Holiday lodges bring good returns

By Andrea Watson
Posted: 2011/08/26

HOLIDAY lodges bring good returns, says ANDREA WATSON

WITH many Britons choosing to holiday in the UK instead of taking increasingly expensive foreign packages, park homes seem to be proving a rather good investment.

Sharon and Stephen Masters, who bought a holiday lodge in Newton Abbot, Devon, in 2009, say their net yield from this investment last year was nearly 10 per cent. Now they are thinking about buying another.

The Masters were among the first buyers of the Scandinavian A-frame-style homes in Finlake, a park operated by the Haulfryn Group. They paid £150,00 for the superior model home and last year saw an income of £31,000 from the property. They say their profit after expenses was a healthy £15,000.

According to Simon Phillips, general manager of the park, all the lodges have maintained an occupancy rate at or above 80 per cent throughout the economic downturn. In peak season, a three-bed deluxe lodge can be rented for up to £1,695 per week.

Profit He said: "People still want to enjoy their holidays and escape the pressures of daily life while being cost-conscious. Finlake offers an idyllic setting for a luxurious getaway, without the cost of a five-star hotel and the stresses of crowds and airport security."

There are currently 30 lodges available for purchase, with a similar number already sold.

Finlake is offering all buyers of its A-frame lodges a guaranteed six per cent annual return for the first two years. which allows owners to enjoy up to eight weeks in their lodge every year.

However, owners can increase their income by forgoing the eight-week option and letting the property throughout the year.

Mrs Masters said her family has benefited from both the rental income as well as access to their own holiday home.

She said: "It works really well. We spend about four weeks a year there and rent it out the rest of the year. We block off a week in summer to go down with my two boys and our dog and we go every year for the New Year activities which are always fantastic."

Each of the lodges within the 130-acre park comes fully furnished and includes access to all the park's facilities and services.

Superior lodges include additional luxuries such as a second balcony, sauna and under-floor heating while deluxe lodges have a special layout and hot tubs.

The lodges have one, two or three bedrooms and are priced from superior model and from £165,000 £99,000 for the traditional models, from £144,000 for a superior model and from £165,000 for the deluxe version. They are sold with a 99-year lease which is renewed if the lodge is resold. The resale market for this type of lodge is in its infancy as the product is relatively new.

Finlake has a 12-month holiday licence which allows owners to sublet year-round through the park operator's scheme. However, under the holiday licence conditions, it cannot be used as a permanent residence for owners or tenants.

INFORMATION:? 01626 855 242/ www.timberlodge.co.uk

'It works really well. We spend about four weeks a year there and rent it out the rest of the year'