Buy a Caravan

Hi thinking to buy static caravan holiday home?

Hi thinking of buying a static caravan holiday home in Isle of Wight. This is my first experience so don't wont to make any mistakes. I am thinking of renting out the caravan. I would like some advise and what my risks would be. Many thanks

Public Comments

1. This is a minefield and full of pitfalls so BEFORE you sign anything have it checked over by a legal expert. Most likely you will have to buy the caravan from the site owner. Very few will allow you to move an existing caravan to their site and the site rental can be high, £200 per month is not unusual and then you have to pay for your services like electricity, water and Council tax. You pay this every month even though the season may be only eight or nine months long. A large majority of sites close for a few months in winter, usually from about the end of October to about the beginning of March. Usually you can get access to your caravan for maintenance purposes in the winter but that's about it. A very small number stay open all year round. Ask about the age limits of the caravans. Some sites insist on a maximum of ten year old caravans so you will have to remove yours, at your expense, and buy a new one, every ten years and yes you can only buy a new one from the site owner. Most ten year old static caravans have scrap value only. Most sites will allow you to rent out your caravan when you don't need it, the best ones can organise this for you but, you guessed, they charge a commission for this. You will need to ask the site owners for details of this but as far as I know there is nothing to stop you doing this yourself if you wish. Ian
2. Another consideration is insurance. If you're planning on hiring out your holiday home whilst you're not using it, you'll need to make sure that your insurance covers you for hiring out. A lot of insurance companies will cover you for lending the caravan to family and friends, but taking rent off anyone could be classed as hiring, so check with your insurance provider so you know you're covered.
3. Some things to consider... Check if the site allows sub-letting, some don’t. Obvious risk to assess is will it attract holidaymakers? -are other caravans on the site letting, for how much? Will your income cover your expenses? -Don’t forget to factor in wear and tear, things do go wrong with caravans from theft to bursts and leaks. Also bear in mind that there won’t be any capital appreciation from your investment.