Inheritance, the farm splitting up, finding a holiday cottage management solution.

[Jimfandango]

The family farm in Cornwall is currently in a state of flux. 25 odd years ago my parents, like many, diversified and converted some of the barns into holiday cottages. In that period the combined business has pretty much run as one. On the passing of my dad, my mum now wants shot of the workload.
I am one of 3 brothers. I run the farm and they will inherit the holiday business and the associated buildings. However, they are not currently prepared to take on the business They have expressed interest but never concrete. I am not sure they will ever be ready, really. I am desperate for the cottages to remain as a holiday business because I really don't want 6 new residential neighbours. I am tempted to take on the work myself but my main motivation would really be to keep it from becoming residential, and I don't think that is enough. I also have my hands full with the farm anyway, having a wife and 2 young children I am trying to make my life simpler not more complicated.
I would ideally like to to find someone, either independent or a reliable small company, who is capable of managing these properties as a going concern. Either with the business paying them a wage or ideally them with some form of rental agreement. This is a ready made business for somebody and must be an attractive proposition but I don't really know how to go about advertising the position or where to look for the people for whom this would be interesting.
Surely this kind of holiday property management is a fairly common occurrence. Has anybody experienced anything similar? Is there anything in my situation I should be mindful of?
Any input will be gratefully received

 

[grainboy]

Families, hey, !!
Your brothers need bringing into line,
Don’t want the hassle now, but will take the financial gain when mother passes,
Sort it out now,

 

[BRB John]

Families, hey, !!
Your brothers need bringing it up line,
Don’t want the hassle now, but will take the financial gain when mother passes,
Sort it out now,

Yeah which suggest they fully intend selling up as soon as they get their grippy hands on it...

Ideally your brother's should be finding a manager to take care of it...

But realistically looks like you'll have 6 new neighbours at some point in the future.... Lucky you

 

[Nearly]

Call Sykes Cottages. Then look around for private cleaners and laundry co's locally.
Sykes will make most other options look cheap but they know their job.

We've 2 with Sykes doing bookings etc and we organise cleaning, laundry and gardens.
15 to 18% plus vat.

 

[David.]

I'm afraid that ultimately you are pushing water uphill.
If Mother is onside, and agrees with your position, sort it yesterday.

 

[L P]

Whatever you do don't carry them and then have them stab you in the back for the pound of flesh when it comes to inheritance. Either they pick their feet up and deal with it or agree the terms now and get it in writing.

 

[Skintagain]

The family farm in Cornwall is currently in a state of flux. 25 odd years ago my parents, like many, diversified and converted some of the barns into holiday cottages. In that period the combined business has pretty much run as one. On the passing of my dad, my mum now wants shot of the workload.
I am one of 3 brothers. I run the farm and they will inherit the holiday business and the associated buildings. However, they are not currently prepared to take on the business They have expressed interest but never concrete. I am not sure they will ever be ready, really. I am desperate for the cottages to remain as a holiday business because I really don't want 6 new residential neighbours. I am tempted to take on the work myself but my main motivation would really be to keep it from becoming residential, and I don't think that is enough. I also have my hands full with the farm anyway, having a wife and 2 young children I am trying to make my life simpler not more complicated.
I would ideally like to to find someone, either independent or a reliable small company, who is capable of managing these properties as a going concern. Either with the business paying them a wage or ideally them with some form of rental agreement. This is a ready made business for somebody and must be an attractive proposition but I don't really know how to go about advertising the position or where to look for the people for whom this would be interesting.
Surely this kind of holiday property management is a fairly common occurrence. Has anybody experienced anything similar? Is there anything in my situation I should be mindful of?
Any input will be gratefully received

Stop

Why would you take on the business when they can’t be bothered?

You will keep it going till it’s worth even more compared to what you can pay out and then it will still end up inevitably sold up by your brothers.

Face the inevitable now and have a square up money wise.

You have already spent a lot of your life running a farm that could potentially be split in three or at least part ruined by six neighbours living in the yard creatin hassle in your workplace. Sit down with your mother and try and work something out

 

[David.]

Trust no-one, the piece of paper is all that counts. You can know someone all your life, and discover that you didn't know them at all.

 

[L P]

Trust no-one, the piece of paper is all that counts. You can know someone all your life, and discover that you didn't know them at all.

Don't, just don't... right in that position atm.

 

[mixedfmr]

Call Sykes Cottages. Then look around for private cleaners and laundry co's locally.
Sykes will make most other options look cheap but they know their job.

We've 2 with Sykes doing bookings etc and we organise cleaning, laundry and gardens.
15 to 18% plus vat.

Thats not so bad a rate, Some on 25% around here, plus cleaner and welcome responsibility
Sykes being going a long while now

 

[Doing it for the kids]

New tax law just come in under labour - factor that in as every holiday let in the uk will be hit

 

[SilliamWhale]

The family farm in Cornwall is currently in a state of flux. 25 odd years ago my parents, like many, diversified and converted some of the barns into holiday cottages. In that period the combined business has pretty much run as one. On the passing of my dad, my mum now wants shot of the workload.
I am one of 3 brothers. I run the farm and they will inherit the holiday business and the associated buildings. However, they are not currently prepared to take on the business They have expressed interest but never concrete. I am not sure they will ever be ready, really. I am desperate for the cottages to remain as a holiday business because I really don't want 6 new residential neighbours. I am tempted to take on the work myself but my main motivation would really be to keep it from becoming residential, and I don't think that is enough. I also have my hands full with the farm anyway, having a wife and 2 young children I am trying to make my life simpler not more complicated.
I would ideally like to to find someone, either independent or a reliable small company, who is capable of managing these properties as a going concern. Either with the business paying them a wage or ideally them with some form of rental agreement. This is a ready made business for somebody and must be an attractive proposition but I don't really know how to go about advertising the position or where to look for the people for whom this would be interesting.
Surely this kind of holiday property management is a fairly common occurrence. Has anybody experienced anything similar? Is there anything in my situation I should be mindful of?
Any input will be gratefully received

When you say inherit the holiday business it will all be liable for iht. I presume 6 are going to worth 250k each at least, probably more.

I've got a few holiday let's and if I had my time again I don't know if I'd bother.

Are they paying the iht?

 

[BRB John]

How hard would it be to relocate the farm steaden's?

 

[lloyd]

Of course it would be interesting to know what the other
two siblings think.

 

[David.]

When you say inherit the holiday business it will all be liable for iht. I presume 6 are going to worth 250k each at least, probably more.

I've got a few holiday let's and if I had my time again I don't know if I'd bother.

Are they paying the iht?

Everyone liable needs to be responsible for their own apportionment of IHT.
Else the cash beneficiaries will get nothing.

 

[Still Farming]

Will they sell to you now??
Plenty of holiday cottages letting agents about and take 20% plus for their trouble and pay you on their owners rates NOT brochure Tourism rates minus vat etc etc so be careful as you most probably know already if done for years.
What's the planning restrictions or covenants on the cottages???

 

[Doing it for the kids]

Now would be a good time to buy given new tax rules

 

[mixedfmr]

Everyone liable needs to be responsible for their own apportionment of IHT.
Else the cash beneficiaries will get nothing.

Cash benificiarie get 3/4 mil plus house and farm pays tax, if its to pay, Because things were set up to benifit THAT person. And trying to change an iron mind is impossible
Something you have to walk away from and live with

 

[mixedfmr]

Now would be a good time to buy given new tax rules

Have to agree, a particular house down 10% near us, would have made a bigger holiday let

 

[pellow]

Hilarious advice recommending to buy, 6 holiday properties are probably worth £2M if they have residential permission, you're going to need to find £160k a year to service the interest on that or £100k just to better than money in the bank. The furnished holiday let job is under serious pressure in Cornwall, there are FHLs near here that haven't even let half their summer this year. It really is a gamble now where its heading

The government is changing tax policy to milk the investment that has been put into FHLs in the last 30 years and encouraging large new corporate holiday sites measuring up to 160 acres down here, probably encouraging the new development as it will generate tax and positive economic numbers from the development and then a tax harvest from the old businesses who will cash up when they're unable to compete with the new holiday offerings

I run 2 FHLs and I would say if we paid for all management and contracted out all linen, garden etc it wouldn't do much better than break even, but if thats your objective then there's nothing wrong with that, we let through Travel Chapter and they are very helpful with advice with management companies, service contracts etc, if you use a letting agency I would throw some ideas around with them.

I know this is obvious but the trouble is with taking on a manager is the profitability of that business is going to be tied to that individual and how well they perform

There are people out there looking for the type of job you are offering, no harm in putting a job ad up and seeing who comes along. A good friend of my partner has just taken on a directly employed management role for a situation similar to yours, she answered a situations wanted ad and has fitted in well