ESSENTIAL INFORMATION for NEW HOMEOWNERS How long is the lease on my property? The lease on the property is 999 years. What is the potential Rental Income for the property? This will depend entirely on your own personal use and at what time of year you choose to stay in the property. Personal occupation during high season months will have a significant impact on the rental return. The following is a guide of what you can expect to generate in gross rental income: • • • • •
2 Bed Cottage - £24,000 average per year 2 Bed Ground Floor Apartment - £24,000 average per year 2 Bed Penthouse Apartment - £26,000 average per year 3 Bed Cottage - £27,000 average per year 5 Bed Cottage - £34,000 average per year
Can I live in the property as my main residence? Unfortunately not. These are holiday properties and you must have another address that is recorded as your main residence. Is there a service charge? Yes there is an annual service charge that is paid quarterly in advance. As a guide the service charge for the existing cottage properties is circa £2000 per annum. The service charge is reviewed annually and is subject to change. Does the Service Charge include Insurance? No - it is the responsibility of each owner to arrange their own Building and Contents Insurance. Are there any operational costs associated with guest bookings? Yes. Each guest booking incurs a 'stay cost' payable by the homeowner, which covers the servicing of the property and provisions such as linen and essential supplies. Please see below for further information: • • • •
2 Bed Cottage - £142 per booking 2 Bed Apartment (Penthouse & Ground Floor) - £142 per booking 3 Bed Cottage - £162 per booking 5 Bed Cottage - £200 per booking
Can I get a mortgage on the property? As a holiday-restricted property, conventional mortgages are not generally available, but we can introduce you to a Financial Advisor who will assess your personal situation and then advise you on options available to you. How many weeks of the year is the property available for personal use? You can use the property for as many weeks of the year that you choose! How much notice do I have to give if I want to come and use it myself? With the use of the Owners Portal, you can reserve the property for yourself at any time. If your property is not already reserved, you can even arrive on the same day! What is the Management Lettings Agreement (MLA)? The Management lettings agreement, is exclusive to the UK Great Travel Company, trading as Together Travel Co. It covers a charge of 25% plus VAT from the gross rental rate of each booking; and includes the sales, marketing, third party distribution (ie Booking. com, Airbnb) financial management and head office operational management services.
Are there any other fees with each booking? In addition to the MLA charge, there is a cost of stay associated with every booking, that is deducted from your gross revenues. The cost of stay covers all costs associated with servicing a stay, be it for an owner or guest, and includes items such as housekeeping, linen, meet and greet fee and cleaning products and basic guest supplies such as toiletries. Stay costs are reviewed annually and are subject to change. A 5% deduction is made from the gross rental rate of each booking to be held in an FF&E fund (Fixtures, fittings and equipment) to cover the on-going maintenance of the properties. Permission will be sought from the Property owner for any maintenance or purchase in excess of £100. The FF&E reserve fund can be withdrawn by the Owner at any time. In practice this fund would be used to cover the purchase of minor inventory items such as glasses, cutlery or crockery, which we hold on site and replace in between guest stays. What are the Utility Costs involved with Natural Land property ownership? All of the Utility Costs are the responsibility of the owner. These costs will depend entirely on how much the property is occupied, and size of the property, but on average, this is usually about £1,000 per annum. Can I make changes to the furniture/interior design of the property? Yes, but if you want to successfully let the property to holiday guests, the furniture must adhere to the Brand Standards set by Together Travel. Is there any bias between letting Natural Land 3 properties and individually owned properties? Not at all. There is no preference given to Natural Land 3 owned properties over privately owned properties. Together Travel the rental partner receives the same commission from all properties regardless of Ownership. What happens if Natural Land 3 ceases trading? In the very unlikely event that this should happen, there is nothing that can affect your ownership of your property. All owners would collectively need to appoint a new Management Company to arrange for the site management services to be continued. i.e. who cuts the grass and cleans the windows etc. Where can I park in relation to my property and do I own a parking bay? The Plas Parking for The Plas is located on the Upper level of the development and is non-designated. Your lease grants you the right to park. Additional, overflow parking will also be available on the approach. The Cottages Parking for the 2 and 5 bed cottages, will be located to the right of the original courtyard Cottage development, off the main drive.