Buying a Lodge
You've made the decision to buy your lodge or your log cabin and you have chosen the park on which you want to purchase. What are the points you should consider before making that final decision?
In the excitement of making the decision to buy your holiday lodge or log cabin, there maybe some vital questions you have forgotten to ask, or things you have forgotten to check. We have listed a few here and hope they may be useful:
- When does the park open and close?
- Are there any restrictions in place, which govern how long and when you can use your lodge?
- How long is the License or Lease?
- How long has the Park's licence to run, if it isn't a permanent one?
- What is the build specification?
- What warranty is the park offering?
- What is the annual ground rent?
- Do I have to pay a further maintenance charge?
- Do I have to pay Council Tax, or is this included in the rent?
- What facilities are available on the park?
- Are there any further plans for development?
- Are children and pets accepted?
- Is the park a member of the National Caravan Council, the British Holiday & Home Parks Association, or similar professional body?
Before making the final decision, take the time to talk to other lodge owners on the park - are they happy with their purchase? Do the park owners attend to any maintenance and requests quickly and efficiently? Are there any problems on the park they can tell you about before you commit yourself?
Most park owners will tell you that their existing lodge owners are their best selling force, so take advantage of using them!
FINANCING YOUR LODGE
Lodges built to British Standard 3632 and British Standard European Norm 1647 would qualify you to arrange finance with a specialist finance company such as Pegasus Finance.
The lodge would be granted a licensed agreement at the time of sale entitling the lodge to remain on the park for a given period of time, which can be anything from 15 to 125 years. Please ask.
Log cabins built to Building Regulation standard will be granted a lease for a specific period of time, anything up to 125 years and would qualify for a normal second home mortgage.
Do remember when looking at financing the purchase of your lodge, you need to take into account an annual ground rent and possibly an annual maintenance charge and Council Tax.
- New Lodges built to BS3632 - VAT is charged only on the loose furniture and white goods. As from April 2013 VAT will be charged on the total retail price at a rate of 5% of all lodges built to BS EN 1647.
- New Log cabins - VAT is charged on the total retail price.