PROPERTY
SECOND HOME By The Sea CONT .
The downsides of having a house by the sea .
If it ’ s a sandy beach then the sand will become your nemesis . Sand gets absolutely everywhere and unlike when you go to visit the beach on a sunny calm day , when you live at your house by the sea for a period of time , you ’ ll likely experience a range of weather . You ’ ll find sand in your ears , hair , mouth , and all over the house , and if you don ’ t get a handle on it , it can really get to you . So you just have to learn the tricks for de-sanding and making sure any guests do the same . A well-placed outdoor shower ( or the more budget version ; an outdoor hose with trigger nozzle ) is key in the fight against gritty floors .
Next is salt . A sea breeze means that salt and sand blasting will accelerate the deterioration of exteriors . Coastal homes have moisture build-up on surfaces and higher salinity in the air , so you will need to take this into account for your maintenance budget . A way of helping to slow down damage is to wash down all external surfaces every 6-12 months ( every three months if you have absolute beach frontage ). Use a soft brush , sugar soap and a low-pressure wash . You should also use premium quality paints in satin or semi-gloss finishes . Salt sticks to low-sheen surfaces . For metal finishes , use a high-grade stainless steel .
What ’ s the average rental income ?
The average price of a ( second ) house in Folkestone is £ 231,708 , with the annual revenue for a second home priced at £ 35,922 . For Ramsgate , the average ( second ) property price comes in slightly under at £ 226,173 . This will generate an annual revenue of £ 24,309 , so on average you will generate £ 28,010 from it in annual revenue .
What are the tax implications ?
Stamp Duty Land Tax , or SDLT , is the main residential tax in the U . K . and is paid at the time of purchase . It ’ s a tiered tax for homes costing more than £ 125,000 . No tax is charged on that initial £ 125,000 , but there ’ s a 2 % tax on the cost of the home from £ 125,001 to £ 250,000 and it goes up from there . The highest rate is 12 %, which is charged on the cost of the property above £ 1.5 million , according to the UK government website .
For those who own more than one property , there is an additional 3 % surcharge . For a luxury home costing more than £ 1.5 million , that brings the rate to 15 %.
However , buyers can get reimbursed for the 3 % surcharge if they sell their first residence within three years of purchasing the second . ( And there have recently been extensions to that timeline due to Covid-19 .)
Be careful about keeping your property empty for too long however . Some councils will charge an added tax to homes left vacant for more than two years .
Owning more than one residence also has implications when the owner goes to sell .
Financial gains on the sale of one ’ s main home are exempt from capital gains taxes as part of the country ’ s private residence relief program . The owner can choose which property should be considered the main dwelling , but he or she will have to pay capital gains taxes on any gains on other residential properties .
ABOVE : POBBLE IN DUNGENESS . DESIGNED BY GUY HOLLAWAY ARCHITECTS
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