Considering buying a park home? Key things to consider
Are you looking to downsize? Maybe you are retiring and want to get away from urban stress? Or are you seeking a community of like-minded individuals? Well, you may want to consider a park home. Park homes are often an appealing alternative to a traditional home. They tend to be more affordable and offer a simpler way of living for people who want to get away from the hustle and bustle of city life. However, buying a park home may not be as simple as it seems and can carry with it unique legal risks. There are, therefore, some important considerations to make before you begin your search for your perfect park home. Understanding ownership When purchasing a park home, you are not buying the plot of land where it sits, you instead are purchasing the structure itself. Typically, you cannot buy a park home with a mortgage, the property must be bought outright. The plot will belong to the site owner, so you will have to pay them fees to keep your home there. These prices can vary and be subject to change, so it is imperative to check how much this will cost beforehand and what the agreement allows the landlord to do. It is also important to consider that plot owners may also charge an additional fee for water, gas and electricity, which site owners will supply directly to the home. This may limit your ability to secure lower-cost options, which is why it should be checked and considered before you proceed with a purchase. The site may also have rules that you must comply with. If you don’t, the site owner can issue warnings and can even take legal action through a tribunal, and your agreement can be terminated. This is why you must seek independent legal advice before purchasing a park home property. Is a park home classed as real property or personal property? Property is often described as either real property or personal property. Real property generally means land and anything legally forming part of it, such as buildings or structures fixed to the land. Personal property usually means movable items or assets that do not form part of the land. For park homes, this distinction is important. Although the home may be positioned on a base and connected to services, the buyer will usually be purchasing the park home itself, not the land beneath it. The pitch will usually remain owned by the site owner and occupied under a pitch agreement. This is different from buying a conventional bricks-and-mortar property, where the buyer would normally acquire either a freehold or leasehold interest in land. Whether something forms part of the land can depend on factors such as how firmly it is attached and why it has been attached. However, with most park home purchases, the key point is that the home is treated separately from the land and the homeowner’s rights usually come from the pitch agreement and the relevant mobile homes legislation. This can affect both funding and the checks required before completion. As buyers are usually acquiring the park home rather than a legal interest in registered land, park homes are often not mortgageable in the same way as traditional properties. Buyers should confirm how they intend to fund the purchase at an early stage. Buyers should also understand the ongoing obligations that come with occupying the pitch, including pitch fees, site rules, utility arrangements and any restrictions contained in the agreement. A solicitor can explain how these issues apply to the particular park home, review the pitch agreement and site documentation, and advise on the legal position before you commit to the purchase. Can I live in a park home year-round? Depending on the site, you may be able to live in your park home year-round, but every site has different rules and you should check before committing to a purchase. This typically depends on one condition, that it is situated on a site with a permanent residential licence. The properties on this site must be built to British Standard BS 3632 for permanent living. For a site to qualify for this, it must have high-grade thermal insulation in walls, floors and roofs. Additionally, there should be high ventilation, such as trickle vents, to prevent condensation and maintain air quality. Sites must also adhere to strict safety rules including fire safety measures, escape routes and electrical/gas safety guidelines. How can a solicitor help? It is strongly advised to seek advice from a solicitor when purchasing a park home as the process can often be confusing. Our specialist team of solicitors will support you with this by reviewing the Mobile Homes Act pitch agreement, checking the local authority licence, verifying site rules and ensuring that the legal assignment of ownership is handled correctly. We always work closely with the seller, estate agents and site owners to ensure that the process is straightforward. Considering your next steps, get in touch with our team today for support.
