Want to turn your leasehold into an Airbnb? It may be against the rules

theguardian.com:

When Anthony Dunkley travelled to Margate in Kent earlier this year, he wanted to buy a property to stay in occasionally and rent out on Airbnb the rest of the time. After making offers on three flats, he encountered the same problem each time: the lease would not allow it.

While estate agents had assured him that he would be able to rent out the properties for days, weekends and weeks at a time, the paperwork said something different.

Like the leases on many homes around the country, restrictions applied on what they could, and could not, be used for. And renting out on a short-term basis was not permitted.

He had come across a problem that many people who own their own home, but rent it out for short periods, may not be aware of.

Leases frequently contain restrictive clauses such as that the property can only be used as a residence for a single family, or that prevent them being let out for periods of less than six months.

And renting them out despite these rules raises the risk of legal action.

“About 75% of the time, I was told that it could be rented out, and after nine weeks of searching we made three offers. Before spending money on solicitors, I asked for a copy of the lease, and each time it was clearly stated that sublets were not allowed,” says Dunkley, an English national who lives in Italy and Portugal.

“The reasons that estate agents would give a ‘yes’ were incorrect. There were things like ‘the person before has been doing it’ and ‘it’s a basement flat, so that’s no problem and it’s got a separate entrance’.

“Those were considered sufficient reasons to believe that it could be put on Airbnb.”

While leaseholders may own their own home or flat, the terms of the agreement they have with the landlord or freeholder will