How Do I Buy a Holiday Chalet?

Given the rise in staycations, more and more people are looking into investing in a holiday chalet. Alongside being a great way to get away, holiday chalets could potentially provide a tempting income.

What is a holiday chalet?

If you’re beginning to think about purchasing a holiday property, it is important to understand the properties you could invest in.

Different countries have different definitions of what a chalet is, but in the UK, a chalet is a small property usually made of brick and/or wood. The chalet would usually feature 1-2 bedroom(s) and would tend to sit in a holiday park.

Some holiday chalets have been used for specialised purposes such as a skiing chalet or for water sport escapes. Consider the limited space you may have, think about what your chalet will offer you and your potential guests.

What are the benefits of buying a holiday chalet?

If you're new to the idea, you may be weighing up the benefits of buying a holiday chalet compared to a traditional property.

Here are some of the pros and cons of holiday chalets based on feedback from experienced owners:

Pros

More affordable to run - Most modern holiday chalets and lodges are more affordable to run due to the fact that they are more eco-friendly.

Affordable maintenance - Due to the materials used to build a holiday chalet, you will find that maintenance is much more affordable than a typical property.

Affordable to purchase - Holiday chalets cost a fraction of what it would cost to buy a traditional property, making them less of a financial burden.

Property location - Holiday chalets are typically located in prime areas with great facilities.

Communal - As holiday chalets are mostly located in communal areas such as holiday parks, there is much greater opportunity to meet new people.

Cons

Letting - Some holiday park homes will not allow you to let out a holiday chalet or lodge. This will restrict you from letting out your property through a holiday letting company such as Sykes Holiday Cottages.

Mortgages - This is a complicated topic when it comes to holiday chalets. If your property is situated on a holiday park, you will not be able to get a traditional mortgage on the property. However, there are certain leasehold agreements that you can go through.

Park closures - If your holiday chalet is located on a holiday park, you may not get access to the property at some points throughout the year.

Spacing and size - Holiday chalets are typically much smaller than traditional properties. This means they can only host a small amount of people at a time.

Property value - The value of a holiday chalet will almost definitely decline as it gets older. Unlike a brick built property, a static caravan or lodge will decrease in value, meaning you will lose your money on the property.

Where to buy your holiday chalet?

If you’re looking to generate a profit when letting a holiday chalet, you will need to consider where is best in terms of location.

Some properties are more in demand than others and can generate more frequent bookings all year round. Aim for properties that have many things to do and see in the area surrounding your property.

With all of this in mind, however, consider competition around your holiday chalet. Is the local area flooded with other holiday chalets to let, or is your chosen area scarce in property lets?

If you’re looking for more guidance, check out our Guide to Buying a Holiday Let.

Mortgages for holiday chalets

Unfortunately, due different opinions on what qualifies as a chalet, there is no definite yes or no answer.

If you're choosing to buy a small holiday park-style lodge, you may find that you will not be able to get a mortgage on this style of property.

Typically, on lodge properties, you will find that you will need to invest the finances for the property yourself.

For bigger style properties that have a more solid structure, you may find that there is more options available for you.

For the best advice, utilise the knowledge and expertise of a mortgage broker. Through a broker, you will be advised on the best mortgages available for you based on your style of property.

You can discover more on how holiday let mortgages work on our blog.