No appetite for seconds
FIVE-MINUTE GUIDE TO... HOLIDAY HOMES IN A LOCKDOWN
AS CELEBRITY chef Gordon Ramsay has discovered to his cost, owning a second home or holiday property in the UK is a bit sticky right now.
Owners can upset the locals by using their property as a bolthole during the coronavirus lockdown, but risk invalidating their insurance if they leave it empty for an extended period.
Visiting a second property or holiday home is not considered essential travel, leaving homes empty and at risk of theft or damage.
This is less of a problem for those who have bought unoccupied property insurance, which covers homes regularly left empty for more than 30 consecutive days.
Mark Gordon, chief executive of comparison site Comparebyreview.com, said this protects against threats such as natural damage, escape of water and oil, theft and vandalism, and added: “If you do not have this and your property is now standing empty due to the lockdown, contact your insurer.”
Suzi Rackley, client director at insurance broker Aston Lark, said you normally risk voiding cover if you fail to meet policy conditions on visits, but most insurers are being flexible during the crisis: “This may change if the lockdown stretches into winter, where freezing pipes will be a concern.”
Government advice states that you should be on lockdown in your main home. Rackley added: “This is not the moment to up sticks and move into a second home.”
Balgores Property Group director Martin Gibbon said most insurance policies cover malicious damage if you incur the wrath of locals: “You will have to pay an excess on claims.this is likely to be higher on cheaper policies, so they could be a false economy.”
Andrew Hook, expert plumber at water leaks specialist Hero-labs.com, said if your property is your main source of income, visits may count as travelling to essential work: “Otherwise ask a trusted neighbour to check it for you.”
Empty properties make an easy target for burglars, so keep your security systems activated, such as alarm or automated lights. “Switch off plugs at the wall and unused appliances such as the dishwasher, oven, fridge and microwave,” he added.
Also beware leaks: “Check pipes under the kitchen and bathroom sink, the water heater, under the dishwasher, shower heads, overflow pipes and the loft if you have one.alternatively, switch off your stopcock.”
You could also consider investing in a smart leak detector such as Sonic or Leakbot.
Zena Hanks, partner in the private wealth team at Saffery Champness, said second homeowners who planned to sell before the April 5 tax deadline but were thwarted by the lockdown could end up paying more capital gains tax (CGT) when they do complete: “Tax relief for periods when the property was your main residence has now been reduced, as has lettings relief for any time you rented it out.”
We Buy Any House head of content Holly Herbert warned that selling a property may be tough even after the lockdown is over: “With the country facing a potential recession, house prices may drop in the coming months, but should recover over time.”
However Gibbon said there may be a silver lining: “Due to uncertainty over airlines, more may prefer to buy holiday homes in the UK rather than overseas.”