What to consider when buying a holiday home

Posted on April 8, 2025

This Easter holiday will see thousands of us trawling websites looking at holiday homes, or returning home after a slice of coastal or countryside living and wanting to pursue the dream and turn it into reality, but what do you need to look out for and how can your solicitor help when considering buying a holiday home?

At Pearson our conveyancing solicitors love completion day, especially when it’s realising a dream come true and getting clients the keys to their holiday homes – one client was lucky enough to grab a slice of coastal life and on moving in day sent us this fabulous picture of his new morning view.

Buying a holiday home

A professional solicitor is crucial when buying a holiday home because they protect your interests and ensure the process is smooth and legally sound.

“Property laws vary by location, whether you're buying domestically or abroad and your solicitor will ensure you comply with all legal requirements,” advises property solicitor, Michelle Ong.

Your solicitor will handle title searches to confirm the seller owns the property and there are no legal issues like disputes or restrictive covenants, and one thing you can rely on with a good solicitor is for them to manage the transfer of funds through a secure process, ensuring you don’t fall victim to scams or fraud.

If you're getting a mortgage, a solicitor ensures the lender’s requirements are met and handles the legal paperwork.

Tax implications of buying holiday home

It is also important to note the main change to holiday let tax rules from 6th April 2025 (1st April 2025 for companies), income and profits from Furnished Holiday Lets are now treated as part of the owner's property business; these are now treated the same as the same as long-term lets when it comes to tax liability.

“We work closely with an experienced team of tax specialists who will be able to advise regarding SDLT implications when buying a holiday home,” said Michelle.

They can also advise on tax implications, including stamp duty, capital gains tax, and potential tax liabilities if renting out the property. For overseas purchases, they help you understand and comply with local tax laws wherever possible or recommend other professionals who can.

They identify potential problems early - like boundary disputes, planning permission issues, or outstanding charges - before they become major headaches.

“If you are buying a caravan, lodge or chalet, on a holiday park there are a host of considerations and things to check over as they do not provide the same protection as residential purchases. It is important to get a written agreement with the site owner, which explains what is included and what your rights are,” warns Michelle.

“From this April some local councils have also raised the bar on council taxes for second home owners, so as in all cases buyer beware and check this out before setting your hopes on a dream holiday home,” she adds.

How can we help?

For legal advice on buying a holiday home, contact our residential conveyancing solicitors on 0161 785 3500 or email enquiries@pearsonlegal.co.uk

Please note that the information and opinions contained in this article are not intended to be comprehensive, nor to provide legal advice. No responsibility for its accuracy or correctness is assumed by Pearson Solicitors and Financial Advisers Ltd or any of its members or employees. Professional legal advice should be obtained before taking, or refraining from taking, any action as a result of this article.