Buying a caravan or lodge on a holiday park is a big commitment, so it’s only natural to worry about what might happen if the park is sold or closes in the future. Many owners assume they will need to sign a new agreement or that their rights could disappear overnight — but this is rarely the case.
Understanding how park ownership changes work, and how your park licence agreement protects you, can give you confidence and help you plan ahead.
When a holiday park changes ownership, it does not usually affect the legal rights of existing caravan or lodge owners. Your agreement is tied to the pitch, not the individual park owner, which means your position is generally protected.
Park closure is a separate situation and can have more serious consequences, but even then, owners are not without rights.
Do You Need to Sign a New Park Licence Agreement?
In most cases, no.
If the park is sold to a new operator, your existing park licence agreement normally continues exactly as it was. The new owner effectively steps into the shoes of the previous park operator and must honour the terms already agreed.
This means:
You keep the same pitch
The remaining length of your licence stays the same
Existing pitch fees and review clauses still apply
Your rights to sell or assign your caravan or lodge remain intact
You should not be pressured into signing a new agreement simply because ownership has changed.
👉 You may find it helpful to read: NACO Blogs
Can the New Park Owner Change the Rules?
A new park owner cannot remove or reduce your existing rights, but they may:
Improve or upgrade park facilities
Enforce existing park rules more strictly
Review pitch fees only in line with your agreement
Any changes must still comply with the terms of your park licence agreement and relevant legislation.
If you are asked to sign a new agreement, it’s important to get independent advice before doing so.
👉 Related guidance: NACO Blogs
What If the Park Closes or Is Redeveloped?
Park closures are less common but can have a significant impact on owners.
If a park is closing or being redeveloped, owners should receive formal notice. The length of notice and your options will depend on:
The wording of your park licence agreement
The reason for the closure
Planning and local authority approvals
Closure usually cannot happen without warning.
Are Owners Entitled to Compensation?
In some situations, owners may be entitled to:
Compensation for loss of the pitch
Time to sell or remove the caravan or lodge
Assistance with relocation to another park
Older caravans or lodges may not be suitable for relocation, which can limit options, so early advice is important.
What Happens If You Want to Sell?
If the park is still operating under new ownership, selling your caravan or lodge usually follows the same process set out in your licence agreement.
If the park is closing, selling can be more difficult, as buyers are unlikely to purchase a unit without a pitch. In these cases, options may include:
Relocation to another park
Removal and resale elsewhere
Negotiated compensation with the park owner
Why Your Park Licence Agreement Matters
Your park licence agreement is the key document that determines what happens if a park changes ownership or closes. It should clearly explain:
How long your licence lasts
Notice periods
Termination rights
Compensation or relocation provisions
If anything is unclear, it’s best to seek advice before problems arise.
Key Takeaways for Caravan and Lodge Owners
- A change of park ownership usually does not affect your rights
You normally do not need to sign a new agreement
Your park licence agreement continues with the new owner
Park closures require notice and may involve compensation or relocation
Early advice can protect your investment
Conclusion
A park changing ownership or closing can feel unsettling, but in most cases, caravan and lodge owners are far more protected than they realise. If a park is sold, your park licence agreement normally continues unchanged, and you are not usually required to sign a new agreement or give up existing rights.
While park closures are less common, they must follow proper procedures, including notice periods and, in some situations, compensation or relocation options. The key to protecting yourself is understanding your park licence agreement and seeking advice early if changes are proposed.
By staying informed and knowing where you stand, you can make confident decisions, protect your investment, and avoid unnecessary pressure or uncertainty if the future of your park changes.
