Caravan park and campsite finance

In England, yes, for up to 60 days in a calendar year with no more than 50 pitches, under a permitted development right in force since July 2023. You must provide toilets and waste disposal on site and tell the local planning authority in writing before you start each year, with a site plan showing those facilities and the dates you will open. Land in Flood Zone 2 or 3 needs prior approval first, and the right does not cover a site of special scientific interest, a scheduled monument or the site of a listed building. Caravans are excluded, apart from motorhomes and campervans. The rule is Class BC in Part 4 of Schedule 2 to the General Permitted Development Order.

Checks before you open

• Flood risk. Look the field up on the government's flood map for planning before you plan dates.
• Facilities. Toilets, waste and drinking water sized for the number of pitches you will take.
• Insurance and access. Public liability cover and safe vehicle access from the road.

Can I get finance to set up a pop up campsite?

Yes, mainly for the equipment rather than the field. Portable toilet and shower units, bell tents, electric hook up points and water supply can often be funded on asset finance, and a farm or landowner with other income can borrow on the strength of the whole business. A site open for 60 days is a seasonal sideline, so lenders look at the rest of the business to support repayments. Our page on farm diversification finance covers wider projects, and Instant Quotes shows which panel lenders may fund the kit, with no credit search.

Yes. A modular or prefabricated block can usually be funded on asset finance over several years, because the unit can be removed and resold, while a block built on site is normally funded with a loan, or a secured facility where the park owns its land. Lenders want the supplier's quote, the groundworks and drainage costs and evidence that pitch income covers the repayments. We arrange this for touring parks, campsites and glamping sites.

Costs to include in the request

• Groundworks. Bases, foundations and any access path, which suppliers often quote separately.
• Drainage. A mains connection or a treatment plant, and checks against the general binding rules for small sewage discharges.
• Power and hot water. Supply capacity for showers and heaters, which can need an upgrade.
• Accessible facilities. An accessible shower room widens who can book.

Should a park choose a modular or built facilities block?

It depends on how long you plan to hold the site and what planning will allow. A modular unit arrives faster and suits modular building finance, which spreads the cost without tying up property as security, while a permanent block usually costs more and becomes part of the property, so it suits a park that owns its freehold. Either may need planning permission and building regulations approval, so speak to the local authority before ordering. Instant Quotes lists panel lenders that may fund the block, without a credit search.

Parks rarely rely on one income stream, and lenders weigh each differently:

• Annual pitch fees from owners of holiday homes and lodges sited on the park. Recurring and invoiced in advance, this is the income lenders value most.
• Holiday home sales. The park buys new or used caravans and lodges and sells them to owners, often with a part-exchange of an older unit. Profit can be large but varies sharply from year to year.
• Touring and tent pitches. Booked nightly, heavily weather-dependent and concentrated in school holidays.
• Park-owned letting units such as caravans, lodges, pods or bell tents let to guests.
• Ancillary income from a shop, bar, café, swimming pool or activities.

A park with a large base of owner pitch fees can usually support more borrowing than a touring site of the same size, because more of its income is contracted before the season starts.

Holding units for sale works much like a dealer's stock; motor trade finance explains how stocking facilities are structured.

Most sites need both planning permission and a site licence from the local council, which sets the number of units, spacing, fire precautions and facilities; GOV.UK explains the caravan site licence. Two conditions shape value more than any other: the permitted opening season and the holiday-occupancy restriction that stops owners living on the park as their main home. A twelve-month holiday season is worth more than a ten-month one, and lenders check that owners are not breaching occupancy conditions, since enforcement can disrupt the park.

Small sites run under an exemption certificate from a recognised camping organisation, and temporary campsites operating for a limited number of days a year under permitted development, have little to lend against on their own; lenders look to the farm or land behind them instead. Infrastructure is the hidden cost of expansion. Hook-ups and lodges need electrical capacity that may require an upgraded network connection, and many rural parks treat their own sewage, which brings the Environment Agency's general binding rules for small sewage discharges or an environmental permit into play.

The most common mistakes are forecasting year-round income on a seasonal licence and underestimating infrastructure costs for new pitches. Holiday home sales are tempting to count on, but they depend on consumer confidence and on buyers obtaining their own finance; a plan that only works with strong sales is fragile. The VAT treatment of holiday caravan sales and pitch fees has its own rules, set out in HMRC's Notice 701/20 on caravans and houseboats, and getting it wrong distorts margins.

Not every project needs debt. Equity from a partner, a joint venture with a lodge or glamping operator, or funding new pitches from the profit on unit sales can all reduce borrowing. Farmers adding pitches as a first venture should read our guide to farm diversification finance, and parks adding activities may find outdoor activity business finance useful.

Holiday park refinance means replacing a park's existing borrowing with a new facility, usually a commercial mortgage secured on the land and buildings. Owners typically refinance for one of five reasons:

• A term is ending or a bank facility is up for review and the existing lender's renewal terms are not competitive.
• Releasing equity to fund new pitches, lodges, facilities or infrastructure without selling part of the park.
• Consolidating several loans, stock lines and asset agreements into a structure that suits the seasons.
• Exiting a bridging loan used to buy at auction or before consents were varied.
• Ownership changes, such as buying out a partner or passing the park to the next generation.

What a refinance lender will revisit

A new lender starts afresh. It instructs its own specialist valuation, so the figure may differ from the one your current lender relied on, and it usually reviews the last two or three seasons of trading split by income stream. Growth in owner pitch fees since the last valuation, a longer permitted season or extra licensed units can all improve terms. Deferred infrastructure work, an ageing owner base or reliance on unit sales may reduce them.

Timing a refinance

Start well before any existing facility expires, because valuation and legal work on a park take time and closed-season accounts are easier for a lender to read once the latest season is reported. Check early repayment charges on the current loan and any stocking finance balances that need to be settled or carried across. Seasonal repayment profiles, which reduce payments in closed months, are worth asking for at this stage.