What is involved in buying a holiday park?
Buying a holiday park can be a shrewd and rewarding investment, but it also requires thorough planning, research, and an understanding of the legal, financial, and operational aspects involved. Here’s our guide to help you through the process:
Types of Holiday Park
There are several different types of holiday park, and it’s important to understand which type you are proposing to buy and whether it suits your business goals:
- Static Caravan Parks
These offer plots for static caravans or holiday lodges, where owners rent or purchase the right to use a pitch.
- Touring Caravan Parks
These parks cater to tourists who bring their own caravans or motorhomes, offering short-term pitches and amenities.
- Camping Parks
These offer tent pitches, but may also accommodate caravans and motorhomes.
- Holiday Parks with Lodges
These are parks offering luxury lodges or cottages for holidaymakers, often as short-term rentals.
Key Considerations Before Buying a Holiday Park
- Research the Market
Is it in the right location? Is there much competition? How many visitors does the area attract?
- Consider the Finances
What are the revenue streams? What are the operating costs? How profitable has the park previously been? Can you add value? Have you got secure funding in place?
- Planning Law
Does the park have the correct planning permissions for its current and intended use? Are the necessary licenses in place for what you plan to do? How will environmental regulations impact your business plans?
Operational Considerations
- Management of the Park
Will you manage the park yourself or hire a management team? What staff will you need?
- Facilities and Amenities
Are the basic amenities (showers, toilets, laundry rooms, and electricity and water hookups) fit for purpose? Are you offering on-site entertainment? Do you plan to providing food and shopping options?
- Regulatory and Compliance Requirements
Does the park meet health and safety standards? Is insurance available to cover all risks? Are you familiar with
employment laws?
- Purchase Price
Have you had a formal and independent valuation? Have you negotiated the best price and terms available?
The legal Process
It’s essential to work with a solicitor who specialises in commercial property transactions. It is advisable to appoint a solicitor who has previous experience of buying a holiday park, and understands the specific regulations and the complex law governing the holiday park sector.
The solicitor will:
- Review the registered title of the land.
- Consider Existing Contracts, including those with holiday home owners, suppliers, and employees ,and advise on your ongoing commitments.
- Check for any ongoing or previous legal disputes involving the park, including any issues with holiday home owners or local authorities.
- Advise on planning issues.
- Establish what equipment and stock are included in the purchase price.
How we can help
If you are buying a holiday park then our specialist solicitors are here to act on your behalf and guide you through the process.
Our team will be happy to discuss your requirements with you and provide a fixed fee quote for dealing with the legal aspects of the transaction.
Call us on 0333 888 0416 for a chat or send an email to info@holidayparksolicitors.co.uk
