If you are intending to buy a lodge as a property investment then please read on! The lodges on parks like Limefitt Park are sold by the responsible companies like Southlakeland Parks as a pure ‘leisure investment’. In other words don’t expect the value of the lodge to mirror brick and mortar types of properties.

Looking back over the past three years since the Applethwaite phase was completed the Owners appear to have made a good investment.

1. Right location? Owners purchased a property in a splendid lakeland park. The location is perfect in ever respect if you are intent upon enjoying a Lakeland lifestyle
2. Modern lodges or Cabins? The modern lodges are spacious and full of quality fixtures and fittings. Its home from home!
3. What are the running costs like? The lodges are relatively easy to maintain and with modern gas heating systems also relatively inexpensive to heat.
4. Which type of lodge should I buy? If you can afford a three bedroom lodge then spend the extra cash as the additional room space will be appreciated and also if you decide to rent you can charge significantly more money. The modern two bedroom lodges are spacious but be aware than that some two bedroom lodges are half sized. It’s worth noting that all lodges irrespective of size and number of rooms are charged exactly the same annual maintenance on the Park ( £3500) and general rates ( £451)
5. Renting is an option? If you decide to rent your property then you need to be clear up front about your objectives. Many owners realise from the outset that they cannot visit the park on a regular basis and therefore decide to rent their property in most cases to recover some of the £4000 annual running costs
6. How much can you make from renting? Most owners appear to be renting the key school holiday weeks during the year and ensuring they also reserve a couple of key weeks for themselves. On this basis you can expect to generate via an agent around £10,000 p.a.
7. Will I make money out of renting? Yes but you need to be realistic about the net revenues you will receive and the tax implications. Don’t forget you need to service and personally take time to look after the property.
8. Can you make a profit? If you generate £10k of bookings you can expect to pay a third to your agent to cover commission and cleaning costs. If you deduct you park costs of £4000 and on-going running costs (electricity, repairs etc) then you have about £2k to fund your mortgage costs or take a clear profit!
9. Paying the right price for the lodge? the rental market is growing in the area but there is limit as to what price band people will pay ..it’s around £600 to £750 per week in school holidays for a three bed modern lodge. Therefore, the lodge purchase price needs to be around £150k to £180k if you want to make a half decent return on your investment. My advice is don’t purchase a lodge as a pure buy to let.
10. Have lodge prices increased? Yes! If you look at the price of new lodges on the Kirkstone phase - £160k plus for a two bedroom modern lodge (full sized). The second hand Applethwaite lodges are selling for about 15% higher than the 2004 prices but be careful as comparisons are extremely difficult given the park is still in a development period.