Park home living

Legal pitfalls, of course, about ownership of the park home but that aside, if you are still working I assume you are still in your 60s or maybe 70s.

£100,000 isn’t a lot to last the rest of your lives if all you have is State Pension. And don’t forget that as savings, it will affect any claim you might otherwise have for Pension Credit, which itself opens the gateway to other benefits, such as, extra help with heating costs and dental and eye care which can run into several hundred pounds a year.

I have a friend who lives in a park home. While it’s pleasant enough on a reasonably well-kept part of the site, it’s very compact and she finds it a struggle living in such close confines with her partner.

She has shown me around other parts of the site. One part is very depressing, what residents call “The Graveyard”. The homes and gardens are very run down, overgrown and tatty, occupied by very old people who no longer have the resources to replace what was always going to be a depreciating asset.

The site itself is also very isolated (which I know not all sites are) but I did feel very sorry for the old people who are trapped there once they can no longer drive or afford a car or afford to replace the park home itself.

Another friend who bought a park home so he could give his house to his daughter and young family says how cold it is in winter. Something to do with it being off the ground and poorly insulated. Lots of information online about this.

I don’t have a lodge etc but the local park. The site rental is apparently between 11,000 and 15,000 a year with council tax on top. Which is more than I thought. Ok it is a holiday area but it show prices vary tremendously and need to be checked

Can't comment on the park home aspect but I rented one in my 20s for about 4 years, I got keen on the idea of bricks and mortar again after that, even though the location was fantastic. Heating costs were higher and you will need to climb the steps up to them which is mostly fine except in later old age or if you have just come out of hospital.

Also some are somewhat out of the way of good transport links. In earlier retirement great, but wouldn't want to do it later. As I understand it, it is pretty expensive to sell them as the site takes a percentage so if you changed your mind, it wouldn't be ideal.

If it were me, I would try to have bricks and mortar and consider equity release instead. That said a neighbour recently moved to one as she was in an upstairs flat and was waiting on knee operations so felt that a smaller climb upstairs was better.

There is a massive difference between a holiday park (with caravans and lodges) and a park home, which tends to have lodges and chalets, and more permanent structures.

The laws around them are different, and park home owners have rights that holiday park owners don't. What unites them is that there are areas that are very different from non-park living, and these are not immediately obvious to potential buyers.

I know a lot about the holiday park sector, and not a lot about park homes, but enough to advise caution. Many (not all) park owners in both sectors are unscrupulous, and there is not a robust legal framework to protect owners, despite the fact that they have paid significant sums for their units. Not only that, but the parks do get bought and sold, so a 'family run' park can become part of a chain overnight. This happened to ours, and the difference it made is huge.

Just to give you an “idea” of potential running costs. We bought our “lodge” outright and visit most weekends for two/three nights throughout the year.

The site fees currently stand at £5,000 a year, though we had big discount for year 1 and a smaller 1 for year 2.

Those who pay for everything by DD pay roughly £650 a month, which covers absolutely everything bar gas. Our gas current is £104 a “bottle” currently a bottle lasts us about two months in the summer and one month in the winter. More if we are not there as much as every week.

However, if you do go to a truly residential site you might have slightly higher costs as you’ll have to pay your local council, council tax. Ours is not a “designated” 52 week a year residential site so we have to provide proof of being on the election role each year.

Toetoe

I've thought of this often but 3years on still hesitant . I'm told the homes are colder in the winter and don't retain the heat . The park ground and maintenence rents are as expensive as the council tax . Also I did read that the roofs need maintenence every 2 years . There are some lovely ones with gardens and beautiful sites but I'm still wavering .

Our “lodge” (which is essentially a static caravan with a “skirt” and decking), has full central heating in both bedrooms and living areas, we have two “master” bedrooms, both en-suite, both bathrooms have heated towel rails and our living area also has an electric “fake” wood burner. We’ve had it for 2.5 years now and it’s very toasty and cosy in the winter.

Static caravans have come on a very long way since back in the day.

And Cossy too .

We have done this Summerskies but not on a park home site.

We own a flat which we used to rent out and sold our large house to upgrade from a single to a double lodge on a holiday site. We live here, but need to have the flat as our permanent address which also enabled us to keep a few more possessions that we otherwise wouldn't have had room for.

Doodledog has given some salient advice; make sure you do your homework.

We too have a lodge, on an owners only site, it’s small and quiet and has a bus stop right outside and a local train service serviced by said bus. It’s our holiday home.

We are owned by a large group who mainly do “holiday rentals and parks” so we have financial stability.

We bought a brand new lodge, at an extremely good price, which included the first year site fees and all furniture, fixtures and fitting and white goods, including dishwasher and washing machine.

Ours isn’t strictly speaking fully residential, it closes in February every year for two weeks, but I’d say 80% of those there do live there full time.

We have a licence on our lodge for 30 years from date of purchase and no obligation to replace our van during that period.

My advice:-

Don’t go with an independent site unless you’ve had a solicitor check out who actually owns the land and it’s owned and licensed legally.

Check out licence agreement on van.

Check out exactly what is included in site fees.

Make sure it’s a 52 weeks of the year licenced residential site.

Check whether pet friendly (we have a dog).

Talk to other van owners there.

Check the age criteria.

Visit several times before committing.

Be aware they do try to “hard sell”.

Many many people do this to release equity and it can work very well.

Be very aware, unlike “houses” vans depreciate like cars.

Check the selling process.

Good luck

Some sites insist you remove the caravan after 10 years at your cost. Others aren't open all year round. If it's a lodge, there might be different rules. I think Doodledog makes excellent points

I've thought of this often but 3years on still hesitant . I'm told the homes are colder in the winter and don't retain the heat . The park ground and maintenence rents are as expensive as the council tax . Also I did read that the roofs need maintenence every 2 years . There are some lovely ones with gardens and beautiful sites but I'm still wavering .

I haven't done it, but I do have a lodge on a holiday park, and would advise the following:

Get a solicitor who knows about the sector (these are rare). There are numerous pitfalls that you could fall into, so don't sign anything until you are certain that you understand the implications.

Don't assume that the rent covers council tax responsibility. If you are not paying CT in your own name, you are probably on a holiday park, which is a whole different ballgame - do not even consider living on one, as it is illegal to do so, and you risk eviction with short notice if you try.

Check the actual resale figures for units on the park you are considering. Don't take the word of a salesman - ask to see real examples and ask to speak to residents who have bought and sold.

Ensure that your contract covers what happens if you are asked to move your pitch. You could, say, have a sea view when buying, but find yourself next to the bins a couple of years later unless there is a clause that protects you from this.

Check with the solicitor that if the park changes ownership you will maintain the contract you sign when you buy. Remember that you will own your unit, but not the land it sits on, which massively reduces your rights. Some rights will be included in your contract (can you keep pets? do you have a private garden? outside storage rules? can grandchildren stay over?) but you need to be sure that these can't be rescinded if the park changes hands.

Get a copy of the main legislation that covers park homes. They are different from holiday parks - owners on park homes have more rights - but you need to be clear about things like ground rent increases, and who is responsible for what. Water rates, gas charges, site facilities such as shops or laundries, street lighting - who determines the prices of these and who pays for maintenance?

That's all I can think of for now, but it all boils down to 'proceed with caution', I'm afraid.

Be careful.

Watch this.

www.youtube.com/watch?v=cJ73arkztNE

I think this will be a very mixed bag.
My friends did this and are happy but they have had a battle with the site over facilities