Published: 20th October, 2022
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It is crucial to understand that a holiday lodge cannot be used as a main residence and if ignored, the site owner is able to terminate or end your agreement. A holiday lodge must be used solely for holiday purposes.
As with any purchase, it is prudent to understand what you are purchasing. Essentially you are buying the right to station the holiday lodge on site at a designated plot under an agreement. Understanding the terms and conditions is extremely important.
It is important that the duration of the agreement is clarified and understood at the outset. When advising on agreements, I endeavour to highlight any onerous terms and ask for clarification to be sought from the site owner to ensure that all terms are transparent and understood. This is essential, as breaching these terms may result in the termination of your agreement.
Although there is no guidance on searches to carry out, the service I provided is detailed and thorough and covers all relevant issues. On having searches carried out my clients are provided with extra reassurance in what they are buying. For example, searches included relate to the site licence and planning permission.
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 deposits’ terms and conditions and raising any questions you might have. For example, is the deposit fully refundable?
Some holiday lodges are purchased with the view to 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.
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?
Long term, it is important to also understand the sale process of the holiday lodge purchased. 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.
I hope my tips can assist in your decision to purchase a holiday lodge. Should you need specific legal advice once you have decided to proceed with the purchase, you are invited to contact me to obtain a FREE quote and have a chat about how I can help.
Courtesy Ibraheem Dulmeer at Holiday Park Law
The information provided in this article serves as useful guidance. Please note that this is not intended to be comprehensive and should not be taken in place of specific legal advice. This material should not be replicated without the author’s consent. Ibraheem Dulmeer © 2022
