Away Resorts UK Holiday Property Investments

UK Holiday Property Investments

Fixed annual return of 7% per annum1

UK holiday property asset purchase

Properties sold with an up to 999 year lease

Mortgageable2

Choice of 3- or 5-year investment term

Handsfree investment

Capital appreciation potential

The UK holiday industry is growing and showing signs of a strong recovery from the disruptions posed by the global pandemic. Research by the World Travel & Tourism Council (WTTC) forecasts that the UK’s travel and tourism sector’s contribution to the economy could rise to £192 billion in 2022. 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 2022 staycation.

Ride the wave of tourism success with Away Resorts’ investment products. A select collection of long lease, holiday properties in some of the UK’s most popular visitor locations. Your property asset can be purchased alongside an investment opportunity that will offer you a 7% fixed NET return1 for 3-5 years and limited personal use; or you can opt for a variable return and the opportunity for greater personal use. Both options are underpinned by an asset purchase that differs from typical resort-based holiday home opportunities, in that it is sold with an up to 999-year lease, can be bought with a mortgage2; plus the properties also have capital appreciation potential. This brochure will provide an overview of the Away Resorts asset purchase and the associated investment opportunity.

About Away Resorts

Away Resorts is a fast-growing UK holiday brand with 23 holiday destinations in the UK ranging from 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 firm - established 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 for an easy and regular escape from day-to-day pressures, but with fantastic letting potential; so, owners have the option to turn their holiday home purchase into an investment product.

Away Resorts’ collection of on resort holiday homes offer a wide selection of options, with a consistent five-star approach at all levels of buying. From vibrant resorts to tranquil retreats buyers can opt for brick built cottages from £155,000 to luxurious, boutique barns at £525,000.

The properties reflect the local surroundings throughout with brick-built cottages set above pretty Colwell Bay and lakeside cottages on offer at the Lakes Rookley, both on the Isle of Wight; and coastal cool, boutique barns at popular Cornwall resort: Retallack Resort & Spa.

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, family-friendly 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 & Spa, The Lakes Rookley and The Bay Colwell. Each property is sold with an up to 999-year leasehold and the properties at Retallack Resort & Spa 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 7% per annum2 . All investment options are subject to the financial status of the applicant and terms and conditions apply.

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 £257b by 2025 (Deloitte ONS)

• The UK’s travel and tourism sector’s contribution to the economy could rise to £192 billion in 2022.

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

• The Staycation Market Report 2021 found that 53% of British people surveyed said they intended to holiday in the UK in 2022.

• Travel Weekly reported that 83% of those who took a staycation in 2021 planned to do so in 2022.

• 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:

• 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, for either the 3 or the 5-year term option, is 7%1 This figure is paid quarterly. 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

• Price from £155,000

• Choice of three locations

• 10 year structural warranty2

• Up to 999-year lease

• Fully furnished and sold with inventory pack included

• 7% fixed net return1 for 3 – 5 years followed by a variable return

• 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 period3

• Pensionable income

• Exit through sale of asset

The great thing about our product is that it works equally well for a qualified individual investor who wants to buy one holiday home or the institutional investor who may buy several. All of the research from highly credible sources is showing that the UK holiday property sector is performing well in a challenging environment and will continue to recover well from the pressures of the pandemic.

Leigh Rice, Sales Director Away Resorts

Managed Letting with Away Resorts

The alternative investment option available to holiday homeowners buying at Retallack Resort & Spa, The Bay Colwell or The Lakes Rookley is the Away Resorts’ Managed Letting service.

Under this scheme the holiday homeowner covers additional costs such as 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.

alarm, carbon monoxide alarm and fire extinguisher

cost with replacements charged as necessary

3 sets of keys

Booking Charges

For each hire a commission charge of 30% 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

• Purchase price from £155,000

• Choice of three locations

• 10-year structural warranty2

• Fully furnished

• Up to 999-year lease

• Income paid monthly

• Unlimited personal use decided by owner

• Purchase of inventory pack required

• 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 & Spa

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 & Spa 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 sunbaking. 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. The new boutique barns, which are mortgageable1, start from £295,000 for a two bed and provide exceptional return for buyers looking to offer up their home whilst they are not in residence or for the investment portfolio buyer.

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 three-bedroom 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 me-time in a quiet cosy corner surrounded by home comforts.

Four Bedroom Roof Terrace Barn

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.

An Island of Opportunity

Surrounded by beaches, the Isle of Wight is one of the most unique holiday destinations available in the UK. The sense of adventure begins on the ferry and with an event calendar packed full of high-profile sporting, music and cultural events such as Cowes Week and the Isle of Wight festival, the Island offers an exclusive retreat with a hint of nostalgia.

Away Resorts offer two property investment locations on the Isle of Wight with a limited number of brick-built cottages available for purchase from just £155,000. At the western tip of the Isle of Wight, you will find The Bay Colwell, home to a collection of premium two-bedroom cottages. This quiet retreat is just a short stroll from the colourful beach huts and sandy shores of Colwell Bay, is super easy for the Lymington ferry and close to Yarmouth’s vibrant boatie scene.

The Lakes Rookley is our all-action resort, nestled at the heart of the island. Within easy reach of the best sights, sounds and tastes that the Isle of Wight can offer, it’s on resort facilities make it ideal for families of all ages and it is convenient for both ferry ports.

Two Bedroom Cottages

Enjoy a comfortable two-bedroom, brick-built, cottage. Sliding doors open out on to a private garden area so you can enjoy an al fresco coffee or evening tipple. With bright modern interiors, a compact and fully equipped kitchen and stylish shower room with waterfall shower head you will have everything you need for a lovely break on the Isle of Wight.

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 or brick-built holiday homes and are available at Retallack Resort & Spa in Cornwall or at The Lakes Rookley and The Bay Colwell on the Isle of Wight.

What preferential tax benefits can I receive1?

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 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.

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.