Buying a Beach Hut?
Beginning life essentially as changing rooms for Victorian beach goers, beach huts have very much become a symbol of the great British sea side. Not at all a glorified shed but a valuable haven for the enjoyment of our beaches not just for the summer but all year round, and undoubtedly locally, high in demand. Head of Office of Savills Canford Cliffs Keith Fensom observes that beach huts are rare to the market and at Savills they hold a list of hopeful purchasers. So what is involved and how do you get one?
One option is to rent from the council. Poole Council re-opened its waiting list for the annual use of its beach huts at the start of 2014 after being closed for 7 years. Open to all Poole council residents, there are 7 lists relating to the different locations, including the prestigious Sandbanks and Canford Cliffs areas. However according to figures on the Poole Council website as at June 2015 the waiting list is up to 20 years for a Sandbanks beach hut. Indeed the council are currently in the process of building 86 new beach huts, due to be completed July 2015. Weekly and daily lets are also available at less of a wait.
The alternative is to purchase. A beach hut is a long term investment and people tend to hold on to them for generations and pass them down to their children and grandchildren. Newspapers and Estate Agency’s are a good start your search and the National Association of Beach Hut Owners can offer advice.
In terms of legalities, in general, beach huts are Leasehold and purchased on a fixed term lease. This means that in addition to the initial purchase price, a yearly license fee, a sort of ground rent, is payable to the land owner. VAT may be payable on the purchase price and will need to be charged when sold. Some are sold with a share of Freehold, such as those at Branksome Chine, one of which was recently marketed by Savills of Canford Cliffs and is currently under offer at £99,000.00. Some Councils like Bournemouth charge a fee being a fixed percentage of the sale price when the beach hut is sold so the sale needs to be structured in a certain way.
In addition to the Licence fee, non-domestic rates apply to beach huts. Under current rules, if you do not own another commercial property you can apply for a reduction in the charges. Regular maintenance is needed and insurance will need to be obtained from a specialist provider, with the majority of claims being made for theft or vandalism. Commonly overnight stays are not permitted, an exception being at the beach huts on Hengistbury Head, hence the disparity in prices, with Beach Huts there selling for over £200,000.00. Despite prices such as these, no lender will generally lend on a beach hut although some interest is now being shown by specialist lenders.
Once you have purchased your beach hut you may be free to change it, as long as you comply with the guidelines for the area, which can run not just to pages but small books! Most will have no running water or electricity and so it is sensible to check whether solar panels will be permitted.
For such an important purchase and one with so many variables it is essential that any prospective beach hut purchaser instructs a specialist solicitor to look over and advise on the lease arrangements so that you are aware of exactly what you are purchasing, and what is and is not permitted.
An abridged version of this article appeared in the Kiteleys July/August newsletter. If you would like to subscribe to our newsletter please contact paula.rose@kiteleys.co.uk