Luxury Lodges - an investment option

If you hear somebody mention a mobile home, or caravan park, I imagine the picture you conjure up is far from the luxurious ilk of luxury lodge developments that are now populating some of the most beautiful parts of the country.

If you dream of a second home but buying abroad is just not your thing, a luxury wooden lodge could be the answer for you.

With prices as much as 50% cheaper than a regular build property, and often situated on developments with a host of fantastic facilities, these lodges can make the ideal base for your own family holiday or quiet get-away, but the rental potential is great, so it may be the ideal Buy-To-Let opportunity. With properties abroad becoming increasingly costly due to the strong Euro rate and increasing mortgage rates, the 7,500 wooden holiday homes currently in the UK are becoming a more and more attractive option. With leasehold prices starting from £60,000, ranging to the £200,000 mark, this is a great alternative.

Of course, if you are looking to invest in one of these properties rather than use it just for your own private use, you will be interested in the rental income potential. Depending on the season and the facilities provided, you can get a weekly rental income from £400-£3,500! Of course, it’s important to check with the site that sub-letting is allowed and you need to be aware that many sites only allow occupancy for 10 or 11 months of the year.

Lodges tend to come with electricity and water facilities in place and include the furniture. There will be extras to pay, such as an annual site fee, and cleaning and maintenance. But with many sites offering on-site restaurants, shops, spa, sports facilities, and swimming pool, your site fee really does pay for itself.

The lodges themselves are a long way from the archetypal image of a traditional mobile home park with rows of white caravans either side of a main track. You are more likely to find these luxurious wooden lodges secreted away amongst leafy glades, or by the lapping waters of a lake. Often with an outdoor deck, high quality interiors, and depending on your budget or requirements, often with a private hot tub on the deck.

So what are the pros and cons…

Pros…

• It’s a cheaper way to have a second home with excellent facilities in a great location
• No flights to book or commission rates on currency to pay
• Rental season of up to 35 weeks. 15 weeks longer than the overseas season
• High weekly rental income potential
• Great bolt hole if you and the property have a free weekend

Cons…

• Lodges can’t be a permanent residence
• Can’t be registered at Land Registry, although have 10 year building guarantee
• some parks have conditions around sub-letting and are only open 10 or 11 months of the year
• You can own up to a 100 year lease, depending what is left on the property, but you do not own the freehold

You can see some examples of luxury lodges by clicking in the following links.

www.tingdene.co.uk

www.lochnesshighlandlodges.co.uk

www.southlakelandparks.co.uk

www.hornseacaravanpark.co.uk

www.shorefield.co.uk

If you own a lodge, or have stayed in one, have any tips or ideas for us, we would love to hear your experiences. Please comment.