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?

Fizzy, I would say your parents should be extremely wary here. Private Eye has had a number of stories recently about one such park in which the residents are allegedly facing very, very serious and indeed financially ruinous ongoing problems. That's not even taking account of the huge toll on their mental health.

Obviously I have no idea whereabouts in the country your parents are or where they're thinking of buying, but this doesn't sound like any kind of magic solution to their perceived problems. They should run very fast in the opposite direction imvho.

There was a thing on watchdog about it too but I can't remember all the details but a womans husband died and she couldn't afford something and was being chased for arrears but couldn't get out of the contract to sell it.

Can you get a sibling onside and try to get them to address the following

1. Is it on an easy and accessible bus route (to futureproof transport if they can no longer drive or afford a car)
2. Presumably they can register at a local gp (but the not being resident 12 months a year would make me want to check this)
3. Where will they live if site is sold and they are left with approx half the value?
4. What will their monthly living costs be including gym, bills (especially heating as insulation likely to be poor), site payments etc, and can they afford this from pension income on an ongoing basis. How are increases to site costs agreed - is there a committee or is it down to the owners.
5. A friend tried to sell one of these places and because the site owner had taken aganst him he deliberately put off all potential purchasers.

IamtheDevilsAvocado exactly right
My in-laws had one in Dawlish Warren it had a pool and social club. The new owners bought the next door complex and used that pool and club for both sets of Park Home owners meaning you could hardly ever get in and it was a much longer walk which is a negative as you age. The ground rent went up every year plus hassle over the age originally 20 years then assessment of condition by park owner after 10 years 'to maintain high standards' they sold at a huge loss and walked away. They must be one of the worst investments you can make.

Can they not get equity release to pay off the loan ? If inheritance is not a problem this could be a solution ?

They must be one of the worst investments you can make
^^ this with bells on

If someone lives on one of these caravan sites that is only open 11 months of the year, does that count as their permanent address?

What about the electoral roll, getting post and bank accounts, that sort of thing?

Do they have access to all the utility and phone etc service providers, or is their choice limited, possibly to more expensive options?

It seems that there might be so many inconveniences in trying to use the loophole to dodge council tax, that the extra costs and inconveniences outweighs the saving?

Oh and retirement flats can be really nice . They need to look at other options .

MrsJayy - yes, and it's not even an actual investment! It depreciates and needs replacing! The land it's stood on isn't even owned!

I think it would be a massive mistake.
Statics are worthless
The ongoing costs are equivalent to a mortgage.
Park owners can do what they like wrt to fees. The fees WILL go up every year.
There are usually very strict rules around re-sale. ie. you have to sell back to the park and they will pay you bugger all.
Rooms are small. If one of your parents needs a hoist etc in the future they probably won't be able to have a permanent one installed and the room probably won't be big enough for a mobile
Thats without taking into account the general accessibility of the static.

Static homes are never an investment unless you are a site owner.

They must be one of the worst investments you can make.

They're only an "investment" if you're the sort of idiot who "invests" in time-shares. They're pure cost, a depreciating asset of uncertain liquidity which cannot be sold on the open market and which requires expenditure every year to maintain even the notional value it has. They have no more "investment" potential than the meal you ate last night.

They need to consult a proper Independent Financial Adviser about their current situation rather than coming up with crackpot schemes such as this.

You are right to be concerned. These "homes" are generally not a sound investment. My DH remembers someone who retired from his office some years ago, downsized from their family home and bought one of these park homes. It didn't end well. They lost loads of money.

I do wonder whether people who buy these park homes think that life will be one permanent and glorious holiday once they move in. They might be seduced by that notion, but it isn't reality.

Agree with all the PPs, it is a terrible idea.

As others have said there are many cases where people have been badly caught out and left with nothing. New owners, annual fees suddenly soaring up, changes in the terms of the agreement etc, plus they are perishingly cold in the winter.

YANBU. Get googling, and try to dissuade them.

I am still bitter about it 10 years on

Yes. Those static homes are FREEZING in the winter and BOILING in the summer.

They would be better off downsizing to a more suitable smaller home or looking into assisted type living where they would at least have a proper roof over their heads. Why don't you suggest they stay in one for a holiday when it snows next.

Have your mu & dad actually looked at retirement flats or do they know that they couldn't afford one?

I viewed recently for my parent & some of them in all honesty I'd move into now!

Warm, secure, easy to maintain. Fabulous communal rooms & gardens.

Randomly looking at Rightmove, I particularly like this one:

www.rightmove.co.uk/property-for-sale/property-60991078.html

I hate them
I am a community HCP and see people stuck in nightmare situations
They are horribly unsuitable for anyone with disabilities. You usually need to be able to drive as they are out of town
Ground fees can be astronomical. I know someone who had reasonable fees but the park has been sold and fees gone up
The depreciation is huge. You are putting all your money into fixtures and fittings and not the structure. It's like putting gold taps into a tent

Will the static van be suitable for any alterations if one of your parents becomes ill or disabled? Are they allowed to make alterations?

I think you should show them this thread.

My partners grandparents did this. All was good until his grandfather died only at age 65 and then his grandmother was left there in the middle of nowhere very far away from all family members. She didn’t drive so was left getting several buses to see her family most days so as not to be lonely. In the end it was too much to pay for with extra fees each month even though it was bought out right and she decided to sell up. It took years to sell and she took a hit when selling because she just wanted rid. They need to think long term.

You lost my sympathy at the bit about avoiding council tax

You lost my sympathy at the bit about avoiding council tax

Why? It's the site that does that, not the individual.

My parents have an static top of the range HOLIDAY caravan, its hugh, 3 bedrooms with all the mod cons etc and its still very cold in the winter, its closed for 2 weeks in january but they dont go there much in dec,jan,feb as it really is cold. They could not live in it all year round they both say!

NFATR Aren't the individuals colluding with the site in the avoidance of council tax? Presumably they use council resources & services?