Why wouldn't I buy a park house - what are the downsides?

[katymac]

I'm guessing a mortgage would be difficult to get?
Maybe poor insulation?
Limited time to live in it (11 months, 50 weeks?)
Might not hold it's value?

Are any of these true or are they just things people say?

What haven't I thought of?

Many thanks

What's a park house?

Mobile home? Is that what you mean?

All that and more.

You are completely at the mercy of the owners of the park.

Yes - I feel its a bad idea but I have no evidense to prove one way or another

Im sure they are usually cash purchases only.

Then its like £200 a month service charge, I think?

Im sure that monthly charge would increase each year.

You'll not hold the freehold I think. Therefore park owner can boot you off at any time.

My ils have one. They have to maintain to a 'good standard' or they get booted off. They also don't allow vans over a number of years old (I think something like 15) Effectively after 15 years you have to buy a new van to keep your spot on the site. The park there's is on is also closed between December and March.

It's great as a little bolthole for holidays though.

Service charge that's good to know

& lack of security

These are all good reasons not to buy one (despite them looking very pretty & cheap - particularly the cheap bit)

back to the drawing board

Thanks all

A park home, unlike a house, is a depreciating asset. Many sites are for year round occupation. They are cold in winter and hot in summer. My in laws used to live in one, and it was a constant worry as you haven't got great sucurity of tenure as you don't own the land it sits on. They also charge a lot for water and electric, and you have numerous site rules to abide by.

Umm there's a residential site near me where they've bricked up their mobile caravans and own the plots on longer leaseholds, and they're not a depreciating asset either. 15 years ago they were fetching around £30k and are now fetching towards £70k. They seem to be bought by retirees on the whole. This is in Derbyshire.

Xx

You are often tied into using the site contractors for plumbing, electrics, decking etc so you can't shop around.

They can be good but you need to do your research about the park carefully.

I think the freeholder/park owner normally charges a commission on the sale too. At a % that would make even foxtons blush.

Radio 4's You and Yours programme has had numerous articles about park home sites and the unscrupulous owners over the last couple of years - as everyone above says you have no security, they can make you upgrade your van and charge enormous site fees. There have been some heart breaking stories. There is an MP taking on the cause - can't remember his name.

It's not ideal then

I'll keep looking for a bungalow (it doesn't help that they come under that classification on right move & don't get me started on 'retiredment discounts!!)

I lived in one years ago and it was great - single person on a permanent site, but not as a purchase due to what everyone else says. and I was more gypsy back then

When you sell it you have to repay 10% of the sale price to the park owner. In our case it was Berkeley Homes.

Fixed water rates were extortionate, something like £200 pcm.

You don't own the land/garden. Nothing is freehold.

Radio 4's consumer programme did a lot of work on these a few years ago. Landlords seemed, in those days, to have quite a lot of rackets going and tenants were losing money through it. I can't remember the details but someone will know.

My parents have owned/lived in a park home for about 10 years. We were worried about some of the issues others have mentioned when they initially said they were thinking of buying, but they've had no major issues and still believe they made the right move.

I think you need to do your research before buying into the type of park, rules and regs etc

in a word
AVOID

Don't do it. It's cheaper to just rent a house for a holiday as and when you want to!

They can also make you replace your park home when it reaches a certain age, regardless of whether it's still in perfect condition, and you usually have to buy one to meet their specifications or from one of their 'preferred' suppliers.