The final stage in buying a static caravan in the UK is signing all the necessary paperwork and this is normally completed at the end of the sales visit to the park. This is also the stage that you will normally complete the finance application if you are using the parks financing options.
Like any financial investment, there are contracts to sign, terms to agree to, and obligations to meet. To make sure you know what you are getting into, we have prepared this informative guide.
We’ll cover the agreements you need to sign, provide you with detailed information on pitch licence durations, and explain what happens during the handover meeting.
Although park operators will have individual procedures and documents we have complied a list of typical agreements that are used in the industry.
Buying A Caravan: The Paperwork
When you purchase your static caravan, you will normally have to sign a Pitch Licence Agreement. Some holiday parks may require that you sign an additional Pitch Improvement Policy if terms covering improvements and ornamentation do not feature in the original purchase agreement. Read all information carefully and receive independent legal advice if you require it.
If you have taken a finance policy through the holiday park, you will also have to sign these upon completing your caravan purchase. Here we’ll provide you with a brief overview of what these documents cover:
Pitch Licence Agreement:
This will include…
• your details as the ‘buyer’
• the park owner details as the ‘seller’
• the caravan details (make, model, type),
• inventory of what’s included with the caravan such as kitchen ware, appliances, steps, and verandas etc
• the purchase price or payment plan if on finance and a comprehensive summery of park costs including site fees.
Pitch Licence Agreement: This document covers essential information such as how long you can keep your caravan on the pitch, your rights to replace it with a newer model, dates of when you can use it each year, and information on hiring it out, both independently and through the holiday park. It may also outline park rules, insurance obligations, and details of any commission payable to the park should you decide to sell your caravan while it is on their pitch.
Caravan Pitch Improvement Policy: Most UK holiday parks require that you sign a pitch improvement policy detailing what you can and cannot do in terms of adding verandas and awnings, installing storage units, landscaping, and ornamentation. As an owner, you are obliged to keep your caravan and pitch clean and well-maintained at all times, and you may need pre-approval for some improvements.
Caravan Finance Agreement: Your financial agreement, if applicable, will outline the terms already agreed with your sales representative. Read the small print to make sure you understand interest rates and any early repayment fees, and only sign if you are 100% satisfied with the terms and conditions of your caravan loan agreement.
How long you can keep your static caravan on the park depends on the duration of your licence.
The majority of pitch licences are 15-20 years in the UK to tie in with the lifespan of a static caravan holiday home. There is sometimes an option to extend this period if the caravan is in good condition depending on the park and the agreement.
Some park agreements do not specify a time scale in years leaving this open-ended but they will have a clause that the caravan must be of acceptable condition.
Your holiday park sales representative will explain this during your site visit, and you'll find details in your pitch licence agreement.
So what happens when you come to the end of your pitch licence? There are several options available.
Many owners choose to upgrade their holiday home before coming to the end of their pitch licence, and in this case, it is a simple change of paperwork.
If you do not wish to move, you can ask your park to extend your pitch licence as mentioned above.
You will also have the option to sell the holiday home to a caravan dealer when it reaches the end of the pitch licence and its lifespan. These companies are able to collect and store caravans and resell them for various uses such as accommodation for people building properties. Remember that caravans at this stage are nearing the end of their life so the value will be lower. Some owners also sell privately or move the static caravan to their home if they have space, but remember you will need to account for transportation cost and ensure the park is kept in the loop.
What To Look Out For In Your Owners Pack
Once you have signed all the relevant paperwork, you will generally receive a Static Caravan Owners Pack from the Holiday Park. The pack will include copies of all your agreements, and a wealth of information such as a list of local contacts, safety and security protocols, a map of the park, opening and closing times of onsite facilities, and details on maintaining your caravan and pitch.
Final Handover With the Caravan Park General Manager
Now that you have completed the sales process, you can look forward to getting your keys and your first holiday in your privately owned static caravan. The park general manager will normally complete the handover if you buy on a larger park by showing you to your new holiday home, handing over the keys, and answering any last-minute questions that you may have. This is great practice as it builds the relationship with them in case you have any issues that need to be dealt with in the future.
The only thing left to do is put the kettle on (or pop open the Champagne!) and enjoy what is likely to be the best lifestyle investment you have ever made.
How Often Will You Be Able To Use It?
How often will you be able to use your static caravan? Weekly? Monthly? Twice per year? To capitalise on your investment, you should be able to use it as often as possible, with some owners suggesting that you should use it at least ten times per year to make it a viable holiday option. Of course, you don’t have to use it yourself; you can give it to friends and family, or even rent it out to cover some of your annual fees. But the whole concept of this type of holiday home is that you use it regularly for weekend breaks, family holidays, or even as your out-of-office office.
Most UK caravan parks are open 8 – 10 months per year, although some operate all year-round which extends your available time, and whilst you cannot live in a static caravan permanently as your primary residence, you can visit it as often as time allows and take extended holidays such as during the summer school holidays. Choosing the right location is essential. If you can access your static caravan in just 1 or 2 hours, you are far more likely to use it than if it is at the other end of the country, so consider this when browsing holiday parks.
Will You Be Able To Share It With Family & Friends Or Rent It Out?
One of the benefits of owning a static caravan is that you can share it with family, friends, loved ones, or even work colleagues when you are not using it. It allows smaller families and support-bubbles to holiday together, couples to escape with their friends and endless opportunities for last-minute breaks. Much of your essentials will already be at the caravan so packing should be a breeze.
If you have a large family and friends’ network, a caravan holiday home could be a perfect investment. If not, you should consider the option of renting it out when you are not using it, either independently or via your holiday park’s rental scheme, to ensure maximum financial returns to offset your running costs.
Many parks will manage the rental processes in return for a commission on the rental charges or you can choose to do this yourself. From our experience managing bookings, key handovers and cleaning can be intensive so consider these options carefully based on your own circumstance.
Also remember subletting reduces your own time using the caravan and can lead to increased wear and tear.
Is It Affordable?
Perhaps the biggest consideration of all is affordability. Most of us love the idea of buying a caravan or holiday home in the UK, but they come at a price, and if you cannot commit to the ongoing running costs, it might not be the right choice for you. When budgeting for a static caravan, you should consider:
• Initial Sales Price: This can be anywhere from £10,000 to £500,000 plus depending on the size and location of your caravan. This can be paid in full from savings or alternatively many owners choose to pay a deposit and then finance the purchase cost paying a monthly payment.
• Annual Site Fees: These range from £2,000 to £10,000 per year, with averages around £3,000 to £5,000. Some parks offer the option to pay side fees via a monthly payment. This payment covers the fee to use the pitch, maintenance and free use of parks facilities for your family and guests.
• Gas & Electricity: Most holiday parks work on meter systems, so you’ll only pay for what you use, but if you intend to stay in your static caravan in winter or over the Christmas and New Year period, you will inevitably have higher heating costs. You will also have to factor in a annual boiler service.
• Rates, Water & Drainage: Influenced by the size, facilities, and location of the holiday park, these fees range between £300 and £1,500 per year.
• Caravan Insurance: Just like your home, you’ll need to insure your static caravan against risks such as fire, theft, and flood damage; this is essential and required by all UK holiday parks. Fully comprehensive caravan insurance packages range from £125 to £475 per year.
• Cleaning: This is an optional service offered by most caravan parks and costs around £25 per clean.
• Winterisation: This is an annual service designed to keep your static caravan in perfect condition throughout winter when your holiday park may close. It includes draining down the water system and reconnecting, and other essential maintenance. Some insurance companies insist you do this, others don’t, so check your policy carefully. It costs around £70 per year.
Have You Weighed Up The Pros & Cons?
Static caravans are a luxury lifestyle investment that allows you to escape everyday life without the hassle of overseas travel. They are suitable for young families, older couples, and everyone in between, and they are ideal for those who love to get away at the weekends and take impromptu trips. But they are not for everyone.
Take time to consider the pros and cons and the advantages and disadvantages of buying a holiday home in the UK before you commit. If you can afford it, use it regularly, and see a future of holidays for you and your loved ones, caravan ownership will add value to your life. If not, explore all options available before committing, and only sign on the dotted line if you are sure that it is the right choice for you.