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PARK HOME CLAIM LIMITED

Selling Your Static Caravan: What to Know First

Selling a static caravan involves more steps than most people expect. Before you accept any offer, you need to know your options, check what your site agreement says, and understand why the price on offer may be lower than the one you paid.

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Selling a static caravan involves more steps than most people expect. Before you accept any offer, you need to know your options, check what your site agreement says, and understand why the price on offer may be lower than the one you paid.

Key point: A static caravan or holiday lodge sits on a licence agreement with the park, not a lease or a freehold. That means the park has a say in how, and sometimes whether, you can sell. Reading your agreement before you do anything else could save you a significant amount of money.

Your Options When You Want to Sell

Most owners have four possible routes. Each one works differently, and the one that suits you will depend on your agreement, the age and condition of your caravan, and how quickly you need to sell.

Sell back to the park

This is the most straightforward route on paper. You approach the park and they make you an offer. The process is quick and you avoid the effort of finding a buyer yourself.

The practical reality is that the park is buying at a wholesale price. They will then sell the caravan on, often at a higher price, so their offer to you will reflect that margin. There is nothing wrong with this arrangement, but it is worth knowing that the first offer is rarely the only offer.

Part exchange

Some parks allow you to trade in your existing caravan against a newer model on the same site. This can feel like a clean solution, but the numbers need careful attention. The trade-in value the park puts on your old caravan and the price they quote for the new one are linked. A generous-looking trade-in figure can be offset by a higher purchase price for the replacement.

The part exchange section below looks at this in more detail.

Sell privately on-site

In theory, finding your own buyer and selling on-site cuts out the middleman. In practice, your agreement may limit or even prevent this. Some agreements require the park's approval of any private buyer. Others require you to pay the park a commission on a private sale. A few do not permit private sales on-site at all.

Check your agreement carefully before you advertise.

Remove the caravan and sell off-site

If you own the caravan outright and your agreement allows removal, you could have it transported off-site and sold separately. This route involves removal costs, transport costs, and the cost of any repairs needed to make it saleable in a different setting. It is also worth knowing that a caravan removed from a holiday park pitch loses the siting that buyers often value, which can affect the price you achieve.

  • Sell back to the park. Who finds the buyer: The park; Speed: Fast; Key consideration: Price reflects wholesale margin
  • Part exchange. Who finds the buyer: The park; Speed: Fast; Key consideration: Check trade-in value against new purchase price
  • Private sale on-site. Who finds the buyer: You; Speed: Variable; Key consideration: Agreement may restrict or charge commission
  • Remove and sell off-site. Who finds the buyer: You; Speed: Slower; Key consideration: Removal and transport costs apply

What Your Agreement May Say About Resale

Your licence agreement with the park is the document that governs what you can and cannot do when you sell. Agreements vary between parks, but there are terms that commonly appear and that owners are sometimes surprised by when the time comes to sell.

Commission on sale

Many agreements include a clause allowing the park to charge a commission if you sell your caravan, whether privately or back to the park. The rate and how it is calculated should be set out in your agreement. If you are not sure whether this applies to you, look for terms such as "assignment fee", "transfer fee", or "commission on resale".

Approval of the buyer

Some agreements give the park the right to approve or refuse a private buyer before a sale can complete. This is sometimes described as the park needing to be satisfied that the buyer meets the site's requirements. In practice, it means you may not be free to sell to whoever makes the best offer.

Age restrictions on the caravan

Parks sometimes have rules about the maximum age of caravans that can remain on a pitch. If your caravan reaches or is approaching that age limit, it may affect both your ability to sell it on-site and the price a buyer is willing to pay. Check your agreement for any age-related clauses.

Who controls the process

In some agreements, the park acts as the sole agent for any resale. This means you may not be permitted to market the caravan yourself or use an outside broker. If this applies to your agreement, the park effectively controls the asking price, the marketing, and the pool of buyers.

Worth checking: If you did not receive a written agreement when you purchased, or if you cannot locate your copy, you can request one from the park in writing. Keeping a record of that request is good practice.

Why the Offer Can Be Lower Than Expected

One of the most common concerns owners raise is that the price they are offered bears little resemblance to the price they paid. There are several reasons for this, and understanding them can help you assess any offer more clearly.

Depreciation

Static caravans and holiday lodges are not property in the legal sense. They do not sit on land you own. They are manufactured goods sited under a licence, and like most manufactured goods, they lose value over time. The rate at which this happens depends on the make, age, and condition of the caravan, as well as demand in the resale market at the time you sell.

The resale market

The price a buyer will pay is shaped by what else is available. If the park has newer models to sell, a second-hand caravan on the same site is competing directly with those. Buyers who are weighing up a used caravan against a new one will factor in the difference in condition, warranty, and any incentives the park offers on new stock.

Condition and age

A caravan that has been well maintained will generally attract a better offer than one that shows signs of wear. Age also matters independently of condition. Some buyers, and some parks, will not consider a caravan beyond a certain age regardless of how well it has been looked after.

Siting costs for the buyer

When someone buys a caravan on-site, they take on the pitch licence and the ongoing costs that come with it. A buyer thinking about what they can afford will factor in those costs when deciding how much to offer for the caravan itself. Higher ongoing costs can suppress the price buyers are willing to pay.

In plain terms: The gap between what you paid and what you are offered is not unusual. It reflects how the holiday caravan market works, not necessarily anything that has gone wrong. Whether the costs and resale position were clearly explained to you at the point of sale is a separate question.

Part Exchange: What You Are Actually Being Offered

Part exchange is presented as a simple swap: hand in your old caravan, pay the difference, and move into a newer model. The reality is that two separate numbers are involved, and both can be adjusted by the park.

How the numbers work

The park sets a trade-in value for your existing caravan and a selling price for the new one. The amount you pay is the difference between the two. A high trade-in figure looks attractive, but if the selling price of the new caravan has also been set higher to compensate, you may end up paying the same amount you would have paid without the trade-in at all.

The only way to assess a part exchange offer properly is to find out:

  • What the new caravan would cost if you were buying it without a trade-in
  • What the park would offer you for your existing caravan if you were selling it outright, with no new purchase involved
  • Whether any finance is being offered on the new caravan, and what the total repayable amount would be

What to ask the park

Before agreeing to a part exchange, ask the park to give you both figures in writing: the standalone selling price of the new caravan and the standalone purchase offer for your existing one. If the park is reluctant to separate the figures, that is worth noting.

You should also ask whether the trade-in value is fixed or whether it could change between the time you agree in principle and the time you sign any paperwork.

Practical tip: Get any offer in writing before you make any decisions. Verbal figures can change, and having a written record protects you if there is a dispute later.

Questions to Ask Before You Accept Anything

Work through these before you sign anything.

About your agreement

  • Does your agreement permit a private sale on-site, or must the sale go through the park?
  • Is there a commission or transfer fee payable on sale, and if so, how is it calculated?
  • Does the park have the right to approve or refuse your buyer?
  • Are there age restrictions on the caravan that could affect the sale?
  • Does your agreement require you to give the park first refusal?

About the offer itself

  • Is the offer in writing, with everything included clearly set out?
  • If it is a part exchange, what are the two figures separately?
  • Is the offer subject to change, and under what circumstances?
  • Are there any deductions the park intends to make, such as for outstanding charges or repairs?

About the process and your own position

  • What happens to your pitch licence once the sale completes?
  • Are there costs you are expected to cover, such as transfer fees or removal costs?
  • Do you have copies of all the documents you signed when you purchased?
  • Were any promises made at the time of purchase about resale value or ease of selling?

Why this matters: Owners who have their paperwork in order and have asked these questions in writing are in a much stronger position if a dispute arises later.

If You Were Told Your Caravan Would Hold Its Value or Be Easy to Sell

Some owners say that when they purchased their caravan, they were given the impression that it would hold its value well, or that selling it on would be straightforward. When the reality turns out to be different, it can feel like a significant disappointment.

It is worth being clear about what this guide can and cannot tell you. Depreciation in the holiday caravan market is normal, and a lower resale value on its own does not mean anything was done wrong. However, the question of what you were told at the point of sale is a separate matter.

If a salesperson made specific representations about resale value, ease of selling, or the process for exiting ownership, and those representations influenced your decision to buy, it may be worth looking at whether the information you were given was accurate and complete.

This is not something to assess on your own. The documents you signed at the time of purchase, any written communications, and any notes you made at the time are all potentially relevant.

If this reflects your experience, Park Home Claim offers a free, no-obligation check. You can share the details of what you were told and have them reviewed without any commitment. Park Home Claim works with independent SRA-regulated solicitors and does not charge for an initial assessment.

Park Home Claim is a claims assistance and document collation business. It is not a law firm and does not provide legal advice. Where a matter requires legal assessment it is referred to independent SRA-regulated solicitors.

Selling a static caravan: common questions

It depends on your licence agreement with the park. Some agreements permit private sales, subject to the park approving the buyer. Others require the sale to go through the park, or allow private sales but charge a commission. Read your agreement before you advertise or approach any buyers.

There is no fixed formula. The value depends on the make, model, age, and condition of the caravan, the demand for second-hand caravans on or near your park, and what the park is prepared to offer. Getting more than one opinion, including from sources outside the park, can help you form a view.

The park cannot prevent you from selling the caravan as an asset. However, if your agreement requires the park's approval of any buyer, or if it restricts private sales on-site, the park can control the process in ways that limit your options.

Only if your agreement says so. Commission clauses are common but not universal. The amount and how it is calculated will vary. Look for terms such as assignment fee, transfer fee, or commission on resale in your agreement.

The pitch licence does not transfer automatically. The buyer will need to enter into their own agreement with the park. The terms of that agreement may differ from yours. This is worth clarifying before you complete any sale.

If there is outstanding finance secured against the caravan, you will need to settle that before or at the point of sale. The finance provider should be contacted early in the process to understand what is owed and how a sale would be handled.

No. The Mobile Homes Act 1983 applies to residential park homes, not to holiday caravans or lodges. A holiday caravan sits on a licence agreement, which is a private contract between you and the park.

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