Quizzes & Puzzles4 mins ago
Buying a static caravan
5 Answers
My parents are due to retire soon and are thinking of buying a static caravan by the sea. Mainly for the summer season. weeks away, weekends etc. They have seen a 3 bedroom caravan, 36 x 12. About 10 years old on a site they like. Just a pool and club house on the site. My question is to any static caravan owners:
1) The caravan is approx £7000.00.
2) the ground rent is £ 1700.00 per year.
3)plus gas and electric.
Any ideas whether this is a reasonable price for both van and ground rent?
Also once the van is over 15 years old, they cannot sell it on the site. If they decided this caravan/site was not for them, say next summer. Would there be any possible way to recoup any of the money they have laid out?
Any answers would be much appreciated. Dont want them wasting their retirement money on anything.
1) The caravan is approx £7000.00.
2) the ground rent is £ 1700.00 per year.
3)plus gas and electric.
Any ideas whether this is a reasonable price for both van and ground rent?
Also once the van is over 15 years old, they cannot sell it on the site. If they decided this caravan/site was not for them, say next summer. Would there be any possible way to recoup any of the money they have laid out?
Any answers would be much appreciated. Dont want them wasting their retirement money on anything.
Answers
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Q1. £7000 seems very reasonable, but depends on condition. 10 years old is not really old, it makes it a 2002 van which I would think is ok.
Q2. Ground rent £1700 per year, depends on the site licence, some holiday sites are licenced for 46 weeks per year, some for only 8 months.
Q3. plus gas and electric is normal, holiday vans are usually bottled gas, and leccy is privately metered.
The price of £7000 can be negotiated, and also your parents can ask for free ground rent for the first year. You can never make money by buying a holiday caravan, it's like a car, they depreciate in value, but there are ways and means of selling when the time comes, also during the time your parents own it they could get some money back by renting out to friends and family when they are not using it. Finally the advantages of being by the sea in their own place and the pleasure they will get can't be put into money. Anyway best of luck with their decision.
Q2. Ground rent £1700 per year, depends on the site licence, some holiday sites are licenced for 46 weeks per year, some for only 8 months.
Q3. plus gas and electric is normal, holiday vans are usually bottled gas, and leccy is privately metered.
The price of £7000 can be negotiated, and also your parents can ask for free ground rent for the first year. You can never make money by buying a holiday caravan, it's like a car, they depreciate in value, but there are ways and means of selling when the time comes, also during the time your parents own it they could get some money back by renting out to friends and family when they are not using it. Finally the advantages of being by the sea in their own place and the pleasure they will get can't be put into money. Anyway best of luck with their decision.
Hi Jonbuy,
I bought a static caravan at Billing Aquadrome few years ago. It seemed like a good idea at the time - but it was one of the worst mistakes I've ever made!
That was £7000 too I remember! The sales staff at the park were as nice as pie before I bought the caravan - but they changed the moment I'd paid! They stopped calling the caravan a 'mobile home' and referred to it disparagingly as 'your caravan'. They had told me that the ground rent was £890 per year, but they didn't tell me it goes up every year - by whatever amount they choose! Shortly after buying the thing I received a letter telling me the ground rent was going up to £1300 for the next year! The letter also told me that the £1300 had to be paid in full within seven days of the date of the letter! If they didn't recieve the money they would start proceedings to remove the caravan from the park within 28 days - for which I would have to pay all the costs! I also found out after I'd bought it that the caravan was 12 years old and would have to be removed from the park in three years time as they didn't have caravans older than 15 years on site. I would have to pay for the caravan to be removed on a flatbed lorry then re-sited wherever I liked! I eventually sold the caravan after a few months - back to the park for £3000! I lost £4000 but I was so glad to get rid of it. Did I feel a chump!
I would warn you about the ground rent especially J. The park can, and will, increase the rent by as much as they like year after year. Your parents will have no option other than to pay. Owners usually have to pay the rent in full rather than over the course of the year. When the caravan is moved the owner is liable for all the removal costs - then where would your parents relocate the caravan? No other park would have it as they all operate the same time constraints. I also seem to recall the park insisted the caravan be insured - but it had to be by their recommended insurer!
My wife and I have stayed on plenty of caravan parks around the country since then. We usually book through Haven, Hoseasons or Park and that's a much better way of enjoying a caravan holiday (although we now stay in apartments or chalets). There's no worry or overheads. When we've spoken to owners on those parks they've mostly had the same tales to tell.
Please tell your parents to be very careful with the sale and contract details. They should establish exactly how much the ground rent increases each year and how much time they have to pay. They may well have to pay the whole amount within a week or so. They should get everything in writing if possible. Also check the insurance details and find out when the caravan is due for removal. Your parents will have to pay the removal costs which will be expensive. They will also have to have somewhere else to plonk their 36' caravan! I hope you or they have a big garden - otherwise the flatbed will be going straight to the local scrappie!
Several years ago my father and his wife bought a caravan on a park in Weymouth. They rented the caravan out through Haven but they only just got their money back every year. Haven insisted on certain H&S standards and various fittings. My father was responsible for any repairs and he was always running down there with a new fire extinguisher, kitchen tools or to repair a door. They eventually sold the thing back to Haven and were as relieved to see theirs go as I was when I sold mine. Speaking to other owners that seems to be a common experience. Your parents won't make money by renting the caravan out - it'll probably cost them money and lots of hassle.
I hope that hasn't worried you J but caravan ownership is a minefield. It's not a money-spinner unless you are a company like Haven. Do have your parents check the groundrent, insurance and removal details more than anything!
Good luck.
I bought a static caravan at Billing Aquadrome few years ago. It seemed like a good idea at the time - but it was one of the worst mistakes I've ever made!
That was £7000 too I remember! The sales staff at the park were as nice as pie before I bought the caravan - but they changed the moment I'd paid! They stopped calling the caravan a 'mobile home' and referred to it disparagingly as 'your caravan'. They had told me that the ground rent was £890 per year, but they didn't tell me it goes up every year - by whatever amount they choose! Shortly after buying the thing I received a letter telling me the ground rent was going up to £1300 for the next year! The letter also told me that the £1300 had to be paid in full within seven days of the date of the letter! If they didn't recieve the money they would start proceedings to remove the caravan from the park within 28 days - for which I would have to pay all the costs! I also found out after I'd bought it that the caravan was 12 years old and would have to be removed from the park in three years time as they didn't have caravans older than 15 years on site. I would have to pay for the caravan to be removed on a flatbed lorry then re-sited wherever I liked! I eventually sold the caravan after a few months - back to the park for £3000! I lost £4000 but I was so glad to get rid of it. Did I feel a chump!
I would warn you about the ground rent especially J. The park can, and will, increase the rent by as much as they like year after year. Your parents will have no option other than to pay. Owners usually have to pay the rent in full rather than over the course of the year. When the caravan is moved the owner is liable for all the removal costs - then where would your parents relocate the caravan? No other park would have it as they all operate the same time constraints. I also seem to recall the park insisted the caravan be insured - but it had to be by their recommended insurer!
My wife and I have stayed on plenty of caravan parks around the country since then. We usually book through Haven, Hoseasons or Park and that's a much better way of enjoying a caravan holiday (although we now stay in apartments or chalets). There's no worry or overheads. When we've spoken to owners on those parks they've mostly had the same tales to tell.
Please tell your parents to be very careful with the sale and contract details. They should establish exactly how much the ground rent increases each year and how much time they have to pay. They may well have to pay the whole amount within a week or so. They should get everything in writing if possible. Also check the insurance details and find out when the caravan is due for removal. Your parents will have to pay the removal costs which will be expensive. They will also have to have somewhere else to plonk their 36' caravan! I hope you or they have a big garden - otherwise the flatbed will be going straight to the local scrappie!
Several years ago my father and his wife bought a caravan on a park in Weymouth. They rented the caravan out through Haven but they only just got their money back every year. Haven insisted on certain H&S standards and various fittings. My father was responsible for any repairs and he was always running down there with a new fire extinguisher, kitchen tools or to repair a door. They eventually sold the thing back to Haven and were as relieved to see theirs go as I was when I sold mine. Speaking to other owners that seems to be a common experience. Your parents won't make money by renting the caravan out - it'll probably cost them money and lots of hassle.
I hope that hasn't worried you J but caravan ownership is a minefield. It's not a money-spinner unless you are a company like Haven. Do have your parents check the groundrent, insurance and removal details more than anything!
Good luck.
I agree with Andyvon. Your parents must be very careful and read all the small print in any contract they sign. Once you've signed and payed over the cash the site owners have got you by the short and curlies.
We purchased a static van on the Welsh coast in 1998. At the time the site rent was £800/year. Six years later it had increased annually to £2000/year. I shudder to think what people a paying each year today. We sold the van back to the site owner rather than pay more, and like Andy lost money but were glad to be rid of it.
You may also find that any repairs needed to the caravan will have to be carried out by the site owner if you can't DIY. They will then probably charge you through the nose for the work.
If your parents pay £7000 for the caravan, then an estimated £10,000(could end up more) for five year's site fee plus any other costs for repairs etc, they could end up paying out up to £20K for five years of holidays. If the site owners allow subletting then you may recoup some of this. Think of the holidays they could have at £4K/year.
We also suffered from the arrival of grandchildren and the need for baby sitting duties meaning we couldn't use the caravan as much as we would have liked. Then, during school holidays our own children wanted to use it for their family holidays.
Pussinboots suggests you parents could ask for a free first year's ground rent. In our experience you got nothing for free.
If possible, get your parents to talk to some of the other caravan owners on the site before committing themselves to anything.
Finally, going to the same place year in year out can get a bit boring after you have visited all the local places of interest. I know some people can put up with this but it's a lot of money to spend if they only sit outside the caravan all day, British weather permitting.
We purchased a static van on the Welsh coast in 1998. At the time the site rent was £800/year. Six years later it had increased annually to £2000/year. I shudder to think what people a paying each year today. We sold the van back to the site owner rather than pay more, and like Andy lost money but were glad to be rid of it.
You may also find that any repairs needed to the caravan will have to be carried out by the site owner if you can't DIY. They will then probably charge you through the nose for the work.
If your parents pay £7000 for the caravan, then an estimated £10,000(could end up more) for five year's site fee plus any other costs for repairs etc, they could end up paying out up to £20K for five years of holidays. If the site owners allow subletting then you may recoup some of this. Think of the holidays they could have at £4K/year.
We also suffered from the arrival of grandchildren and the need for baby sitting duties meaning we couldn't use the caravan as much as we would have liked. Then, during school holidays our own children wanted to use it for their family holidays.
Pussinboots suggests you parents could ask for a free first year's ground rent. In our experience you got nothing for free.
If possible, get your parents to talk to some of the other caravan owners on the site before committing themselves to anything.
Finally, going to the same place year in year out can get a bit boring after you have visited all the local places of interest. I know some people can put up with this but it's a lot of money to spend if they only sit outside the caravan all day, British weather permitting.
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