Published: 29th November, 2024
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Are you thinking of buying a holiday lodge? If you are reading this, chances are probably considering, or already in the process of buying your dream lodge.
This article will provide 10 key points to consider before making that final decision:
A holiday lodge, as the name suggests, is intended for holiday use only and cannot be used as your main residence. If this rule is not followed, the park operator may terminate your agreement. It is essential to remember that the lodge or caravan should be used solely for holiday purposes.
It is common practice to be asked to pay a deposit once you have found your dream holiday lodge. Before paying any sums, I always advise checking the terms and conditions and raising any questions you might have. For example, is the deposit fully refundable? If not, why not?
When you purchase a holiday lodge, you are essentially buying the right to place it on a designated plot at the park under a specific agreement. It’s crucial to understand the terms and conditions of this agreement to avoid any issues.
There are different types of agreements for holiday lodges and log cabins, including licence agreements and leases that are registered with the Land Registry. You need to check the duration of the agreement, which usually range from between 15 years to 125 years.
To ensure you fully understand what you are purchasing, it is prudent to consult a specialist lawyer who can conduct legal due diligence for you.
Understanding the total and future cost of ownership is vital. You need to know not only the purchase price but also any ongoing site fees (and the park operator’s ability to increase these), maintenance costs, and other potential charges.
Again, a specialist lawyer can highlight any onerous terms and ensure that the main terms are highlighted and understood.
Some holiday lodges and log cabins are purchased with the view of subletting. Site operators may have a particular way in which they want this conducted, which is often outlined in the agreement. It is prudent to understand any fees or limitations stipulated in your agreement concerning subletting. The site operator may afford you a separate subletting agreement – have you understood the terms of this?
Long term, it is important to also understand the sale process of the holiday lodge. The agreement, perhaps for example, outlines that the site owner has the right to be offered to buy the holiday lodge as the first point of call before placing it on the open market.
You may wish to consider instructing a surveyor to check various matters, such as the stationing of the Lodge, the internal aspects and utility connections.
A specialist qualified surveyor would be able to assist you with any issues.
It is important to check if there is a warranty on the lodge and what the terms are. It is advisable to ensure that you are aware of any terms that may invalidate the warranty, e.g. would subletting the lodge invalidate the warranty?
You may wish to find out if the park operator is a member of the National Caravan Council or the British Holiday and Home Parks Association – they would have their own code of conduct for their members.
Buying a Lodge is a significant financial commitment. Seeking independent legal advice from a specialist is essential to ensure your experience is positive, informed, and free from unnecessary complications.
Courtesy: Ibraheem Dulmeer at Holiday Park Law
Please note that this article serves as a brief overview and should not be considered comprehensive. If you would like to understand how Ibraheem can help, use the contact information provided above.
Ibraheem Dulmeer © 2024-25
