Ask The Legal Expert: Buying And Selling A Campsite

Buying or selling a campsite represents a significant commercial opportunity, and the transaction comes with many considerations for buyers and sellers. Eleri Roebuck, Director and Joint Head of Commercial Property at JCP Solicitors, explains her top tips for buying and selling a campsite.

For Buyers: Key Legal Considerations

Find the Right Campsite

With the steady interest in staycations and the growing market for international visitors to the UK, campsites offer a strong business investment opportunity. Campsites are often sold as part of a wider enterprise – many include a touring or static caravan park – and so it is important to understand the type of campsite you are buying.

The amount of maintenance required on a ‘wild camping’ set-up compared to a glamping or holiday park will be vastly different, and so it is worth considering what style and pace of business you want to run.

The region may also matter to you: do you want to be coastal? Surrounded by mountains and forests? Do you want to be steadily busy throughout the year, or are you happy with peak summer months and extremely quiet winters? Answering these questions will help to shape your search.

Do Your Market Research

Campsites in Wales and England have remained steadily popular, but the market is relatively constrained. Demand is fairly high compared to the available supply of campsites for sale, so they tend to sell well.

It is important to research the region you are buying in to understand what your potential competitors are doing, if there are any expansion opportunities at your site, and what other investments may be needed.

Understand Site Licenses

Campsites come with site licences, capacity limits, strict compliance, and licence requirements. It is best to consult an experienced Solicitor who can make sure you understand how these site licences would impact the way you may want to run the business. The licence may require updating following completion, and your Solicitor can guide you through this process.

Land And Environmental Constraints

Be sure to conduct land checks to understand your boundary and access rights before buying. There may be Rights of Way crossing the site, easements for utilities and drainage, and different ownership of certain roads, tracks and parking areas.

There may be constraints on the land due to environmental protections, such as areas that must be kept free from camping for flood risk. Check for any protected habitats, trees or conservation designations, and review the requirements for any septic tanks and private drainage on-site.

An experienced Solicitor can guide you through asking the right questions to get the details you need to make an informed decision for the sale.

Do Your Due Diligence

As with any business transaction, buying a campsite requires due diligence to be completed. Review the trade accounts, the occupancy levels over the last few years, ask for details on existing bookings and deposits, and make sure you understand the employee arrangements.

As part of this, consider the health and safety obligations, insurance arrangements, any food hygiene requirements, fire risk assessments and gas and electrical safety checks needed.

For Sellers: Preparing For a Smooth Transaction

Prepare Documentation

To ensure a smooth sale of your campsite, it is important to get your documentation ready as early as possible. Prepare your title documents, planning permissions and building regulation approvals, site licences, compliance certificates, and service contracts. This will make the process quicker and easier as your Solicitor can compile all required documentation at the outset.

Resolve Any Issues

If you are dealing with any boundary disputes, planning irregularities, breaches of licence or outstanding enforcement, resolving these prior to sale will make the process move faster. An experienced Solicitor can support you through any of these issues, making sure you find a resolution so you are ready to put your business on the market with confidence.

Consider Sale Structure

There are different options available to you when it comes to how the sale goes through. Do you want to sell the asset – such as a camping field – or do you want to sell your company as a whole?

If the campsite is held jointly, personally, or through a company, this will also change the structure of the deal. Your Solicitor can guide you through the sale process and explain how the company structure impacts the transaction at each stage.

Employment Options

Campsites tend to have many seasonal workers, and to prepare to sell the business, you should review all existing employment contracts and liabilities. Some employees may be eligible to be transferred to the new owners under the TUPE system (Transfer of Undertakings (Protection of Employment)). A Solicitor can help you understand your employment considerations.

Speaking to a specialist legal advisor will make the process far smoother for both buyers and sellers. Working with legal and financial advice teams who are well versed in the intricacies of buying and selling campsites allows them to guide you through the process with confidence, supporting you to get the best outcome for your business.

For expert legal advice and guidance on buying and selling a campsite, JCP Solicitors can help. Contact Eleri Roebuck, Director and Joint Head of Commercial Property, on 01792 525472 or email eleri.roebuck@jcpsolicitors.co.uk