Willerby Rowan Bespoke
Unless you already have all that money aside, you’re probably wondering ‘can you get a mortgage on a holiday lodge much like you would with a traditional brick-and-mortar home?’
It’s important to understand that, when you make this investment, you’re actually buying a leasehold holiday chalet. That word is exactly what makes it different from other types of second homes.
When you purchase a traditional home, you’re also buying the land it’s on. Your name will be added to the HM Land Registry as a property owner, and if you need a mortgage, it will be secured against such title.
Here’s why the situation is different (and much cheaper) when buying a leasehold holiday chalet: you’re investing in the actual lodge, but the land itself will still belong to the park.
In practice, you’re basically borrowing this land or buying the right to occupy it for a specific amount of time. Usually, that’s up to 125 years .
that's what I found, but your client might have slightly different terms, so I've highlighted it just in case you want to check with them :)
No, you can’t usually get a mortgage on a holiday lodge in a park.
This is mainly because, as we’ve seen, mortgages are based on your title as a property owner in the HM Land Registry, but you don’t buy the actual land when you invest in a holiday chalet.
In the second scenario, your legal document is called ‘site agreement’, and it details for how many years you can use the lodge on that plot of land.
Since your name is not in the HM Land Registry, however, you can’t get a mortgage on a holiday lodge.
There are some extremely rare exceptions that confirm the rule. For example, if a park happens to offer a freehold buying option and sells you the actual plot of land too, or if your lodge is a brick-and-mortar building. Once again, though, these circumstances are already unlikely themselves, and you’re still not guaranteed a mortgage should they present themselves.
We’re sorry if that’s not the answer you were hoping for, but don’t look so upset: just because you can’t get a mortgage on a holiday lodge, it most certainly doesn’t mean that there aren’t any other forms of help with your investment!
Let us tell you about them.
Unless you already have the entire sum in savings, you can simply look at these options:
● Use the equity that you’ve been building up with your current property
● Apply for finance through a private company
The second tends to be the most popular option as an alternative to mortgages.
Just keep in mind that, much like with other types of credits (and mortgages themselves, of course), this will involve some interest rates and, in most cases, a credit check.
At the same time, buying a leasehold holiday chalet is cheaper than a traditional second home, so your finance will be lower than a mortgage.
Now that you have a better understanding of the help that you can get when buying a leasehold holiday chalet, have you considered North Wales?
From never-ending coastlines to a mountainous national park and lots of attractions and picturesque towns, this breathtaking part of the country offers something for everyone.
Buying a leasehold holiday chalet in North Wales means that you’ll have a cosy, familiar base to return to but also that you’ll get to visit new places and try different activities every time.
Our park is located in an idyllic yet strategic setting. You’ll find yourself plunged in nature and right by the estuary whenever you head back to your new lodge. At the same time, you’ll also be only a short drive away from Conwy, the beach, Snowdonia, and many other hidden gems, bustling spots, or tourist destinations.
Have a little virtual tour of our lodges, and get in touch to arrange a viewing so that you can get a feel of the actual park, too.
Even though you can’t get a mortgage on a holiday lodge, you now know that, thanks to those other options, you won’t have to give up on your vacation dream. At Conwy Lodge Park, we can’t wait to turn it into your family’s new reality!