AIBU to buy a park home?

PianoExam · 2021-02-27T09:59:30+00:00

I am in my mid 50s and we are wondering about downsizing to release capital to travel. Husband will carry on working but works from home anyway. We have looked online at park homes and possibly retirement villages. Both look tempting. Are there any pitfalls to look out for?

KeyboardWorriers · 27/02/2021 10:02

The catch with both of these is usually the service charges.

There have been a lot of cases where site owners have massively ramped up services charges as the years go by

MyCatLovesFish · 27/02/2021 10:03

I think your biggest risk with both is service and other charges from the operator. Link to advice on park homes including what to look out for here

ItsSnowJokes · 27/02/2021 10:08

Don't do it. It is a massive ball ache. The service fees get increased year on year, once the park home gets past a certain age the land owner can make you replace it with a newer one, if you want to sell you have to pay the land owner x percentage of the sale. When you die and the park home is old, they can charge your estate to remove the park home.

Look for a smaller property that you at least own the land on.

ThePinkWig · 27/02/2021 10:11

Retirement villages are fine; the service charge is strictly controlled in line with inflation.
I would never buy a park home for the reasons stated above.

LibrariesGiveUsPower45321 · 27/02/2021 10:13

Don’t do it, downsize to a flat or bungalow you own the deeds to.

My Gran bought a serviced flat. The fees ended up being astronomical and we had to pay them after she died until the flat was sold. It sold eventually but only £50,000 for a central Big expensive city flat that was the same as she paid for it a couple decades before - no one wanted to buy. Similar flats with no service charge sell for at least 6 times that.

HerLadySheep · 27/02/2021 10:23

A park home is only designed to last 25 years so you won't be buying an asset that you can sell on or leave to family, it's like a car, it depreciates in value until you have to pay to get it cleared from the pitch. They're lovely for a holiday but I wouldn't like to live in one.

Original poster

PianoExam · 27/02/2021 10:37

Thank you all. Useful advice!

OP posts:

Talia99 · 27/02/2021 10:38

Bear in mind some park homes have restrictions on how many months of the year you can live there.

A retirement village where you own the house / flat might be good. I have an aunt who lives in one. The service charge is £250 per month but that covers a warden and emergency call services as well as usual maintenance etc. The flats don’t sell for as much as other homes in the area but she didn’t pay as much to buy it either.

Scarlettpixie · 27/02/2021 10:44

I don’t think it is a bad idea at all. I know a few who have done it. I would consider it when DS has flown the nest.

You need to be really careful with the terms and conditions, service charge (£1-3k per year on top of council tax) what it covers and what increases are allowed and lifespan of what you buy. Some are beautiful and quite large.

Not all park homes have a short life though. There is a lovely site near me (Derbyshire) which is for over 45s and is gated and secure. Part is by the river and part wooded. Both are lovely. Prices seem to be from £120-200k. The site offers caravan storage for residents. The two couples I know on there love it. They like the peace, security and community and have no regrets.

Original poster

PianoExam · 27/02/2021 13:51

@Scarlettpixie

I don’t think it is a bad idea at all. I know a few who have done it. I would consider it when DS has flown the nest.

You need to be really careful with the terms and conditions, service charge (£1-3k per year on top of council tax) what it covers and what increases are allowed and lifespan of what you buy. Some are beautiful and quite large.

Not all park homes have a short life though. There is a lovely site near me (Derbyshire) which is for over 45s and is gated and secure. Part is by the river and part wooded. Both are lovely. Prices seem to be from £120-200k. The site offers caravan storage for residents. The two couples I know on there love it. They like the peace, security and community and have no regrets.

Thank you for providing another viewpoint. I do feel tempted by the lovely grounds some park homes are set in.

OP posts:

Reedwarbler · 27/02/2021 14:11

My in laws used to own a park home on a fully (and solely) residential site for the over 55s. They were happy there. Pros were having a generous garden where they could grow veg, lots of friends, peace and quiet. Cons were the ground rent (you never own the actual plot and they were paying £150 a month 15/20 years ago), plus they also had to pay a lot for gas and water. The site owners often changed and they did have a dodgy one who started insisting that the older units would have to go, which left some people homeless as they couldn't afford a new unit on their site. Park homes will always be a depreciating asset. They can also be very cold in winter and very hot in summer. Some park home sites are isolated and a long way from shops too.
When my mil died, fil moved closer to us and bought a flat for the over 65s in a lovely setting. It is so cosy, warm and comfortable, I would happily live there myself if I were older. The annual charge is high though, at nearly 3k a year (and rising). Perfect if you want a lock up and leave though because, being in a gated community, no worries about burglars getting in. Fil died in December and we will be selling it shortly once we've got probate. We would have kept it but renting it out isn't allowed by the freeholders. We will be selling it for much the same price it cost, 7 years ago. They have rather a limited market. I think the security and comfort of a retirement flat or bungalow is much better than a park home.

dottiedodah · 27/02/2021 14:35

I would be very wary of Retirement Villages .My DM was still charged service fees even though she ended up in Care at the end .Also a massive PITA to sell on as well(most people go for a new apartment)

whatsthestory123 · 27/02/2021 15:05

we had one near me and was near a beautiful river,it flooded and has flooded nearly every other year

up to you but i would touch one with a barge pole for all the reasons up thread,by yourself a flat or bungalow or a retirment village flat butnot a park home

LampsOn · 27/02/2021 15:08

It has been well documented on money box what poor value they represent - I'd have a look through the bbc archive about it and do your research

Scottishshopaholic · 27/02/2021 16:31

I’d stay clear of retirement villages, you’ll probably be the youngest there in your 50s. Plus you don’t want neighbors complaining when you have grandchildren playing in your back garden.

speakout · 27/02/2021 16:33

You are still young OP.

A retirement home in your 50s???
Give it another 20 years and reconsider.

bluebluezoo · 27/02/2021 16:39

Retirement village in your 50’s?

I’m 50 and will be looking at downsizing in 10 years or so. Choices will be a city centre flat where I have easy access to transport and amenities, or a smaller house in a smaller town, possibly seaside.

I sometimes think of getting a state of the art RV thing and a plot of land, and just spend retirement driving round europe until I need residential care

SnotLongTilEaster · 27/02/2021 16:40

There are so much service charges with park homes, also I do believe you can’t live in them for at least a couple of months per year.
I have a friend who lived in one after his marriage broke down. He had to stay with friends from November/December until about March. It may differ from different parks to different regions, not sure. But all I know is, everybody I know who has bought a park home has regretted it.

Ariela · 27/02/2021 16:44

No, the service charges are a killer, plus they're of no real 'value' after 25 years how would you afford to replace it?
Avoid IMO.

Original poster

PianoExam · 27/02/2021 16:49

I think I have my answer. Most people saying a park home is a bad idea! Will start looking at flats and bungalows instead. Thanks all for your input.

OP posts:

speakout · 27/02/2021 16:53

There may be other options OP.
Equity release? I know that is not great value- but only for those left behind.
Do you work?
You want to travel, but perhaps your skills could mean opportunity for contracting work, or you could become self employed.

I am trying to understand.
You are in your 50s, want to retire and travel. I don't blame you but few are in that position.

Notcontent · 27/02/2021 16:55

Seriously - you are in your 50s and thinking of park homes and retirement villages?!?! You are still so young!

If you want to downsize then just buy a small house or flat.

1Morewineplease · 27/02/2021 17:10

Retirement homes tend to be leasehold and can often be sold on at a loss. ( I quickly googled the retirement homes association.)
Maintenance fees can cost a huge amount per month .
We did briefly think about them.
Facilities are often wonderful but it does come at a price.
I think you'd be better off buying something small of your own.

TankGirl97 · 27/02/2021 17:12

The land owners of the park home close to me get 10% of the sale price every time a unit sells. So if you sell in five years for £80k, you have to pay them £8k. Plus all the service fees of course.

Sylvia1491 · 27/02/2021 17:26

I think people are confusing Park Homes with Static caravans. Park Homes are designed to live in all year round, the sites are fully residential and do not close at all throughout the year. They are also built to last a lot longer than 25 years. As long as they are maintained they are still going strong after 40+ years.