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Buying a Static Caravan or Holiday Lodge

Practical guidance on what to check before buying a static caravan or holiday lodge, including park rules, site fees, agreements and ongoing costs.

Before You Buy

Do not make your decision based only on the caravan, its location or the facilities available on the park. Ask to see all relevant documents before committing to the purchase.

These may include:

  • The caravan or lodge purchase agreement
  • The pitch or licence agreement
  • The current park rules
  • A schedule of site fees and other charges
  • Insurance requirements
  • Utility charging arrangements
  • The park opening season
  • Resale and commission arrangements
  • Any finance agreement being used for the purchase

Check the Caravan or Lodge

Make sure you understand exactly what you are purchasing.

  • Make, model, age and specification
  • Overall condition
  • What is included in the purchase price
  • Delivery, siting and connection costs
  • Decking and external works
  • Any age or condition rules operated by the park

Understand the Pitch Agreement

Owning the caravan does not necessarily give you an indefinite right to keep it on the pitch.

  • How long does the agreement last?
  • Can it be renewed?
  • What happens when it expires?
  • Can the terms change on renewal?
  • When can the agreement be terminated?
  • What happens if renewal is refused?

Check the Holiday Park

Find out how the park operates before you commit.

  • Exact park opening dates
  • Holiday or residential use
  • Facilities and services provided
  • Seasonal restrictions
  • Planned development or changes
  • Current park rules

Understand the Full Cost of Ownership

The purchase price is only part of the overall cost.

Annual Site Fees Ask what the current fee is, when it is reviewed and how future increases are calculated.
Electricity, Gas & Water Understand how utilities are measured, billed and what additional charges may apply.
Insurance Check the level of cover required and whether you are free to choose your own insurer.
Additional Charges Ask about administration fees, maintenance charges, drain down, decking, disconnection and removal costs.

Ask About Previous Site Fee Increases

Do not look only at the current year's pitch fee. Ask how the fee has changed over previous years and what the agreement says about future increases.

A history of previous increases can help you understand the likely longer-term cost of keeping your caravan on the park.

Think About Selling Before You Buy

It may seem early to think about selling, but the exit arrangements can be one of the most important parts of the agreement.

Private Sales Check whether you are permitted to advertise and sell the caravan privately.
Park Commission Ask whether commission is payable and how it is calculated.
Buyer Approval Find out whether a buyer must be approved by the park before a sale can proceed.
Removal Costs Ask what charges may apply if the caravan has to be disconnected and removed.

Be Careful With Verbal Promises

If a salesperson tells you something important to your decision, ask for it to be confirmed in writing.

This could include statements about:

  • How long the caravan can remain on the park
  • Future site fee increases
  • Whether you can sell privately
  • Whether the park will buy the caravan back
  • How many months of the year you can use the caravan
  • Whether you will be required to upgrade in future

Read the Agreement Carefully

Your agreement should explain what both you and the park operator are expected to do. Pay particular attention to provisions dealing with:

Site Fees
Licence Length
Renewal
Termination
Resale
Commission
Park Rules
Insurance
Utilities

Terms Worth Looking At Carefully

Take particular care with terms that appear to:

  • Give the park very broad powers to change fees, rules or services
  • Allow important changes without explaining when or why they may be made
  • Impose substantial penalties or additional charges
  • Restrict how or to whom you can sell the caravan
  • Require particular goods or services to be purchased from the park
  • Allow the caravan to be moved without clearly explaining the circumstances
  • Refer to rules or documents you have not been given
  • Impose age or replacement requirements that were not clearly explained before purchase

The presence of a term does not automatically mean that it is unlawful or unenforceable. If an important provision is unclear, consider obtaining independent advice before signing.

Pre-Purchase Checklist

Before paying a deposit, make sure you can answer these questions.

Take Your Time Before Committing

Do not allow excitement about a caravan or pressure to secure a particular pitch to prevent you from checking the agreement properly.

Understand the park. Understand the charges. Understand the agreement. Understand how you can leave.

Thinking About Buying?

If you are considering buying a static caravan or holiday lodge, take time to understand the agreement, charges and restrictions before committing.

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