What if I gift a holiday in my annexe and someone doesn’t leave?

Is it really likely to happen? Sounds like they won't be there too long anyway.

Do a contract with the Charity then there is
1. no relationship with you and the "holiday maker"
2. "Holiday maker" doesn't leave = breach of contract and can evict without any problem
3. Will need to register as a holiday let with the local council and have all the necessary paperwork in place and insurances.

Plenty of holiday lets information on the internet.

Only real problem will be if the person sadly dies in situ and you have another guest arriving the same day.

It sounds like a nice idea but as Judith has pointed out, there are costs to you involved. You will need to ensure you have insurance cover and any mortgage/deed covenance permits short term lets. It won't be long before local authorities impose licensing for short term let's and with that will come a raft of safety requirements. If you do embark on such a jesture, make sure any contract you have with the Charity permits you to drop out at any time. Eviction would be similar process to any short term let or lodger - depending on the contract.

Beware of the council classing it as a 'second home' and imposing double council tax on it.

The guests would have no rights to remain and you could change the locks whilst they're out but as has been said, you'd have all the liability.

Sounds a lovely idea in principle, but could be a legal nightmare.

If as suggested above a contract is created with the charity, you would need to be confident that the contract between the charity and the holiday maker is sound, and provides (amongst other things) that the holiday maker agrees to your house rules, much as an Airbnb contract would, and potentially for the charity to indemnify you against any failings of the holidaymaker. I can’t see any charity agreeing to that as it could be too broad and potentially very expensive.

Without some sort of penalty or indemnity provision you would be dependent on the charity being willing to take steps against the holidaymaker in the event they do not look after or leave the property. Without appropriate safeguards, the property owner is arguably powerless to take action against the holidaymaker in order to remove them from the property as there is no contractual relationship. Even if you could agree such contractual provisions, enforcing them could be another matter.

The alternative, to have a direct contractual relationship with the holiday maker, leaves the owner vulnerable to the holiday maker’s actions and physical condition - who could be at risk of becoming more poorly during their stay. Would the property owner have the heart to turn them out of the property under those circumstances?

Reply to the comment left by Rob Crawford at 02/01/2024 - 11:42
There are already safety requirements, basically same as guest house accommodation e.g. https://assets.publishing.service.gov.uk/media/64257cff2fa8480013ec0fec/A_guide_to_making_your_small_paying-guest-accommodation_safe_from_fire.pdf

The charity is simply a referrer and presumably you will have the option to accept (or reject their referals.

As has been said, this will effectively be a holiday let, so relevant compliance applies.
Your guests will be staying under licence, so you can terminate and recover the property under those provisions.

Given the guests may have more requirements than a regular holiday let guest - mobility, heating, furniture, etc - you should confirm with the charity whether they have anyone else they work with who provides a similar accommodation, so you can find out what they do and any issues they have experienced.

Good luck and best wishes for your generous venture.

Thanks everybody for your very considered replies. I appreciate that.

I have no mortgage, so that’s not something to worry about. It is brand-new and so it will be signed off by the Buildings regulations for safety.

I’m not sure they would be a tenant in any way since I’m not asking for or receiving any money. I am paying utilities and the council tax as appropriate. I am pretty confident the charity will wash its hands of responsibility and so I think the risk is mine.

I think I’m going to try it and see how it goes.

Happy New Year to all. Good luck and good landlording!

Regards, Peter.

Good luck with the venture. One point I can reassure you about is that if you charge nothing at all and word your agreement with the charity or the individuals (as the case may be) carefully then your visitors will unequivocally be guests, not lodgers or tenants, so you can tell them to leave at any time. You don't even have to reclaim possession because you are not giving up legal possession in the first place. If anyone stays longer than their agreement permits and claims that your annexe has become their home they will be a trespasser and, ultimately, you can get a court order to evict them - in such a circumstance you would be committing a criminal offence by forcing them out any other way. The biggest risks when people share accommodation come from the inadvertent creation of tenancies but the binding dicta in the famous case of Street v Mountford are that there are 3 tests for a tenancy: the tenant has (1) exclusive occupation (2) for a term (a stated period of time) (3) at a rent. You are not charging rent so it can't be a tenancy. You are already expecting to spend some money on this charitable activity - if I were you I would spend a little more and get a solicitor to draft an agreement for you to use. A good way of doing this is to start with this service (and ask for Ryan Heaven at Dutton Gregory): https://landlordlaw.co.uk/openaccess_content/the-landlord-law-telephone-advice-service/
I think that if you make this a permanent activity you might need planning permission for change of use. A permanent holiday home for terminally ill people is not really the same thing as an annexe for guests of the ordinary kind. But I don't have time to check the current Use Classes Order to see whether I'm right about that
Another question is whether you would be compromising your right to claim the principal private residence relief from Capital Gains Tax. If no income is received from the activity you may be OK, but you would need a tax specialist to confirm that.
I think your biggest risk is an uninsured loss and if I were to do what you are doing I would want a written assurance from my insurance company's underwriters confirming that cover is not compromised by the activity. I would not be willing to rely on my own interpretation of the policy provisions or a telephone call (or chat session) with the insurance company itself. Only the underwriters can give a binding assurance.