Buying a holiday lodge or caravan has become increasingly attractive over the last few years. Staycations are becoming increasingly popular, and holiday lodges and caravans give holidaymakers the luxury of holidaying wherever they want.
This article provides my 6 top tips to anyone thinking of buying a caravan or holiday lodge.
1. Can you use it as you intend?
Check whether the site is licensed and permitted for holiday use, and what your agreement says about occupancy. If you are looking for somewhere to live permanently, do not assume that a holiday lodge or caravan will meet that need. Ask about limits on stay length, periods when the site closes, and requirements to maintain a main residence elsewhere. Make sure the permitted use matches your plans before paying a deposit.
2. What does the agreement actually give you?
Buying the lodge or caravan is not necessarily the same as buying the land beneath it. Read the agreement to understand your right to keep it on the pitch, how long that right lasts, the charges you must pay and when either party can end the arrangement. Read the site rules alongside the agreement, and ask for any unclear or onerous terms to be explained in writing.
3. Have you checked the site and its permissions?
Check that the proposed use matches the documents supplied. You may also want to ask about site facilities, access, maintenance responsibilities and any planned changes that could affect your enjoyment of the site. Do not rely solely on a sales brochure or verbal assurances.
4. What happens to your deposit?
Before paying, obtain the deposit terms in writing. What happens if your finance falls through, your checks reveal a problem or you decide not to proceed? Keep a record of any promises made about a refund (if any).
5. Can you let the lodge or caravan to others?
If rental income is part of your plan, check whether letting is permitted at all. The agreement or site rules may restrict when and how you can let, require bookings to go through the operator or impose additional charges. Ask for the full terms and likely costs before relying on projected income.
6. How would you sell or leave the site?
Think ahead to the point when you might want to sell. Check whether you can sell the holiday home on its pitch, whether the operator must approve a buyer, whether the operator has a right to buy first and what fees may be payable. Also ask what happens when the agreement ends: could you be required to remove the lodge or caravan, and who would bear that cost?
Before you sign
Seek independent advice. If you would like help reviewing the paperwork for a proposed purchase, please contact me to discuss your plans and request a free quote.