Holiday chalet leases

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    Holiday chalet leases

    Hi, i hope this is in the right forum.... my retired parents own a chalet on a chalet park in East Yorkshire, there are 264 chalets on 8 acres of land by the sea... most of the chalets have leases (10 year leases) that run out in Oct 2010 and the landlord is saying that he will not be renewing the leases as he wants all the chalets off the park so he can build holiday flats.... he owns the land and not the chalets, the tenants own the chalets and over the years have invested heavily in them, renovating and furnishing etc......
    What i would like to know is can the landlord actually do this? can he refuse to renew the lease and then demand they remove their chalets from his land? Some of the chalets have been owned by the same people for 30-40 years, surely there must be some law which would prevent him from evicting all these chalet owners, with each chalet being worth on average £20,000 that would mean a total loss of over £5,000,000 for the tenants....

    Any help would be much appreciated and any more info you may require please ask... Thanks: Rabby

    #2
    Anybody?.... i really would appreciate any help on this.......

    Comment


      #3
      sorry Rabby wish I knew in detail. I do suspect that the landowner may have the right to do this. Someone I know had a static caravan on a park and the lease they signed meant that the caravan had to be sold back to the owner who then sold it on (ie you could not sell it to whoever you wanted on the open market). Also all vans had to be within a certain age or be removed. It is not unusual for the owner of such parks to have very strong rights. It all depends on what was signed originally but if you were just "renting" a bit of land for a fixed period the owner is probably entitled to that piece of land back at the end of the period. As for the investment, it is like a tenant doing lots of work to put value into a rented property - the only person who will reap the benefit in the end is the owner of that property. Wish I had better news - perhaps someone else can give a brighter picture.
      Unshackled by the chains of idle vanity, A modest manatee, that's me

      Comment


        #4
        , there are 264 chalets on 8 acres of land by the sea... most of the chalets have leases (10 year leases) that run out in Oct 2010


        It does seem that that the LL is letting people know very early that he is selling up, some would let tenants go on improving and spending money until the last minute, and can you blame the guy for a business decision of this nature?
        I offer no guarantee that anything I say is correct. wysiwyg

        Comment


          #5
          So you don't think there would be any sitting tenant rights for the owners that have been there for 30 years or more?...

          Comment


            #6
            Originally posted by Rabby38 View Post
            Hi, i hope this is in the right forum.... my retired parents own a chalet on a chalet park in East Yorkshire, there are 264 chalets on 8 acres of land by the sea... most of the chalets have leases (10 year leases) that run out in Oct 2010 and the landlord is saying that he will not be renewing the leases as he wants all the chalets off the park so he can build holiday flats.... he owns the land and not the chalets, the tenants own the chalets and over the years have invested heavily in them, renovating and furnishing etc......
            What i would like to know is can the landlord actually do this? can he refuse to renew the lease and then demand they remove their chalets from his land? Some of the chalets have been owned by the same people for 30-40 years, surely there must be some law which would prevent him from evicting all these chalet owners, with each chalet being worth on average £20,000 that would mean a total loss of over £5,000,000 for the tenants....

            Any help would be much appreciated and any more info you may require please ask... Thanks: Rabby
            1. Who built/owns/maintains the chalet building: L or T?
            2. What sort of lease does T have?
            3. Did T pay a purchase price (premium) for the lease?
            4. Does T pay ground rent, rack rent, or neither?
            5. Is chalet only a holiday home or for permanent residence?
            JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
            1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
            2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
            3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
            4. *- Contact info: click on my name (blue-highlight link).

            Comment


              #7
              Originally posted by jeffrey View Post
              1. Who built/owns/maintains the chalet building: L or T?
              Tenants own the chalets and are responsible for maintenance, i'm not sure who built them but believe it was about 50 years ago (i could make enquiries)...

              2. What sort of lease does T have?
              It's a 10 year lease, this has normally been renewable every 10 years, some people (perhaps 12) have actually bought extended leases at a cost of £15,000 + VAT for a further 10 years so obviously the landlord would have to buy them out if he wanted them off....

              3. Did T pay a purchase price (premium) for the lease?
              As far as i know the 10 year lease that started in Oct 2000 didn't cost anything...

              4. Does T pay ground rent, rack rent, or neither?
              Yes each chalet pays an average of £1,000 per year ground rent

              5. Is chalet only a holiday home or for permanent residence?
              The chalets are holiday homes and have a closedown period of 6 weeks every Winter, tenants must have another permanent residential address in order to own one...

              Comment


                #8
                You may take advantage of the pre-emption/lien law which guarantees a current renter or bordering property owner that he/she can have the right to buy the property during a change of its status (which in this case would be the turning of this property class from mobile homes to apartment building). This law states that among any potential buyer of the same property for the same price, you'd be the one having the right to buy it first. This is because you have real essential interests on the property itself.

                Hope it helped!
                OutRentHome.com the Home You Want, the People You Want

                Comment


                  #9
                  Originally posted by rinomanfroni View Post
                  You may take advantage of the pre-emption/lien law which guarantees a current renter or bordering property owner that he/she can have the right to buy the property during a change of its status (which in this case would be the turning of this property class from mobile homes to apartment building). This law states that among any potential buyer of the same property for the same price, you'd be the one having the right to buy it first. This is because you have real essential interests on the property itself.

                  Hope it helped!
                  Interesting. Please cite details of which Act of Parliament you mean that supposedly confers such rights on a short-term tenant or adjoining owner of a chalet. ahead of another potential purchaser.

                  TRANSLATIONS
                  Mobile home = caravan
                  Apartment = flat.
                  Real essential interest = leasehold only.
                  JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
                  1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
                  2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
                  3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
                  4. *- Contact info: click on my name (blue-highlight link).

                  Comment


                    #10
                    Interesting
                    I'm not sure you were being quite serious, Jeffrey...
                    The contents of this note are neither advice nor a definitive answer. If you plan to rely on this, you should pay somebody for proper advice.

                    Comment


                      #11
                      Could i just point out that chalets are not mobile homes, they are quite fixed to the ground and are essentially like small bungalows... the only way to remove them from the site would be to demolish them... this is one i used to own, 2 double bedrooms and has a complete floor area of approx 7 metres by 7 metres

                      Comment


                        #12
                        Is this forum just landlords and tenants or are there people who know the legal ins and outs of things? no one seems to know the answers to my questions.....

                        Comment


                          #13
                          sorry he has the right to do this, whether or not youre chalet is of residential standard ( bungalow type mobile home) or holiday standard ( tin sided single unit static) the park itself is holiday as opposed to residential, holiday home owners have substantialy less rights than residential park home owners, it is very common for holiday home owners to succome to these acts at the hands of the park owner , however if agreements were signed and understood at the time of inception , then theres really very little pity when the term ends and the park owner fulfills hes buisness obligations, therefore contractually the park owner is not doing anything he shouldnt or cant.
                          however unfair it may seem.
                          hope this helps


                          ps Im not a lawyer just in the buisness

                          Comment


                            #14
                            "The only way to remove it is to demolish"............

                            NO the other way is to split it down the middle (if its a twin) or hook the tow bar back on (if its a single)and roll it up on to a truck (like the one it rolled down from 30 yrs ago) and drive it away....
                            your parents still own it and they can put it anywhere they like,providing that
                            A.They have the relevant permissions on their chosen land

                            B.They can find a park owner willing to allow them to put their own home on a pitch.......FYI not gonna happen think hens teeth!!!

                            Chalets are mobile homes , They are also park homes , and caravans, it is a home on wheels that can be transported on the queens highway.
                            check out the caravan sites and control of development act 1960 for definitions.

                            Comment

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