Buying a holiday caravan – your questions answered

Buying a holiday caravan might just be the best decision you ever made. It can be your ‘happy place’, a bolt hole to which to escape to take holidays in the most beautiful parts of the country.

Watch our video that highlights some of the things to consider if you are thinking of buying a holiday caravan, lodge or park home.

Produced bythe British Holiday and Home Parks Association (BH&HPA), it takes you through the legal differences between buying a holiday caravan and a park home, and which agreement you should have in place in order to protect you

Am I looking in the right place?

To get the most out of holiday caravan ownership, many people choose a park location no further than two or three hours’ drive from where they live.

If you want to buy a holiday caravan or lodge to use for holidays you are in the right place.

If you want to buy a park home caravan to live in as your main home please click here. If you are unsure about the difference between the two you can find more information here.

If you are thinking of buying a holiday caravan, here are the answers to some of the questions you may already be asking – and others you might be glad we mentioned!

• What are the benefits of buying a holiday caravan or lodge?
• I have heard some horror stories, what do I need to look out for when buying a holiday caravan or lodge?
• What is the difference between a holiday caravan and a lodge or mobile holiday home?
• Is buying a holiday caravan or lodge a good investment?
• How much should I expect to pay for a holiday caravan or lodge?
• Is it worth buying a second hand caravan?
• What’s the difference between buying a holiday caravan or lodge from a park, or buying it from a private seller?
• What’s included in the price of a holiday caravan/lodge?
• What else should I budget for?
• Where is the best place to buy a holiday caravan?
• How can I tell if the park is right for me?
• When can I use my holiday caravan?
• Can I live in my holiday caravan or lodge?
• What happens if my circumstances change?
• But the sales representative said it’d be ok, and that they’d turn a blind eye…
• I’d like to rent out my holiday caravan. What’s the best way to do this?

What are the benefits of buying a holiday caravan or lodge?

You are buying into a holiday lifestyle enjoyed by many thousands of people who own a holiday caravan or lodge across the UK. You will have a bolthole where you can ‘get away from it all’ on a regular basis and make friends with likeminded people, often in an idyllic rural, coastal or riverside location.

I have heard some horror stories, what do I need to look out for when buying a holiday caravan or lodge?

Buying a caravan is a big financial commitment. It’s important you understand exactly what you are getting for your money and your rights and responsibilities as an owner.

Here is a checklist of what to look for:

1. The caravan seller or park owner should provide you with a contract called a Holiday Caravan Licence Agreement. This will set out the terms and conditions including:

• details of the annual pitch fees (the money you pay each year to keep your caravan on a park)
• how and when those fees will be reviewed
• how long the caravan is allowed to remain on the pitch
• whether you are allowed to sublet the caravan
• whether pets are allowed
• the dates the park is ‘open’ each year and any closed periods
• the process for resolving any complaints.

It’s very important you read and understand the information contained in your Holiday Caravan Licence Agreement before you sign it, or part with any money.

2. Different parks have different terms and conditions, and you need to find one that is right for you.

If you are unsure about anything, take independent legal advice from a solicitor – it will save you money in the long run.

We would not advise going ahead with the purchase of a holiday caravan or lodge until you have been provided with a Holiday Licence Agreement and you read, understand and are happy with its terms and conditions.

3. Holiday Parks require a holiday park Site Licence.

You can check your park has one by contacting your local authority – this information is often available online.

Some holiday parks are licensed as a ‘mixed park’. This means that some people will take holidays on the park, while others live in park homes on residential pitches on the park.

Usually, a mixed park will have separate areas for holidaymakers and residential park home owners.

The local authority will be able to confirm whether a park has a mixed park Site Licence.

If you’re buying a holiday caravan or lodge on a mixed park, it doesn’t mean you can live there. You can only live in a residential park home if the pitch your unit is sited on has residential planning permission and you have an agreement with the park operator called a residential Written Statement.

Some holiday caravans are built to a British Standard called BS3632 which is also applicable to residential park homes. You may see these on holiday parks and on holiday pitches on mixed parks. They are for holiday use only and may not be used as a main residence. You must not buy a residential park home sited on a pitch with holiday caravan planning permission if you are planning to live there.

What is the difference between a holiday caravan and a lodge or mobile holiday home?

Both holiday caravans and lodges are designed and built to be used for holiday and leisure purposes on a licensed holiday park. Holiday lodges are usually built to meet the standards for and legal definition for a caravan. We always recommend checking that your holiday caravan or lodge has been built to an industry recognised standard such as EN1647 or BS3632.

Is buying a holiday caravan or lodge a good investment?

Buying a holiday caravan or lodge is a bit like buying a car. The price will usually depreciate. You are buying into a holiday lifestyle and all the health and leisure benefits that it brings.

How much should I expect to pay for a holiday caravan or lodge?

Prices for a holiday caravan vary up and down the country, and like conventional properties, location is a key factor influencing the cost – together with the range of facilities offered by the park. The price will then also reflect the age and type of holiday caravan or lodge you choose.

Is it worth buying a second hand caravan?

Buying a second hand caravan is like buying a second hand car – it will cost you less than a new model but there are some points to look out for:

• a caravan’s manufacturers’ warranty may have expired on a second hand purchase. If not, it will certainly have less time to run.
• There may be reasonable wear and tear.
• If buying from a private owner, you are unlikely to be protected by the consumer rights which apply to a business sale.

What’s the difference between buying a holiday caravan or lodge from a park, or buying it from a private seller?

In both cases, you are paying for two things:

1. The physical holiday caravan or lodge.
2. The right for you to occupy the pitch on which your holiday caravan or lodge is sited, for a specific period of time. This is referred to as the “Agreement Period” and should be clearly documented in the Holiday Licence Agreement.

• It is important to understand that buying a holiday caravan or lodge is not a “forever purchase”.
• There will always be a limit to the amount of time that a holiday caravan or holiday lodge can be sited on the pitch.
• This amount of time can vary, so it is essential that you check what the limit is before you go ahead with your purchase. This information can be found in the Holiday Licence Agreement.

BH&HPA member holiday parks must offer a minimum term (the “Agreement Period”) of ten years for a brand-new holiday caravan or lodge. This term may be longer, especially if you are buying a holiday lodge.

The term may be shorter if you are buying a second-hand holiday caravan or lodge. You will usually have the right to a new Holiday Licence Agreement for the time which the current Holiday Licence Agreement has left to run. The Holiday Licence Agreement may require the transaction to be dealt with through the park and you may need the park’s approval of you as a new customer/owner. If so, then approval may not be withheld unreasonably.

Finally, if you buy from a park, you will be protected by the consumer rights which apply to a business sale. For example, the holiday caravan or lodge must be of satisfactory quality. If you buy from a private seller, then you will not have the same rights unless both parties agree.

What’s included in the price of a holiday caravan/lodge?

The price will usually include all the carpets, furnishings like beds and sofas, large kitchen appliances such as a fridge, oven and hob and other basic equipment like bathroom fixtures and fittings.

If you’re buying a brand-new caravan, you may be offered other features such as double glazing, upgraded central heating, decking or a hot tub. Confirm all of the details in writing to ensure there are no surprises once you get the keys.

What else should I budget for?

If you are buying a new holiday caravan that isn’t already sited on a park, check if you’ll need to pay for it to be transported to your park from the factory, sited on its pitch, and “commissioned” (made ready for your holidays and connected to the utilities such as water, electricity and sewerage).

Other costs to consider will be the annual pitch fee (what you pay for the right to occupy your pitch on the park), bills for utilities such as water, gas and electricity, and insurance for your holiday caravan or lodge. Again, make sure you confirm details of all the relevant additional costs in writing to ensure there are no surprises later.

We would also recommend paying for some independent legal advice.

Where is the best place to buy a holiday caravan?

That really depends on what you are looking for. Somewhere close you can visit every weekend? Or somewhere a bit further afield in an idyllic location. To get the most out of holiday caravan ownership, many people choose a park location no further than one or two hours’ drive from where they live.

How can I tell if the park is right for me?

Visit several parks to get a feel for what’s on offer. Some may also hire holiday caravans, and you could consider a short break in order to better judge the park and surrounding area. If you wish, ask the park owner to introduce you to some existing owners for an informal chat about their experience.

When can I use my holiday caravan?

It is important to check the months of the year when a park is open for you to use your holiday caravan. Some parks are open all year, but many close for two or three months in winter. This information will be set out in your Holiday Licence Agreement.

Can I live in my holiday caravan or lodge?

No, this is likely to breach the park’s planning permission and Site Licence and therefore be illegal. Your Holiday Licence Agreement will not allow this. You will have no legal rights to live in your holiday caravan.

The park should ask you for proof (at the outset and at regular intervals in the future) that you have a genuine permanent home address elsewhere. A “paper” address is not enough.

The park is required to ensure the holiday caravans are for holiday use only so, for example, you should not work locally and commute from your holiday caravan, register with a local GP or enrol your children into local schools. You should also be registered to vote elsewhere, at your main place of residence.

This important holiday-use-only requirement will be included in your contract with the park and must be respected. If you break this contract term, you will be asked to stop doing so. If you fail to comply, the park would be entitled to terminate the contract and to ask you to remove your holiday caravan. The planning authority could take action against you and the park.

What happens if my circumstances change?

The contract with the park does not allow your holiday caravan to be used as a main residence, even on a temporary basis.

But the sales representative said it’d be ok, and that they’d turn a blind eye…

No, it’s not ok. It is misleading and illegal for a sales representative to tell you that you can live in a holiday caravan or holiday lodge on a licensed holiday park.

If you find yourself in this situation, we recommend that you report the sales representative to the park’s owners and walk away.

I’d like to rent out my holiday caravan. What’s the best way to do this?

Not all parks allow the sub-letting of privately owned holiday caravans. If you want to be able to sub-let your holiday caravan, you should check this with your park BEFORE you commit to the purchase.

If a park does allow sub-letting and you wish to take advantage of that, you should ensure you get an appropriate contract in place. You should also ensure you understand your legal responsibilities when you sub-let.

Thinking of buying a holiday caravan?

Caravan4you is one of the largest and most regularly updated UK websites if you are looking for static caravans for sale in the UK.