Questions About Finance and Costs
Answers to Questions About the Finance and Costs for Buying and Owning a Holiday Home
What are the site fees?
Site fees or pitch fees are an annual fee that holiday parks charge holiday homeowners that have a home on a park. The fees are charged to cover the general maintenance and upkeep of a holiday park, staff wages and other costs such as council tax and other taxes. The fees charged for holiday homes ensure that parks are maintained to a certain level but may not include all costs. On many larger parks for example, there may be additional fees for use of facilities such as swimming pools, gyms, or entertainment passes. These fees are designed to cover the costs of the facilities or entertainment.
Is buying a caravan or lodge a sound investment?
Usually, buying a holiday home or a buying a holiday lodge on a park has not been seen as an investment as they have often been purchased only for private use. In recent years, there has been an explosion in sub-letting a lodge or a static caravan so that they can be used as an asset to generate an income. There are now many web sites where privately owned holiday homes on parks are advertised for holiday rentals. This allows owners to generate income to cover the running costs, purchase costs and generate a profit on their purchase. It also allows owners to effectively have free holidays whenever the holiday home is not booked out.
Is finance available for caravans for sale?
Finance is readily available for caravans for sale on holiday parks. There are specialist lenders for financing holiday home purchases and usually sources of loan finance such as through banks, is often available. In the same manner as when buying a car, it often pays to shop around to find the best finance deal for you. Many holiday parks, often with the larger groups of parks, will have a finance service available to help with your purchase. It is usually a good idea if you need finance to go to the finance market and find out what the best deal is for you and your specific needs.
Do I need a deposit to buy a caravan?
Deposits are usually required to reserve a caravan in the same manner as they are used for purchasing many big-ticket items. A deposit secures the right to buy a holiday home on a park but does not secure ownership of the holiday home. Deposit can be used at Silverbow Country Park to reserve a holiday home with relevant conditions applying.
What are the site fees for a caravan?
Site fees change every year, for the 2023 season at Silverbow Country Park, the site fees are £4715 for a static caravan and £5810 for a holiday lodge. Site fees also include rates, standard site Wifi, water supply and sewerage costs that are paid for by the park directly.
Do the site fees increase?
Site fees increase annually, usually in line with inflation. As costs increase every year in terms of taxes, costs and wage increases, site fees will increase to cover these rising costs.
Are there additional costs to consider?
Direct additional costs for holiday home ownership at Silverbow Country Park include gas and electricity which is invoiced annually. Holiday home insurance is a condition of ownership and is renewable on the first of February each year. Additional costs that you may want to consider involve the general maintenance of your holiday home, paying for replacement parts, cleaning, and adding features to your holiday home such as decorative elements.
Can I sublet to cover additional costs?
You can sub-let your holiday home to cover additional costs and to recoup your initial investment at Silverbow Country Park. Subletting services tend to incur proportionate costs themselves through agencies or specialist web sites. You may also want to consider the cleaning costs or your time if you sub-let plus costs for laundry and replacement of consumables
Do we pay for water, gas, and electricity?
All the holiday homes at Silverbow Country Park are on individual electricity and gas meters (where applicable) so that you only pay for the gas and electricity that you consume. Gas and electricity are invoiced once a year and is charged at the prevailing market rate.
Do I have to pay council tax on my caravan?
If a static caravan is not your main dwelling, as would be the case at Silverbow Country Park, you do not have to pay council tax. This is a tax on your primary dwelling and all owners of caravans at Silverbow must prove that their holiday home is not their private dwelling and thus, you will not be charged council tax.
Is my caravan insured?
All holiday homes must be insured, and proof of insurance must be provided to the park. Currently, Silverbow Country Park will organise insurance for all holiday homes on the park and this will be billed to you on the first of February. It is vital for all owners to arrange holiday home insurance, if you sub-let your holiday home, you will need to arrange for insurance to cover any potential issues during a sub-let.