Park Home living

[1Strawberrycat]

I'm considering purchasing a Park Home to live in. Any Pros and Cons? Thanks

Maintenance costs, and having to replace the caravan after a few years so the park maintains its appearance.
Not being able to stay 52 weeks of the year.
No increase In the value of your property.

Thought there were some sites 52 weeks a year. I yoked with idea, went to a couple of local sites too.

Their value depreciates.. maintenance and ground costs are high.

I do see the appeal but financially they're a mistake as far as I can see.

You are buying a rapidly depreciating asset and liability for large fees that can go up exponentially. You don’t own your plot and many parks will not permit units over a certain age to occupy prime plots so owners either have to buy a new unit or find themselves on the periphery of the site overlooking a wall or a car park.

Even if the park you are looking at is well run and has happy long term residents it could be sold at any time and you could end up dealing with a tosser who ramps up fees and neglects the site.

Never, ever do it as an investment. If you really want to have a Park Home and money isn’t an issue for you, now or in the future, do your research; have a lawyer experience in the field scrutinise any contracts before signing and go ahead.

My concern is that if you are thinking of living there, as opposed to having one as a bolt hole in a location you love, you would be spending a large proportion of your savings on the purchase or even taking out finance to fund it and that really would be a bad idea financially and it would be difficult to claw your way out if things went sour. You would place yourself in a very vulnerable situation.

I think you have to be very careful. Some of them you can’t stay year round. Some will charge high maintenance( I’ve seen nearly 8k a year for a premium spot) . Some you have to buy a new home (from them so £££) every 10 - 20 years depending on whether lodge or caravan.

Also even if the park you buy at is reasonable there’s no guarantee it won’t be sold further down the line.

… for example a friend’s mum really wanted a static on the Northumbrian coast. Her accountant daughter explained all the pitfalls and financial detriment and friend’s mum understood but did research and went ahead

She can afford it and it’s not her main home: she bought it out of a portion of the capital she had after downsizing. If goes tits up she will still be comfortable financially and she really enjoys going there with the dog. In that situation it’s “worth it” because it’s her money, it gives her pleasure and she is fully aware it doesn’t make any financial sense. It’s an indulgence; analagous to spending money on travelling or eating out. She’s just buying an experience she enjoys and the money is gone, she knows she’s not investing in anything. My friend, who is not the accountant daughter, is fully supportive, I don’t think her sister can get her head around it but that’s because she’s a typical accountant 😂 and not because she grudges her mum the pleasure or has an eye on her inheritance, I don’t think.

Another friend who was my husband’s former cleaner has a static on the coast near where they live. They bought it outright when her husband retired. She loves it and spends most of her time there. They have great friends on the site and I think they crack the wine open early in the day. However they both have the security of a longstanding council house tenancy so again, it’s not their only home and if it becomes unaffordable or their mobility deteriorates then they will have lost money but not to significant detriment to their future life.

The above are the two examples of it working for people but I have heard of horror stories where it hasn’t worked out at all.

https://www.bbc.co.uk/iplayer/episode/m001x7pb

This facegroup group gives a good cross section of the many pitfalls

https://m.facebook.com/parkhomespolicyforum

I purchased a brand new park home 7 years ago
Live on a 12 month residential site in the countryside
Ground rent has gone from £118 to £139 a month in that time , that includes water
Gas and electric are very cheap
Maintenance has been minimal - £400 for weather proofed external painting last year and an annual boiler check
I have wonderful neighbours
Live in a beautiful village with easy access to towns and motorway in 10 mins
Nil security concerns
There is a home on this site that is 27 years old , the lady is 98 . Owners have said they will not touch it while she is alive and well , but when gone will replace it and sell a new one .

Downsides

People judge - including an ex friend who didn't see how my home was worth more than her bricks and mortar one
People are nosy - neighbours will even say " oh you were home late again last night " I say " well got to have fun while you can , actually I'm still at work 😩"
No bus route so really would be stuck if didn't drive
No shop so need to be organised
No delivery takeaway 😂good for the diet
Can be quite hot in summer ( yes even in Uk) so always doors and windows open

Main downside for me is people judging , " you live in a caravan " the reality is it's a beautiful home , very well made , plenty of space - 2 double bedrooms , mine has a king size bed , en suite shower , separate bathroom , fully integrated kitchen - fridge , freezer , washing machine , tumble dryer , dishwasher , front and back garden , safe parking .

So - I'd recommend doing your research, buy new and talk to neighbours prior to doing so

My friends uncle was on one and they would only allow caravans under a certain age so you needed a new one every ten or twenty years or whatever it was.

Maintenance of the site was a regular expense too.

Plus if you left and sold your van they charged you a percentage if what the caravan was worth too for some reason! Pure greed probably. It wasn't for advertising or anything. Just profit.

Read the small print.

There’s one near me and there are lots of seasonal workers living there, but they are there all year.

There is one near me - billing aquadrome - and I know a few people who have lived there. They said it didn't really work out any cheaper than an actual house once you've factored in all costs including moving to a hotel for the period you're not allowed to stay there. If it is billing, it floods a lot! It's also a lot of hassle to uproot your life for that time.

Don't have any dealings with Tingdene - they are complete cowboys as I found out last year.

Thanks for your comments

I bought a mobile home when I was very young to save for a flat. I really liked it, was happy & safe. It had a lovely garden & I have no regrets. Everyone was lovely

The ground rent was expensive & it always felt a bit damp/musty but bar that, all good!

My friend lost tens of thousands moving out after just a few years. The depreciation issue is very serious.

On the flip side it had tons of facilities to entertain her kid.

I have friends who have a beautiful one, brand new when they bought it to their requested design, feels like your on holiday all the time and I did consider buying one too when older. Things that put me off were very isolated, have to be able to drive or just be happy with online deliveries. The service charge per month is an extra bill on top of council tax and all the utilities and they depreciate in value. The second hand ones up for sale have been up for sale for a long time.

If you're looking for a park home near London, check out ukparklife.com. They list parks across the UK and have some lovely options. We're also on the hunt for a park home, so I thought I'd share the site with you.

There is a home on this site that is 27 years old , the lady is 98 . Owners have said they will not touch it while she is alive and well , but when gone will replace it and sell a new one .

Pardon my ignorance but if you PURCHASED the caravan then its your property right? doesn't it pass on to her relatives the same way a house would.

I can understand if the park says 'the ground space contract was with the deceased and now we want it removed from the park' etc... but surely they cannot 'touch it' before or after death as its not their property?

Perhaps I worded that wrong .. what I was trying to say is that no one is forcing this lady to replace her home or leave due to the age of her home
Of course when she passes , if she has family then they take ownership of this home
The site owner has said they will most likely take the money from that , he will then site a brand new home on that plot

Your talking about holiday homes, not full residential park homes. Residential parks mean it is your primary home for 365 days of the year and comes under the Mobile Homes Act. They are cheaper to run than bricks and mortar. The ground rent on average is £400 a month and some this includes sewage and water rates. Maintenance and upkeep of the site is carried out by an on site Manager. Never buy one that hadn't a full residential license because you won't have any security of tenure. You can check this with the Local Authority Planning Department.