Your guide to holiday property investment at Retallack Resort, Cornwall

Contents

Retallack Resort Investment FAQs Get in touch 4 7 8 9 10 12 14 18 20

Holiday Home Ownership with Away Resorts

Why invest in UK holiday homes

Benefit from favourable tax regulations

The Away Resorts’ secure investment product

Introduction

The British public have always been a staycation nation with 123 million domestic holidays taken in 2019 over 93 million international holidays. The current cost of living crisis and news of chaotic international travel is likely to strengthen this sentiment and World Travel Market research would appear to support this through showing that about one in six Brits say they plan to book a 2023 staycation.

1The Away investment

is available on selected properties at selected resorts and exclusively to investors, terms and conditions apply. 2If you do not have a mortgage or finance provider, we may be able to introduce you to one. Your capital is at risk and you may not get back the amounts you invest when you come to sell the property. Your property is

ABOUT Away Resorts

Away Resorts is a fast-growing UK holiday brand with holiday parks in Cornwall, the Isle of Wight, Hampshire, Dorset, Essex, Lincolnshire, Yorkshire, Wales and Scotland; plus, an award-winning luxury hotel in Devon.

Privately owned and private equity backed, the company has launched an ambitious programme of acquisition in the UK holiday sector. As of June 2022 the company has acquired 27 locations across the UK, which are benefiting from a major multi-million-pound investment programme, designed to create new vibrant hospitality and leisure facilities, with a stunning range of accommodation options.

Alongside this strong holiday lettings offering, is the continued growth into the holiday home ownership sector, with properties currently available at 19 UK locations and providing a variety of property options from lifestyle choices through to lifestyle investment options and innovative investment portfolio products. Away Resorts is seeking to innovate and disrupt this industry with a clear focus on the guest experience, and the delivery of new and innovative products and services at its resorts.

• Owned by a leading, private equity firmestablished in 1981, CVC is a world leader in private equity and credit, with €123 billion of assets under management, €157 billion of funds committed and a global network of 25 local offices.

• 27 highly sought-after locations

• Aspiration to significantly build upon the existing portfolio in the next two years.

• Actively investing in an ongoing programme of resort developments and improvements.

• FSC Accredited

Holiday Home OWNERSHIP with Away Resorts

Industry research has shown a growth in domestic tourism and an increasing staycation market, but the UK consumer is also seeking high quality accommodation with key features such as hot tubs and outside space drawing higher revenue yields.

Away Resorts have responded to these trends by providing a range of holiday homes to suit those looking to escape to it all, whilst benefiting from the fantastic letting potential; so, owners have the option to turn their holiday home purchase into an investment product.

Resort based properties with their collection of on resort facilities remain popular holiday options throughout the year at sought after UK destinations as they promise easily accessible “whatever the weather” facilities and no fuss, familyfriendly catering options. This combined with a fully operational and busy 12-month season is fantastic for owners using their own holiday home but also

makes their property an attractive proposition as a holiday let. With Away Resorts’ managed letting service and investment buying option, owners are encouraged to take full advantage of this.

Resort based developments have also been welcomed by local communities as they bring a regular tourism spend into the local economy without losing precious local housing stock to holiday letting. Away Resorts has launched a mortgageable1 holiday home option at Retallack Resort. Each property is sold with an up to 999-year leasehold and have a 10 year ICW guarantee. The collection of holiday homes is available for personal use but also offer an attractive UK holiday property asset purchase with an optional fixed return of 10% for the first 3 years and 7% NET return for the following 2 years1 . All investment options are subject to the financial status of the applicant and terms and conditions apply.

1f you do not have a mortgage or finance provider, we may be able to introduce you to one. Your capital is at risk and you may not get back the amounts you invest when you come to sell the property. Your property is at risk of repossession if you do not keep up your payments as they fall due.

WHY INVEST in UK holiday homes?

The residential buy-to-let market has experienced a major downturn in recent years, largely due to tax implications for landlords, prompting investors to seek alternative options. Landlords are now taxed on their revenue, rather than on the profit after mortgage costs. A further change introduced in 2016 prevents landlords from being able to reduce the income tax they pay on rental earnings by 10 per cent for ‘wear and tear’ to their property. Now, only the cost of replacing furniture or building work can be deducted. Add to this the slow-down in the growth of house prices amid the current cost of living crisis and the reasons for the decline of the residential buy-to let market becomes clear.

• Schofields insurance reported that “Increasing numbers of landlords are fleeing the buy-to-let market after their profits were hit by stringent new tax rules.” And stated: “At peak season, a holiday let can earn you as much in a week as you would in a month from buy-to-let. Holiday let landlords can earn up to 30% more yield than their buy-to-let counterparts.”

• “Holiday lets in the UK are becoming increasingly popular, with many areas offering good yields for landlords considering a move away from residential buy-to-let ” (which.co.uk)

• Sam Meadows, Personal Finance Reporter at The Telegraph observed: “Squeezed buy-to-let investors appear to be shifting to holiday lets in pursuit of better returns.”

• “Buy-to-let landlords have been hit with a range of tax measures, which taken together could seriously dent their profits.” ( yourmoney.com)

The UK Tourism & Staycation Economy

• Property Investor Today advised that holiday let owners are looking to benefit from staycation bookings that surpass pre-pandemic levels.

• Tourism market forecast growth 87.5% to £257 billion by 2025 (Deloitte ONS)

• The UK’s travel and tourism sector’s contribution to the economy rose to £131.5 billion in 2022.

• 123 million domestic holidays taken in 2019 over 93 million international holidays.

• Finance News suggest that the Staycation “Boom” is an uptick in a stable domestic tourism industry worth over £1.6 trillion.

Benefit from favourable tax regulations

A furnished holiday let or FHL is a furnished property that is let for short periods. To qualify as a furnished holiday let (FHL) for tax purposes, your property must be available to let for at least 210 days a year and let commercially to the public for at least 105 days in the year. This does not include days you’re staying there or days that your property is let out to family and friends for free or at reduced rates. These criteria are all met though the Away Resorts’ investment buying option and can also be met using our Managed Letting service, depending on how often you opt to use your holiday home yourself.

If you let properties that qualify as Furnished Holiday Lets, subject to certain criteria, you can claim in areas such as:

• Capital Gains Tax Relief for Traders

• Business Asset Rollover Relief

• Entrepreneurs’ Relief

•

Relief for gifts of business assets and relief for loans to traders

You are also entitled to plant and machinery capital allowances for items such as furniture, equipment, and fixtures as the profits count as earnings for pension purposes. A correctly supported claim for capital allowances can mean that a FHL will pay no tax on its rental profits for potentially 4 – 8 years1

We advise you to approach a specialist tax advisor to ensure you can make the most of your investment purchase.

The Away Resorts’ Secure Investment OPPORTUNITY

The Away Resorts’ investment product is underpinned by the purchase of property assets at selected UK resorts within our growing portfolio. All our properties have been created and exist purely to function as Holiday Property Lets (HPL) for consumers who wish to holiday in them. There are a variety of sizes and standards of investment properties available for purchase.

Marketing agreement

Our marketing agreement means that Away Resorts will fully manage the property. Under the terms and conditions of the agreement, for the period of the investment we will take care of:

• The service charge and easement fees

• The appropriate insurance for a holiday buy-to-let property

• Full lettings inventory

• Maintenance and cleaning

• Advertising to win holiday making guests

Terms of payment

The net annual return that is payable to the Investor, 10% for the first 3 years and 7% NET return for the following 2 years. This figure is paid in quarterly installments. At the end of the chosen term, the Investor has the option of switching to a variable annual return. This return is expected to be a minimum of 7% per annum.

At a glance

• 10 year structural warranty 1

• Up to 999-year lease

• Fully furnished and sold with inventory pack included

• 10% fixed new return for the first 3 years and 7% net return for the following 2 years

• Quarterly payments

• 4 weeks personal use (2 weeks must be taken off season)

• No additional charges during your investment period

• Fully managed, armchair investment

• Capital appreciation potential

• Meets qualifying FHL criteria for tax purposes during investment period2

• Pensionable income

• Exit through sale of asset

1only available on our properties at Retallack Resort. 2You should take independent financial advice from a suitably qualified adviser.

MANAGED LETTING with Away Resorts

The alternative investment option available to holiday homeowners buying at Retallack Resort, is the Away Resorts’ a letting service.

Under this scheme the holiday homeowner covers additional costs such as ground rent, service charge, easement fees and insurance but can decide when, and for how long, their property is let, allowing the flexibility to enjoy their lifestyle purchase more often themselves.

Fully furnished, Away Resorts can have newly purchased holiday homes added to their professional, managed letting service as soon as the sale and the relevant paperwork is completed.

The Away Resorts’ managed letting service takes all the hard work out of earning income from a holiday home and helps owners to benefit from Away Resorts’ expertise in the holiday lettings industry. With access to an existing customer base, who return to the resorts year after year, the Away Resorts’ team will ensure each holiday home achieves the best possible return by using the same careful strategies and monitoring that is applied to their own lettings fleet.

From the minute the guest books, everything is taken care of including booking confirmation and relevant pre-arrival information, ensuring that payments are taken as per the booking conditions and followed up if necessary. On arrival the guest will be greeted by a friendly guest services team who will provide them with information on their accommodation and the resort facilities. The guest will have free use of all facilities; and the guest services, housekeeping and maintenance teams will all be on hand should there be any issues with their accommodation or stay. All after care is also provided by Away Resorts and the housekeeping team will carefully prepare the holiday home for its next use.

Away Resorts also provide peace of mind for owners by looking after all the health and safety requirements and legal compliance for owners who use the managed letting scheme, so owners can be safe in the knowledge that their holiday home meets all of the industry safety standards and is able to be let out to the public safely.

The Costs

On becoming part of the managed letting programme, owners need to consider the following initial and annual costs1:

and testing of smoke alarm.

and fire extinguisher

Booking Charges

cost with replacements charged as necessary

5 years, unless otherwise indicated by the qualified electrician.

For each hire a commission charge of 25% plus VAT is made on the gross value of the holiday booked. This includes all cleaning costs. Income is paid to owners on the last day of every month, in arrears.

At a glance

• 10-year structural warranty 2

• Fully furnished

• Up to 999-year lease

• Income paid monthly

• Unlimited personal use decided by owner

• Inventory pack included

• Regular service charge, easement fees

and applicable utility bills payable

• Fully managed letting service

• Capital appreciation potential

• Qualification for FHL criteria for tax purposes not guaranteed3

• Pensionable income

• Exit through sale of asset

Retallack RESORT

Discover Our Cornish Gem

Following sell out success of the Meadows barn development a further sixty-seven boutique barns are being added to our brand-new Hillside development, with stunning countryside views. The new, first-of-their-kind in the UK, boutique barns are set within a tranquil and picturesque location, right in the heart of Cornwall and close to holiday hotspots Padstow and Newquay.

Retallack Resort offers incredible holiday experiences with its exceptional facilities including its outstanding water sporting facilities, Aqua Park and FlowRider, spa, gym, on resort amenities and luxury accommodation. Surrounded by nature and set around the Retallack lake-filled landscape,

the new architecturally designed boutique barns will impress guests with their striking and impressive floor to ceiling glass frontages, letting natural light shine through the contemporary properties and allowing guests enjoyment of the exceptional facilities at Retallack, throughout the year.

The luxurious two- three- and four-bedroom boutique barns all have country views, expansive ground floor decking areas; and the four-bed option boasts a showstopping rooftop terrace for stylish al fresco dinners and a spot of sunbathing. All barns can be sold with a bubbling hot tub, perfect for relaxing and stargazing. Interior design blends natural finishes, soft earthy tones and a calming colour palette which will provide comfort and warmth inside.

Two Bedroom Barn

Bright, spacious and super stylish, The Barns two-bedroom lodge is the perfect holiday escape to share with family and friends. There are two shower rooms including an en-suite to the master bedroom. The airy high-spec, on-trend open plan kitchen, living and dining area opens on to a generous front terrace, ideal for eating and relaxing al fresco, or enjoying the glorious views.

Three Bedroom Barn

Just as stunning as the two bedroom, and with an additional double bedroom and family bathroom. The Barns threebedroom lodge brings something extra to luxury living. The ideal holiday home for larger families and groups, there is lots of space to relax, revive and rewind together, or enjoy some precious metime in a quiet cosy corner surrounded by home comforts.

Four

Introducing our brand new, four-bedroom lodges with an abundance of outdoor living space for you to savour. Step out from your master bedroom to enjoy the morning sunshine and at the end of the day watch the sun dip down from your roof-top terrace. The interiors of this stylish four-bedroom property are second to none including two double bedrooms with decking access, a further double bedroom, twin bedroom, family bathroom and two en-suite shower rooms.

Bedroom Roof Terrace Barn

Investment FAQs

How would my investment be secured?

You will own the property asset with an up to 999-year lease and your ownership will be registered with the UK land registry. The property is sited on a resort which is well maintained and has round the clock security.

How easy is the investment to manage?

This is an armchair style investment meaning that you don’t need to lift a finger. For the length of the investment term, Away Resorts will market and rent out your property, whilst you sit back and get on with your day-to-day life.

What type of properties are available to purchase?

Our investment properties are modular style and are available at Retallack Resort in Cornwall.

How easy is the purchase process?

Purchasing an Away investment property is a thorough process very similar to buying a house. We have a number of buying options so the first step would be to talk to one of our team and arrange a visit to the resort so that you can view the properties and get all the information that you need.

How do I exit the investment?

At the end of your investment term, you will be switched to a variable return which is predicted to be approximately 7% or you are free to sell the property whenever you want, with a small commission being payable to Away Resorts.

Can I use the property myself?

You can use the property for two off season weeks and two peak weeks each year. If you are looking for greater personal use, we can offer the purchase of the same properties with a flexible managed letting service.

What preferential tax benefits can I receive1?

Subject to certain criteria, you may be able to claim in areas such as:

• Capital Gains Tax Relief for Traders

• Business Asset Rollover Relief

• Entrepreneurs’ Relief

• Relief for gifts of business assets and relief for loans to traders

You are also entitled to plant and machinery capital allowances for items such as furniture, equipment, and fixtures, as the profits count as earnings for pension purposes. A correctly supported claim for capital allowances can mean that an FHL will pay no tax on its rental profits for potentially 4 – 8 years.

We advise you to approach a specialist tax advisor to ensure you can make the most of your investment purchase.