Questions and Answers

Owner’s Cottages at The Savoy: Outline terms and conditions

Lease terms: 125 years.
Finance: From 2008 maximum loan available circa 70%. We have independent mortgage advisors working closely with us, offering free advice and competitive finance packages.
Ground Rent: Charges average £200 plus VAT per cottage, which is index linked.

There is an annual maintenance charge to ensure The Savoy is kept to the highest standards for Owner's and guests. This is proportionate to size and number of bedrooms, generally £2,115 one bedroom, £2,702.50 two bedroom, £3,290 three bedroom property. The maintenance charge includes Country Club Membership subscriptions for each cottage annually.

Note: Maintenance and service charges include VAT at 17.5%

Q. Are all mains services connected?

A. Each property has its own dedicated water, electricity, gas and television aerial system. There is also a central telephone system to all cottages and facilities.

Q. What does my maintenance charge cover?

A. The maintenance and cleaning of all common access, car parks, grounds and facilities, the upkeep of gardens and landscape, refuse collection from your cottage and village lighting and security.

Q. Is my property insured?

A. Yes, Planning UK Limited has an overall insurance policy for all of the cottages, leisure and Country Club buildings. You will be charged a proportion of the insurance costs for the Cottages each year.
Note: You will have to arrange your own contents insurance for your Cottage Lettings

Q. What level of return can I expect from my Owner's cottage investment?

A. This will depend on how much personal use you have but generally if the cottage is available for the peak periods, a 5% to 7% return could be realised net of all outgoings.

Q. How long can I stay in my cottage?

A. This is a matter for you. However, the cottages cannot be used as your sole and only residence and should not be your permanent home. You should be aware, however, that to qualify as a furnished holiday letting (FHL) under the current tax regulations, you should not reside in the cottage for longer than 5 months in any year and thereafter for periods of longer than 31 days at a time.

Q. How many weeks can I let out my cottage?

A. 52 weeks per annum are available for letting for holiday use.

Q. Can friends and family use my cottage?

A. Yes, your own personal and family use is fine. Please ensure that your personal requirements and guests names are recorded with the letting team. This is required for security and safety reasons. In order to maximise your return if you are investing we would recommend that you make at least 20 weeks available for commercial letting including some peak weeks, in order to qualify for full (FHL) tax relief on your earnings.

Q. Can I let my cottage myself?

A. Only to friends and family. We believe the commercial letting package we manage through Savoy Holidays will offer you the best return available and we would take care of all the details, i.e. advertising, cleaning, inventory checks, key-holding etc. We can also provide guest memberships to facilities of the Country Club.

Q. Are pets allowed?

A. No animals of any sort cannot be permitted. However, guide dogs and certain companion dogs, in appropriate locations on the resort, subject to the approval of the management company.

Other costs:

Q. Are there any other costs associated with cottage ownership?

A. Yes – rates and insurance will be chargeable, however, this will be negotiated centrally and charged on a pro rota basis to ensure you get the best possible price. Electricity, gas, water and telephone charges will be repaid quarterly against your own cottages metered usage only. T.V. License fees will also be proportionately charged.

Furniture:

Q. What furniture packs are available?

A. In order to achieve the four star rating required for The Savoy, Owner's Cottages must comply with the Isle of Wight Tourist Board’s minimum self-catering accommodation standard. The Savoy offers you a complete interior design service, including fully equipping and dressing your cottage to a show home standard. The service is offered at a significant discount to encourage every cottage owner to choose from two spectacular interiors. We also include a standard inventory to ensure equipment replacement is made easy:

• One bedroom: £6,500
• Two bedroom: £11,000
• Three bedroom: £13,000

The actual cost of each package at retail price ranges from £10,000 to £16,000.
Note: See our separate information sheet on the tax treatments for Furnished Holiday Lettings (FHLs).