Caravan site owners

[andysport]

Hi all,

This is probably a unusual one,

 

we bought a small caravan site 12 months ago, 45% of owners were unhappy with ownership and 40% wanted to actively sell their units,

 

during the past 12 months things have changed and only 2 units wish to sell,

they have been up for sale with an estate agent (we don't take commission or any fee at all)

 

one of the units wishes for us to buy back their unit.

we got 2 local dealers to come in and give us a price

both were £24,000 & £25,000

 

this unit was bought 7 years ago for £170,000 it's a holiday unit only,

 

now the owner is saying they will accept £75,000

 

they marketed it at £100k

 

we are struggling to see the value in this unit and what we could do with it.

 

A brand new unit would cost £70,000

 

any suggestions/thoughts ??

 

I'm sure if we bought it at £75k people would think we will have ripped them off,

but we don't actually want it,

we would need to borrow the money

the bank are saying 14.9% so it will cost us £11,250 a year in interest.

Edited October 13, 2013 by andysport

[andysport]

No good just reading it, you need to comment:|

[geoff1248]

No good just reading it, you need to comment:|

In case you hadn't noticed it is the weekend and folks have better things to do than sit by their computers waiting for cries for advice. Help and advice will come but you need to give the experts a bit of time to come online.

[andysport]

sorry, & thanks, I'd seen lots of viewings no replies, I just thought no one could be bothered, yours is a very good point. Thanks

[arglet]

We were chatting in the 'Park Holidays' thread earlier.

 

Just a thought. You say in your 1st post that the unit has been up for sale with an estate agent. Would you be prepared to let the owner continue to advertise that way, and hopefully realise the £75k they are looking for?

 

Perhaps you could charge them a small 'storage' fee while the private sale progresses. That way, the owner would feel that you are helping them, you would not have to find the money to purchase the unit yourself, and when the sale completed you would have new income from the new owners site fees.

 

As I said, just a thought.

 

Tony

Edited October 13, 2013 by arglet

[maroondevo52]

Hi andysport,

 

As geoff1248 has pointed out it can be a bit slow at the weekends, I'm sure you'll get more help over the next couple of days.

 

Regards,

 

Scott.

[andysport]

Comment on another thread mentioning legislation that makes sense.

Arglet, we would prefer they continue to market it privately (just a point we get £100 for a new agreement, That's all we get no commission, no fees) I have painted his window frames, I have tidied up inside a bit (so it looks better) 2 of us have done more than a days work on the garden around their unit, we have made our own sales particulars up and give them to rental guests. This unit doesn't rent out so I don't think it's a financial issue. The storage idea, (on a selfish note I'd be losing money, I'm not completely against it just reluctant) fees are £1800 for a double unit with 1/4 acre average plot, 1/2 mile to the sea, in the south west 12 mins from the motorway. We haven't got any empty plots, we don't own any units. I have spoken to a couple of finance companies they won't lend against these units as the manufacturer no longer exists, so no warranties, and their over 5 years old. So he needs a cash buyer.

Edited October 14, 2013 by andysport

[steampowered]

My initial reaction is that this is not your problem. If the owner wants to sell his unit you can certainly allow him to do that and offer him reasonable assistance to help the sale process. Unless I'm missing something I don't see why you should be taking on debt in order to buy-back the caravan, surely finding a buyer is his responsibility?

[*RainbowTears*]

Im totally in agreement with Steampowered! Ive actually worked as Admin manager on these kind of "Caravan sites" & if an Owner chooses to sell, it is their responsibilty & NOT yours.

 

Owners do have several options;

 

Sell privately (at a realistic price as caravan is not brand new & over 7yrs old)

Sell back to the Site (as above & if you are interested in doing so)

Remove the Caravan from the park (at their own cost etc)

Hand keys in & walk away (this is usually for Owners whose Caravans are dilapidated, too old, in financial difficulties etc)

Or

They could just stay as they are & enjoy it!

 

Me personally in your position, I would not put myself into debt buying a Caravan @ £75.000. Just because the Owner feels its worth this does not mean it actually is, as is proven by the 2 valuations they have had @ £24/25.000!

 

Thats a £50.000 difference & you will be stung big time; as you have said yourself a NEW Caravan can be bought for £70.000!!

 

On that basis alone I would decline to buy & I would continue to help them market the Caravan, if you so wish, but ultimately the decision is theirs!

 

Good luck!

[andysport]

We kind of understood that the BHHA guidelines are that we should offer to buy it back, though with the knowledge of just these few posts we should be offering no more than 25K.

Rainbow tears, thanks your right, removal is not an option stone built skirts, established trees surrounding, we got a quote for removal from a caravan movers whilst they were delivering a new one £4500 to de site and reinstate pitch.

You have given me the wording I needed and confirmed they need to sell it privately.

Thanks

[*RainbowTears*]

We kind of understood that the BHHA guidelines are that we should offer to buy it back, though with the knowledge of just these few posts we should be offering no more than 25K.

Rainbow tears, thanks your right, removal is not an option stone built skirts, established trees surrounding, we got a quote for removal from a caravan movers whilst they were delivering a new one £4500 to de site and reinstate pitch.

You have given me the wording I needed and confirmed they need to sell it privately.

Thanks

 

A guideline is exactly as its stated a "guideline". But your under no obligation to actually make any kind of offer or accept theirs!

 

Im glad I could help you out & your very welcome indeed! Just yell out if you need anything else.

 

Good luck for the future!