Holiday park finance
This is holiday letting on steroids!
Are you looking to acquire some land to share in the UK’s growing staycation market? We look at the finance options for purchasing or developing a holiday park site, or caravan site.
As the UK holiday and leisure market continues to evolve, with countless people rediscovering the convenience and entertainment of holidaying in their home country, commercial mortgages for holiday parks and leisure businesses are increasingly relevant.
If you’re a site owner, this is your time to shine, draw in more visitors and make more income. But like anything, seizing and maximising on this chance requires the right funding and support.
We can provide access to holiday park finance experts that can give you the helping hand you need to expand your business, attract even more visitors and benefit from the continued interest in UK holidays.
- What is holiday park finance?
- What can holiday park finance be used for?
- What is a holiday let business?
- What holiday park finance is available?
- Repayment terms
- How a commercial mortgage broker can help
- Get started
- Frequently asked questions
- Holiday let mortgages (new page)
- Holiday let remortgages (new page)
- Mixed-use holiday let (new page)
- Multi-unit holiday let (new page)
What is holiday park finance?
Holiday park finance, also known as a holiday let business mortgage, is a highly specialised type of commercial mortgage used for purchasing or refinancing holiday park sites.
Typically, these freehold pieces of land cover several acres and can host a mix of luxury lodges, static caravans, glamping pods and log cabins.
There are various classifications for these sites based on their design and target market – but most commonly, they are identified as holiday parks, holiday lodge parks, static caravan sites, or log cabin holiday parks.
Investing in a holiday park site can provide a unique opportunity to generate income and build wealth over time. By offering holidaymakers a chance to experience a serene and adventurous getaway in a picturesque setting, you can establish a successful and profitable business venture. But before you can get started, it’s important to make sure that you secure the right financing.
Financing the purchase of a holiday park will require the help of a commercial mortgage broker who is familiar with this sector. This allows you to gain access to the specialist lenders who operate within this space.
Please note that we cannot assist with financing for individual lodges, chalets or cabins.
What can holiday park finance be used for?
Acquiring the right commercial finance is a vital step towards establishing and growing your holiday park business.
Commercial finance can serve various purposes, including providing funds for buying a freehold site, acquiring an already-running holiday park business, carrying out improvements, or expanding the scope of your business.
Here’s a closer look at some of the possibilities.
LAND
Firstly, if you’re just starting, you will need to buy some freehold land to establish your business on. A holiday park commercial mortgage can provide the necessary funds to purchase the land and build your business.
ACQUISITION
Alternatively, if you’re aiming to acquire an already-existing holiday park business and site, commercial funding can make things easier. While you may have the operational expertise and resources to make the business a success, commercial finance can provide you with the funding capacity to acquire the land and the business.
REDEVELOP
If you already have an established holiday park business and wish to improve it, capital raising can be a viable option to pursue. Perhaps you envision your site with a new swimming pool, better restaurant area, new letting units, or upgraded amenities and services. With commercial finance, you can access the necessary capital to carry out such improvements.
EXPAND
Finally, if you have ambitions to expand your holiday park business, a commercial mortgage can help you purchase adjoining land to create more accommodation or parking. By expanding the capacity and facilities of your holiday park, you have the potential to increase your business’s success and increase your profits.
By considering the various ways commercial finance can help you establish, enhance, and grow your holiday park business, you can ensure that you leverage its full potential.
What is a holiday let business?
A holiday let business refers to a trading property business that specialises in providing temporary stays for holidaymakers and guests. But don’t be frightened by the prospect of setting up such a business! The reality is that with the ever-increasing popularity of holiday lets, such a venture can be a profitable one with the right plan in place.
To run a successful holiday let business, it is essential to receive funding from commercial finance providers who are comfortable with the style and basic structure of your holiday park.
The type of property that typically makes for an exciting holiday park experience may vary, but some popular examples may include:
- Holiday parks consisting of chalets or wooden lodges
- Holiday complexes with multiple apartments
- A site which has multiple short-term letting units, forming a small holiday park or complex
- 4 or 5 barn conversions forming a small complex
- 5 or more short-term letting units, along with owners’ accommodation
In order to operate as a holiday letting business, these sites will need appropriate planning permission, which allows short-term and holiday lets. So there you have it – a quick guide to starting your very own holiday let business!
What holiday park finance is available?
When it comes to funding for your holiday park dreams, we’ve got you covered. Whether you’re aiming to purchase a new park outright or expand your existing one, there are a variety of commercial mortgage lenders who understand the unique needs of the leisure industry and are ready to help make your vision a reality.
Don’t worry if you’re new to the holiday park business – lenders are interested in skills that can be carried over to successfully managing a park. With a solid business plan and an impressive CV that highlights transferable skills, your application can be evaluated by underwriting experts who know exactly what it takes to make a park successful.
And the finance options don’t just involve parks – funding is available for site owners like you to also purchase the physical homes and lodges that make up your park.
Let us help you take your holiday park to new heights today!
Do you need an individual holiday let mortgage?
Are you in the market for a holiday cottage mortgage, or perhaps an Airbnb mortgage for your holiday rental property?
We’ve got you covered.
Holiday let mortgages for individual properties with expert advice and support included.
Repayment terms
Loans are typically approved on a repayment basis with terms of up to 25 years.
For start-ups there may be the opportunity to have the first 12-24 months as interest only to assist with cash-flow while your business gets established.
Who can borrow?
- Individuals
- Partnerships
- Limited companies
- SPV companies
Personal guarantees are likely to be requested.
How a commercial mortgage broker can help
When it comes to arranging commercial finance for holiday parks, using an experienced broker can make all the difference.
It’s not quite the same as applying for a mortgage to buy your own home, so having a specialist on hand to help can be a real lifesaver.
Working with a commercial mortgage broker means you’ll have a dedicated team of experts on your side, guiding you through the application process and helping you make the best possible decisions for your business. They have unrestricted access to a whole host of lenders, banks, finance houses and specialist lenders.
Many of the smaller building societies are especially enthusiastic about the hospitality and leisure sectors!
So why use a broker? The simpler answer is, because it works! They have the knowledge, experience and connections to help make your holiday park business more successful than ever.
Get started
Let Respect Mortgages put you in contact with an award winning commercial mortgage broker, who can help you wherever you are in the UK.
Fully FCA regulated, they have more expertise across more lending solutions than any other broker and have specialist teams in place to work with clients through every stage of their journey.
For a free no obligation discussion, please call us on 0330 030 5050 or tap the button below.
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FREQUENTLY ASKED QUESTIONS
Can you get a loan to purchase a holiday site for static caravans?
Yes, you can. Please contact us at 0330 030 5050 to discuss your options.
Are there mortgage options available to purchase land?
There are multiple commercial lenders who are willing to help with purchasing a freehold site, preferably with appropriate planning permission.
Can I obtain funding for land redevelopment if I already own the land?
If you own the freehold to the site and have been granted the appropriate planning permission, obtaining funding for land redevelopment should be straightforward.
What are the most competitive finance options for building an indoor pool?
Swimming pools are expensive and financing options will depend on factors such as the size and type of pool and the location of the property. A commercial mortgage or development finance might be a good options.
Can you borrow to acquire a second site to use as an overspill?
Yes, and this can be a great way of expanding and adding additional amenities or parking.
Can you provide loans to buy a park home or static caravan?
We offer commercial finance to purchase or refinance the entire freehold holiday park site, but unfortunately, we cannot assist with the purchase of individual homes or caravans.
