Holiday park refinance and equity release

When is the right time to refinance a park?

The best time to refinance is usually when something has changed in your favour or when an existing deal is approaching its limits. A clear trigger is improved trading: if EBITDA and value have risen since you last borrowed, the park may now support better terms or a meaningful equity release. Another is the end of a fixed period or the approach of a facility's maturity, when you would be refinancing anyway and it makes sense to review the whole structure. A third is a change in plan, such as wanting to expand, acquire, or release capital for another purpose, where the existing lender cannot or will not support the next step. In each case the question is whether a new facility delivers enough benefit to justify the cost of moving.

We help you judge the timing by weighing the gain against the cost. Refinancing carries a new arrangement fee, valuation and legal costs, and sometimes an early repayment charge on the existing loan, so the saving or the capital released needs to be worth it. We model the all-in numbers, including any exit costs on the current facility, and compare them honestly with the benefit. We also look at where commercial rates sit, since the wider rate environment affects whether a re-rate is attractive. The aim is a clear, evidenced decision rather than refinancing for its own sake. These figures are indicative and are not an offer of finance.

How much equity can I release from a park?

The amount you can release depends on the park's current going-concern value, its sustainable EBITDA and the loan to value a lender will support, typically in the region of 50 to 65 percent for a trading park. In simple terms, the new loan is sized against today's value and income, and the equity release is the difference between that new loan and the balance you still owe on the existing facility, less costs. So a park whose value and earnings have grown since you last borrowed can usually release a worthwhile sum, while one that has stood still has less to give. The strength of the income, the durability of the site licence and the tenure all influence how far a lender will stretch.

We start by estimating how a park valuer is likely to read the business today, then model the new loan and the cash it would free after repaying the existing debt and meeting costs. We are realistic about valuation, because an equity release built on an optimistic figure rarely survives the lender's own valuer. We also keep the resulting gearing sensible, since over-borrowing against a single good year leaves no headroom if trading dips. Where you hold several parks, we look at whether a partial release from one or two is cleaner than re-banking the whole portfolio. The figures we discuss are indicative, depend on the lender's valuation, and are not an offer of finance.

Can released equity fund a further acquisition?

Yes, and this is one of the most common reasons experienced operators release equity. A park that has grown in value holds capital that, once released, can provide the deposit and costs for the next acquisition, allowing a portfolio to grow without injecting fresh outside money. In practice we often arrange the equity release on the existing park alongside the acquisition mortgage on the new one, so the two facilities are coordinated and the overall gearing across the group is controlled. Because park lenders look favourably on a proven operator with a track record, using equity from a well-run park to buy another can be an efficient way to scale.

The discipline is to keep the combined borrowing serviceable and to avoid stretching one park too far to fund another. We model the income and debt service across both parks, and across the wider group if there is one, so the structure works in realistic trading years and not just the best one. We also make sure the security and guarantees on the release do not create a problem for the new acquisition lender, since a tangled charge structure can slow or block a deal. By planning the release and the purchase together, we keep the path to growth clean. For broader commercial acquisition funding our sister site Commercial Mortgages Broker may also help. We do not give financial advice, and all figures are indicative.

How does refinance work across a multi-park portfolio?

A portfolio of parks gives more options but also more moving parts. You can refinance the whole portfolio onto a single facility with one lender, which can simplify administration and sometimes improve terms through scale, or you can keep the parks on separate facilities and release equity from one or two while leaving the rest untouched. The right approach depends on how the parks are owned, the spread of their values and incomes, the existing facilities and their exit costs, and your plans for each asset. A single portfolio facility creates cross-collateralisation, where all the parks support the whole loan, which can be efficient but ties the assets together; separate facilities keep them independent but may price slightly higher individually.

We help you weigh these structures against your objectives, whether that is releasing maximum capital, keeping individual parks separable for a future sale, or simply securing the best overall cost. A partial release from a strong park within the portfolio is often the cleanest way to fund the next step without disturbing facilities that are already well priced. We model the gearing across the group so no single park carries an unsustainable load, and we coordinate the lenders so the moving parts complete together. We do not give financial, legal or tax advice and you should take your own professional view on structure. These figures are indicative and are not an offer of finance.

What will a lender want to see for a refinance?

A refinance is underwritten much like a new park mortgage, so lenders want the same core evidence, focused on demonstrating the improved position. That means up-to-date trading accounts and management figures showing the stronger EBITDA, a clear breakdown of income by line, the current site licence and planning position, and details of tenure. They will also want the existing loan details, including the balance, the rate and any early repayment charge, so the benefit of moving can be assessed. Because the case rests on the park being worth more and earning more than when it last borrowed, the quality and clarity of the recent trading evidence really matters, and a clean, well-presented set of figures speeds the whole process.

On the borrower side we provide the corporate structure, the principals' position and, where relevant, the wider portfolio, since lenders commonly take a first charge, a debenture and personal guarantees on a refinance just as on a purchase. Where any security touches the borrower's own home, a regulated mortgage element can arise and we would refer that to an appropriately authorised firm. We assemble the pack so the lender can see the improved performance at a glance and lend against where the business is today. Operator profit conversion averaged around 29 percent in 2024, according to Savills, Holiday and Home Park Update 2025, a reminder of how a well-run park can build the value that supports a strong refinance. We do not give advice, and all figures are indicative.