Holiday park deposit and LTV calculator
Enter the value and loan to value to see the loan, the deposit and the deposit as a percentage of the value.
Your estimate
Illustrative only. Not a quote or advice. Not an offer of finance.
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How the holiday park deposit and LTV calculator works
We take the park value and your chosen loan to value to split the deal into a loan and a deposit. The loan is the value multiplied by the loan to value. The deposit is whatever is left, which is the value minus the loan. The deposit percentage is simply one hundred minus the loan to value, so a 60 percent loan to value means a 40 percent deposit.
The formula is loan equals value multiplied by loan to value divided by one hundred. The deposit equals value minus loan. The deposit percentage equals one hundred minus the loan to value. There is no interest or term involved here, so the result holds whatever rate you eventually agree.
Why loan to value matters on a holiday park
Loan to value drives both the cash you need on day one and the terms a lender offers. Lower loan to value means a smaller loan, a larger deposit and usually keener terms, because the lender is more comfortable. Most holiday park and caravan park deals land between 50 and 65 percent loan to value, well below residential levels, because the lender is backing a trading business. Strong EBITDA, a long secure site licence and freehold tenure support the top of the range. If you want to model the monthly cost as well, use our holiday park mortgage calculator.
Worked example
On a 450,000 pound park at 60 percent loan to value, the loan is 270,000 pounds and the deposit is 180,000 pounds, which is 40 percent of the value. Drop the loan to value to 55 percent and the deposit rises to 202,500 pounds. We are happy to look at the wider deal and tell you which loan to value is realistic for your park and the trading income behind it.
Holiday park deposit and LTV calculator: common questions
How much deposit do I need to buy a holiday park?
On most holiday park mortgages the deposit is 35 to 50 percent of the value, because lenders typically fund 50 to 65 percent of a trading park rather than the 65 to 75 percent common on residential property. On a 450,000 pound park at 60 percent that is a 180,000 pound deposit. Adjust the loan to value in the calculator to see how the deposit changes.
What is loan to value on a holiday park?
Loan to value is the loan as a percentage of the value. On a holiday park the value rests on the trading business, the EBITDA and pitch-fee income, the site licence and the tenure, not on residential bricks and mortar. A 60 percent loan to value on a 450,000 pound park is a 270,000 pound loan and a 180,000 pound deposit. Lower loan to value usually means keener terms, because the lender carries less risk.
Can I borrow more than 65 percent on a holiday park?
Sometimes. Strong EBITDA, a long secure site licence, freehold tenure and additional security can lift the figure, while a short licence, leasehold tenure or thinner trading accounts usually pull it lower. Send us the deal and we will give a realistic view.
Want a real view on your deposit?
Send us the deal and we will come back with a view on fundability and likely loan to value within one working day.