Dream Lodge Group

Hi all, has anyone heard of the Dream lodge Group: My mother is about to make a substantial investment in one of their holiday cottages for a advertised guaranteed return of 8% for 3 years. Has anyone else invested with them or a similar company. They have stressed that NO solicitor is required in the transaction is the purchase is not being registered in my mothers name via land registry. I am not comfortable with this as my mother is 80 years of age. Please can anyone advise as I have found out that my mum is planning to hand over £100K (all her life savings on 1st November) this is prompted by the low return she is getting from the bank. I asked for a draft contract and was horrified at the hidden charges. Also requested sample accounts which when received I noted had no sign of having been audited. This seems to be an unregulated industry (a glorified timeshare in all but name). I look forward to hearing from you soon.


Regards
Lollypark

Do you recommend investing in the Dream Lodge Group? 35 votes

Yes
5%
oldmankellyPengui 2 votes
No
94%
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Comments

  • EdGasket
    EdGasket Posts: 3,503 Forumite
    Can't find anything specific but there has to be some risk to get a return of 8% in a market that is generally only paying 1.5%. I expect there are some caveats in the T&C's where you might get less than 8% plus always the risk that the company might go broke and she loses the lot. Is it FSCS protected like bank and building society investments? I suspect not. At her age it does not seem at all sensible to invest all her money in this; you should stop her if you can.
  • If a business has a year in its name it usually means a similar business run by similar people in a similar industry (often from a similar address) has been liquidated previously.
  • No
    How can I find out if the business has ben the subject of liquidation before?


    Regards


    Lollypark
  • TCA
    TCA Posts: 1,530
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    Regardless of the veracity of the claims about returns or the integrity of the sellers, this kind of investment is very illiquid and if your mother ever wanted her money back in a hurry (or at all), she might come unstuck. I hope you have luck in dissuading her from this investment. Try and make her understand it's not like a savings account where she can access her money any time she wants. And not even like a house which would *probably* be easier to sell on. I doubt very much that there's a ready buyers market for this product.
  • ColdIron
    ColdIron Posts: 8,893
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    No
    Did your mother contact them or did they contact her?
  • badger09
    badger09 Posts: 11,128
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    A very brief google search, which OP could have done, suggests that such a business exists.

    However, I wouldn't touch it with someone else's bargepole :(

    edit: who set up the poll, and why?
  • Linton
    Linton Posts: 17,061
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    No
    The company appears to be genuine with a number of sites across the UK, as you say a glorified timeshare. It has been around for a long time and is known for example to trip-advisor. The website has been around for some time.

    Dream Lodge appears to be a trading name of Waltham Chalet Park Ltd a company run by Simon Moir. He has been a director since 1998. So a reasonably established company it would seem.

    But have a look here at the posting from "insidergirl"

    As an investment...
    1) Dream Lodge and Waltham Chalet appear to be unknown to the FCA, so again as you say an unregulated company.

    2) 8% for 3 years. Then what? The 8% of course could well come from the invested capital. That % is not sustainable over the longer term.

    3) How would Mum get her money out if she needed it? I couldnt find anything on their website that covers this. Certainly no guarantees that she would be able to sell her stake for what she paid.

    So my conclusion is that it may not be an obvious scam as many of these "opportunities" seem to be but is highly risky suitable only for a wealthy investor with other more mainstream investments. As you have concluded, completely unsuitable for an 80 year old wishing to get a bit better interest than from the banks.
  • No
    Some further information: They have guaranteed my mother 8% net (i.e. after all running c0sts have been deducted). The T&C's are very brief and all costs are of course weighted against my mother. After the three years then they have promised returns in excess of 8% with comparisons made by other investment clients! They have said that as she is unable to buy a holiday cottage outright that they would pair her up with someone? I asked the question via an audioconference that if this other person went into financial difficulties could a charge be levied against the property. The sales person said no as the person did not own the property. You rent it on a 50 year licence. However this to me does not make sense as this is an asset to anyones estate. My concern is about estate planning in the event of my mother passing without the provision of legal services before the money transfer. Dream Lodge maintain that they are cash rich (then why do they need investment?) and have promised to buy back the lodge at original investment value after 3 years. I can not see this provision outlined in the T&C's
    P.S. I tried to attach a link to their website but the forum rules forbids it.


    Regards


    lollypark
  • No
    Hi Coldiron,

    My sister saw an advert in a national newspaper and encouraged my mum to go to a presentation in Cornwall.
  • TCA
    TCA Posts: 1,530
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    lollypark wrote: »
    My sister saw an advert in a national newspaper and encouraged my mum to go to a presentation in Cornwall.

    Your sister needs a boot up the **** then! Does she think this is a sound investment for your mum?
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