Are park homes leasehold or freehold?26 September 2020
Owning your own holiday home is a dream for millions. Hence why more and more people are making it a reality by purchasing a park home.
A park home is designed and engineered to deliver exceptional levels of space and comfort. Best of all, they can be found on a wealth of scenic sites throughout the UK, along the coast and in delightful rural locations. Around 100,000 people have made a residential park home their permanent residence.
At Willerby, we talk to a lot of people who are considering buying a park home. In this article, we answer one of their most frequently asked questions: are park homes freehold or leasehold?
The answer is neither, and here's why
When you own the freehold of a property, you own everything outright, including the land it stands on. Leasehold means that you own both the building and the plot, but for a limited period.
According to the Mobile Home Act 2013, park homes are neither freehold nor leasehold. That's because all you are buying is the static caravan itself. The land remains the property of the park owner at all times.
How site agreements work
As a park home owner, you sign an agreement with the site owner and pay an annual pitch fee. Having separate arrangements for the structure and the land is what makes a park homes purchase different from conventional home buying.
The site agreement is for a specified period (typically around 70 years). When it expires, you continue to own the park home, but will need to renew the agreement.
One result of this is that mortgages are not available for park homes. This is because a mortgage only applies when the purchase includes the land. Finance won't be a problem, however, as various types of affordable loan are readily available.
Your rights are protected
In addition to renting the pitch, you will be paying the site owner a service charge for general upkeep of roads, communal areas and other facilities. Then there are charges for utilities, such as electricity, gas and water. The site manages these, but there are strict safeguards in place to ensure you only pay a fair market rate. In fact, your rights are protected in several ways under the 2013 Act.
Now you've seen how easy it is to own a park home, why not take a look inside our latest models? Explore the endless holiday possibilities by visiting the Willerby Bespoke website.