Whilst there is much uncertainty in the air currently in post referendum UK, one thing is certain – the domestic holiday park sector has had a bumper season.
Stephens Scown are currently acting for a number of park operators who are either exiting the sector due to retirement, or are building their portfolios. In the latter case, clients appear to be taking the medium to long term view that the political and economic uncertainty is here for the foreseeable future which, allied to the current weakness of the pound and the turmoil in previously popular foreign holiday destinations all points to the domestic holiday sector continuing to thrive. One client recently commented that “bookings are already up 35% for next year”.
If you are considering a sale in the near future, we recommend gathering together copies of the following to keep in an accessible place as quite often these transactions run under a tight timescale and they will form a fundamental part of the due diligence exercise on a disposal:
- the property title deeds and documents. If title is registered, this will be the Land Registry title information document(s) and title plan(s). These are easily obtainable by the seller’s solicitors at the time of instruction, and need to be up to date copies so that they can be obtained by the seller’s solicitors. In the event the property is unregistered, the title deeds will need to be passed to the seller’s solicitors
- employment contracts
- contracts with suppliers
- Mobile Homes Act agreements (both for owner occupied and vendor owned and let)
- the site licence and conditions of the site licence together with confirmation that the council has no concerns of breaches/enforcement action being taken or threatened
- planning permissions, building regulations consents and any other licences (premises licence(s), Performing Rights Society)
- wayleave agreements
- pitch fee agreements and seasonal touring pitch agreements
- licence agreements or leases of holiday home pitches
- any park rules
- confirmation that any park rules applicable to any home owners with Mobile Homes Act agreements have been lodged with the local authority and when they were lodged
- details of pitch fee arrears
- energy performance certificate(s) and asbestos survey report
- replies to commercial property standard enquiries (not a bad idea to have a set completed and then checked again at the time of sale)
- Environment Agency consent to discharge (if private drainage applies)
- any other supporting documents
Toby Pool is a partner and commercial property specialist at Stephens Scown and a member of the parks team. For further information on selling or purchasing a park, please contact Toby on 01392 210700 or email parks@stephens-scown.co.uk