agreement. And your lender may cancel your mortgage (after all, this is mortgage fraud).
In either case, you may be fined, lose ownership of the house, and damage how much you can borrow.
How long you can live in a holiday let depends on the holiday park’s or lender’s conditions.
When you buy the property, you will be given a contract which outlines these terms.
Many holiday parks limit the number of consecutive days you can live there at 60 days. Others may limit it to 30 days.
Transitioning from holiday home to main home
Holiday lets in holiday parks have non-residential licenses. It’s extremely rare for a holiday park to have a 365 day residential license.
Buy to let mortgages on holiday homes in residential areas can sometimes be changed to residential mortgages. It generally depends on the borrower’s financial situation.
