The fifty-three properties at Pebble Ridge should be used as second or holiday homes either by the owner, or let to others by the owner. However, importantly, they are permitted for occupation 365 days a year.
Each property will be sold freehold by Pebble Ridge Land Ltd, with each owner having a share of the freehold of the communal areas, which will be maintained through a management company.
Chichester Homes Development Ltd is Pebble Ridge Land Ltd’s preferred contractor to build the holiday homes at Pebble Ridge.
Chichester Homes Development Ltd was founded in 1993 on the simple principle of building quality homes located in desirable location in North Devon.
Over the years, the company has evolved and changed, but this ethos is still at the heart of the business today, and has resulted in it building an enviable reputation in the area.
The company has a strong team of key employees whose task it is to deliver carefully designed, quality homes to suit modern lifestyles. The team take pride in its developments and have maintained an excellent reputation and record with NHBC and LABC.
Your home will come with a two year builder warranty and a further 8 year LABC warranty.
The Buying Process
There are two ways you can purchase your home at Pebbleridge.
Option 1 is the purchase of land and entering into a build contract. This will not be subject to VAT. Stamp duty will be payable on the land value only if it is above the stamp duty threshold. This is the preferred method for most purchasers.
Option 2 is the purchase of a complete new holiday home. This will be subject to VAT at the standard rate and stamp duty at the appropriate rate.
Unlike the purchase of a new home, which is zero rated for VAT, the purchase of a new holiday home (meaning a house that is less than 3 years old and subject to a planning condition that stipulates it is to be used for holiday accommodation only) is treated as the purchase of a new commercial property and therefore subject to VAT at the standard rate, currently 20%. In addition, stamp duty will be payable on the local purchase price, including VAT, at the appropriate rate.
However, the purchase of the freehold of an unserviced building plot is an exempt transaction for VAT purposes and only subject to stamp duty if it is above the stamp duty threshold. The build contract, as it is a new build contract, is zero rated for VAT.
Option 1 - Land and Build Contract
This is the preferred route as your holiday home will not be subject to VAT.
There are three stages to buying your home.
You choose to buy your freehold plot from Pebble Ridge Land Limited, a legal process that is expected to take up to four weeks.
- Stage 2
Once your plot ownership has been secured, you can choose to have your home built by Chichester Home Developments Ltd, as preferred contractor. Assuming you wish to use Chichester Home Developments Ltd, you will enter into a fixed price build agreement that specifies the 'new build' process and specification. This is all clearly documented under a robust agreement and something that your solicitors will manage on your behalf.
- Stage 3
You will be asked to make four stage payments during the build programme: Groundfloor Slab, Roof, Dryline and Completion. Once the property is ready for occupation and payment received in accordance with the build agreement, you will be provided with the relevant build certificates and warranties and your completed house will be handed over to you.
Option 2 - Purchase of a Completed Holiday Home
As noted above, the purchase of a completed holiday home is subject to VAT at the standard rate, currently 20%, and also stamp duty at the appropriate rate. However, there are ways in which the VAT can be recovered if the holiday home is subsequently rented out.
Download this fact sheet from Chartered Accountants, Thomas Westcott, for further information on both Option 1 and Option 2.
The Management Company
It is vital Pebble Ridge is kept looking at its best at all times for the enjoyment and benefit of all owners, but on a cost effective basis.
Each property will be sold freehold, with each owner having a share of the freehold of the communal areas which will be maintained through PRLMC2 Ltd.
The annual service charge is payable by all Pebbleridge home owners, quarterly in advance.
The service charge covers the following:
- Public liability insurance
- Directors and officers insurance
- Ground maintenance and repairs
- Management and accountancy fees
When you are unable to use your holiday home, why not rent it out?
Unlike other holiday homes, there are no restrictions on when the homes at Pebbleridge can be used, allowing 365 days occupancy a year. With 'holidaying at home' and 'mini breaks' becoming more and more popular, there is the opportunity to rent out your home at this increasingly popular holiday destination area.
Further information regarding potential rental income can be provided by Holiday Cottages.
Make managing your property simple
Local company, Coastal Life, provides a comprehensive service to help manage your home at Pebbleridge, including property maintenance and holiday changeovers (e.g. cleaning and linen change).
For further information, visit the Coastal Life website.
Take the stress out of furnishing your holiday home, right down to buying the egg cups!
Contact local interior design company VK Holiday Homes for a comprehensive service.
Complete packages start from £14,995 plus VAT for a three bedroom unit.