To think my parents are making a mistake?

[FizzyCherry]

My parents are both of retirement age, Mum is 69, Dad is 72.
Due to various reasons they didn’t get a mortgage until 20 years ago and both still work to pay it off, but they have at least 7 years left on it.

They have decided they want to retire, sell the house and buy a static home at a holiday park. They’re convinced it’s their ideal solution.

I totally understand their logic but I can’t help feeling they are being lured into a situation they will end up regretting.

If they sell the house, they can clear the mortgage and buy a static home outright with money left over.

However, they still have to pay the equivalent of 2/3 of their mortgage in ground rent and various other fees.
The park has swimming pool, gym etc, they are “free to use” - but that’s another £120 a month membership (!)
They must vacate their home for the whole of February every year so the site residents can avoid council tax.
Plus a friend of theirs lived somewhere similar that the owner decided to sell to developers. They were given £45,000 to “buy somewhere new”, after having lived there 10 years. They only owned the home, not the land, so that actually wasn’t a bad offer, but obviously nowhere near enough to start again.
So although they won’t have a mortgage, their outgoings will still be quite high, and they won’t have the same income, and they will need at least one car because this place is in the middle of nowhere. Plus at the end of the day, they will have nothing to show for it.

I have visited and it’s nice, but I think they are so attracted to the idea of living on a holiday park they are not seeing the full picture.

In addition, it’s in the countryside, where my mum has always insisted she could never live.

I asked if they would even consider this village if they were looking at houses, they said not for a second.

I fully support them in needing to make a move (and the house they’re in they only bought when I was 20, I only lived there 2 years so there’s no childhood sentiments involved).
Nor is this about inheritance before anyone says anything.
Although we’re not well off now, my husband stands to inherit quite well and my parents have never had much, plus have several kids, so it’s never been something we really think about,

But AIBU to be wary of this solution? Their current house is five minutes from mine and they are convinced that I’m trying to put them off because it’s convenient for babysitting etc but I genuinely am not remotely thinking about me or my needs, I’m an adult who can sort my own life.

I haven’t told them this but my husband and I have been trying to work out a way to help my parents pay the mortgage off but we’re just not in that position right now.
Nor can we offer them a spare room for February every year, we don’t have one. Nor do my siblings (one does but he lives abroad and my parents don’t like flying so he comes here for visits).

I suppose what I’m looking for is reassurance that I am BU, or at least more experiences of why I’m not.

I have suggested they look at retirement flats etc, my mum thinks they are for “old people”.

They like their house and would stay if they could afford it.

WWYD?

To OP

Have your parents looked at the numbers in detail? If rents/fees, etc., are 2/3 of existing mortgage and they have to find somewhere else to live one month per year I am not sure they will be any better off by moving?

However, it is their decision to make. I had similar situation over 20 years ago. Parents bought a house with help from myself and rented out their first house. Rental income covered most of the mortgage so I suggested not to sell the first house. Like your parents they wanted to be mortgage free so they sold.

Hindsight is always perfect, but they would have had a lot more retirement money had they not sold first house.

Have a look at Moneybox on radio 4, I'm sure they did something on this. You need facts to back it up but I agree it's not the solution for them. You probably need to offer them some help financially with the house, if they knew that was possible in the future perhaps they could hold on a while.

Those holiday home are a rip off but they are for holidays not cheap accommodation and shouldn't be used for such

I vaguely remember listening to something on R4 about this. I think there's some issue with the units needing to be replaced at 10 year intervals and that being difficult.
I'd be concerned too. If it's a distance away from you, it will make it harder for you to support them as they get older. My parents are generally fit and well in their mid 70s but occasional health problems surface and some support from adult children doesn't go amiss.

What about a retirement flat, OP - they're cheaper than a house and much more practical.

Ultimately it's their decision but static caravans are not the comfiest long-term and, as they get older, if their health needs change. They can be extremely cold in winter; because they are usually on a field they are also very exposed; like you say the ground may be sold for house development; it won't really have value as such (except minimally) whereas the average house would retain its value.

Basically a house is more worthwhile than a static caravan in terms of quality of living, comfortable - the bedrooms are by nature tiny in caravans are as the bathrooms, this would not be comfortable or practical should they develop mobility issues in the future.

Could they look at buying a ground-floor apartment instead of the house? Or hanging on for the time being with the promise that you and DB will be able to help them a little with the mortgage when you can in the future?

YANBU. This will concern you directly if they run into problems, particularly health problems.

Op - I would look at 'Park Homes' or similar. DHs Uncle bought one years ago when he sold off his council flat. Its now worth upwards of 240K, for what I would call a static caravan.

Aunt and Uncle have the time of their lives, everyone is 50+, they have on tap entertainment, use of all the facilities, and a wonderful community. They've been there nearly 30 years

So provided they pick the right type of park, all will be well.

www.kingsparkvillage.com/

My parents sold their flat that was 2/3 paid off (bought from council at knock down price), went travelling for a year, blew nearly all their money, bought a cheap narrow boat that needs work and are now more skint than I am. It's fine for now as they're only in their 50s, but Dad has to work so they can't move around much and when they are old enough to retire they likely won't be in good enough health to manage... I've kept my mouth shut all the way through, despite thinking they were making bad decisions. It annoys me no end, but it's their life.

I don’t think you’re BU to be concerned. They seem only to be thinking about their immediate situation when this is a time to be considering their future needs. They need to picture themselves in 15 years time, cut off by snow or unable to drive due to failing eyesight. What exactly do they propose to do each February and, when they add February & the ground rent together, why do they think it would be cheaper?

I think I would write down my concerns and ask them to consider the list. These conversations are difficult and it can help to let them consider your points in their own time. You support them but you have concerns. You’re not being unreasonable, you just want to be sure that they have thought this big step through.

BBC radio 4, You & Yours programme has run several pieces about people trapped in dreadful financial trouble when the ownership of parks changes hands. I expect you could google it & listen.

I think you have every reason to feel concerned for your parents specially the month long vacating in February it will cost quite a lot in rental costs.
Some of these Parks have allsorts of rules and regulations which you need to weigh up,no visitors staying etc.
What happens when one of your parents becomes too infirm to get to shops/Doctors etc.
I cannot understand your parents attitude re retirement flat/bungalow they are not just for old people most are just over 55 and have the help (if they want it) of all the services available when we get to this age some need more than others .There is also the resale problem in most cases the Site Company insist on them buying a vacant unit at a price a lot lot less than the true value .Tell them to be very very careful indeed.

My mom looked at this too but the site was looking at would only have statics that were six years old maximum which meant she would have to get a new one every six years. Could they look at a council bungalow?

My Dad did this.

Sold the family home and bought a static. I think he had it maybe 7 or 8 years and then sold it for half the price.

In the time he was there, the rent tripled as the park changed hands a couple of times. The park also was run down and by the time he left it wasn't anything like as nice as when he moved there. The caravan itself in that time had to have work done (he had to put in better doors as it was broken into at one point as the doors were not as secure as house doors).

He was lucky in that he had somewhere to go (moved in with his girlfriend) but otherwise he would have been stuffed.

Also, if they do go ahead, check that they can sell it on privately. Some sites have a clause that any sale must be done through them (with a fee).

They need to be very careful in choosing the right park. Where will they go every February? What is the fallback plan when the site decides the caravan is too old and needs upgraded?

My PILs had a static caravan and ended up paying thousands at the end of their 15 years to get rid of the van.

They could have bought a holiday flat for what they paid over the time, and used it all year.

Property Lawyer here - Park Homes are, generally, a bad idea. Especially one where they have to vacate for a month. The saving in council tax will not cover the rent on a place for 1 month.

I would suggest downsizing to a flat. Not a retirement flat (they are just as bad for charges and fees), but a regular flat.

Council bungalows are like hens' teeth since right to buy and nobody who already owns a home would be eligible in any case.

Doesn't sound like a great plan. Don't caravans have to be replaced every 10/15 years? How do they plan to pay for that? Wouldn't heating be very expensive?

What do they plan to do in February every year? Although some people who live in static parks will spend the month they can't live there in places like Benidorm or Malta, which can be fairly cheap out of season.

If they don't want a mortgage, is there any scope to downsize? Although sometimes, bungalows and flats aren't significantly cheaper than mid sized semis, so not always possible.

You need to let this go and back off. This is their decision, even if it is a mistake

Do people who answer like that have families, or ones they don't like at all?

It's not a normal response to knowing that people you love are making a big mistake and trying to think of a way to help them.

My mom looked at this too but the site was looking at would only have statics that were six years old maximum which meant she would have to get a new one every six years

I was just about to post similar. There's a site locally here, and whilst it's a better option for people as it's a year round site, the vans must be less than eight years old. So people either move to another site (with poor facilities) or they have to sell their van and buy a new one at huge cost.

Also, have they checked things like what your local council will pay in housing benefit for site fees if they are likely to need that when they retire? If the monthly fee for the facilities is separate then they'll be on site, but without access to those facilities so are there no parks around that have everything included in site fees (if they are determined)?

You need to let this go and back off. This is their decision, even if it is a mistake

I think the problem is that when their minds are made up, there is no dissuading them. When it then goes horribly wrong, you have to resist the temptation to say, 'I told you so'.

I live somewhere which has lots of Parkhomes most have been on the market for years all priced well over £200,000. Doesn't matter what people say they are worth nobody wants to buy them around here, so make sure you check local markets if you were going to suggest this.

Sorry not read all,the replies.

I think it sounds like a disaster too.

Could they rent out there house and rent a caravan for a year or so and see how it goes?

Get them to read THIS and all the other additions. It’s a newsletter from park home residents who feel they are being scammed. It’s a bit ranty.

Less ranty is the Age Concern guide toe park homes.

how about writing down your concerns. They can sit down calmly together and go through them point by point. Then take another look at the park ?

My Mum looked, but ended up buying a lovely 2 bed retirement flat in an area she had always through she couldn't afford to live. It's year round, warm as toast, modern, has communal facilities, She pays council tax (a lot less than the house she moved from) and her annual fees for management (onsite who even will come and change a light bulb to save old ladies falling off chairs) and insurance and water and the pull bells is a couple thousand a year. Some people in her block are still working so not all on their last legs so to speak. It has gorgeous gardens and a conservatory too.

If they’re living in a caravan and have health issues for example need a shower hand rail for safety caravans don’t have sturdy enough walls to fit them, similar issues with steps up and narrow walkways if they need a walking frame.

Have you sat down with them and put down the cold hard figures of income and expenditure.

Factoring in (as someone said upthread) that they will have to replace the caravan every 10/15 years, how old the caravan is etc.

It seems they want the holiday experience. Have they thought of selling and buying somewhere on the coast. A flat above a shop over looking the sea or even looking to buy somewhere abroad. Spain, France etc can be driven to so they wouldn't have to fly. Plus the outgoings would be much smaller.

They seem to want to change their lives. I can understand that but why not change completely.

I have friends who have done this and it is the best decision they have made.

Another thing to consider about holiday parks is that they usually have a restriction on the age of the home meaning you have to buy another one about 5 years down the line. The depreciation in holiday homes in these parks in enormous. If you dont buy another then you need to pay for its removal, in fact theres often a charge if you do buy a new one for siting it

A lot of holiday parks entice people into ownership with reduced fees in the first year, have they checked what 2 nd, 3 rd year will be?
There may be hidden fees like winter storage ie for the place getting looked after when vacant in February. Plus you tend to HAVE to buy gas bottles from the park, pay their electric fees, cleaning and maintainance fees too.

Have they budgeted for heating in the winter?

Holiday static homes tend to be poorly insulated.

Can they get phone lines, broadband, tv packages.
Have they thought about the noise and disruption in high season

I know someone who bought a holiday caravan and regretted it in the 2/3 years when payments got higher.

How would they get to doctors, hospital, shopping?

A residential park may be a better option, they allow all year residence, you can usually get phone, broadband, sky dish etc. you still need to pay ground rent and council tax but then you wont have the entertainment fees for use of pool etc.
Often you can have oil central heating, freedom to choose who delivers gas bottles, insulate and change the roof etc

I can see why you are concerned.

Id get them to look at how much they will be paying each month in mortgage until its cleared vs the TOTAL cost of living in holiday park.

Is there any way of changing the type of mortgage they have?
Maybe one that releases equity?