Buying a park home (with "mortgage")?

andre_xs

Hi All,
We're just looking for something to move in, and unfortunately we are (a) rather noise sensitive, (b) have 2 kids (i.e., need 2-3 bedroom), and (c) don't have too much money in an expensive area...

Thus, we try to think a bit out of the box, and quite close is a park home area, which doesn't seem to have an age restricition (i.e. not just for retirement). Thus, we may be able to get a detached "house" (noise problem solved) with potentially a decent size (there are some bigger ones), and could stay in the area (daughter doesn't need to change school, etc.)

Presently, nothing is on offer, but I thought I try to get some info now before something may be available, so that we are prepared.

We'd need a mortgage to buy - I know that you can't get a traditional mortgage, but I've read that there are some lenders who would lend up to 80% of a park home's value.

We are FTB, moved to the UK 2 years ago and therefore are not on the property ladder and don't have big savings...

What do you think of this idea?

Andre

theartfullodger

Park homes are not the best for noise: They go down in value over time: Fees may be significant & when you sell park owner may be entitled to up to 10%(!).

http://england.shelter.org.uk/get_advice/other_types_of_accommodation/mobile_homes

http://lmgtfy.com/?q=mortgage+park+home

teddysmum

Some also insist that you remove after it reaches a certain age (very expensive, plus you'd need to find a site to take it) or buy a replacement from the site owners.

david29dpo

Dont do it! To many scams and you buying a glorified shed that drops in value faster that a tarts knickers.

andre_xs

Ok, thanks for the replies. It was worth a shot :-)
Andre

kinger101

I agree with what everyone has said. Park homes are heavily depreciating assets. Aside from the fact that the box on the land is worth a fraction of the purchase price, they are also ridiculously overpriced given you're getting a short lease on a tiny plot of land for which you'll have to pay really high services charges.

Richard_Webster

I can't imagine why a Park Home would be considered good security by a mortgage lender. If a borrower defaults what are they left with that they can sell?

lincroft1710

Richard_Webster wrote: »

If a borrower defaults what are they left with that they can sell?

A park home worth less than it was purchased for.

I agree, given that lenders don't like houses without a kitchen, why would they lend on something which could be disconnected from the mains services, loaded on to a transporter and driven away

Freecall

lincroft1710 wrote: »

A park home worth less than it was purchased for.

I agree, given that lenders don't like houses without a kitchen, why would they lend on something which could be disconnected from the mains services, loaded on to a transporter and driven away

Or leases with less than 80 years to run.

(And that is with a statutory right for the leaseholder to seek an extension)

RAS

bradelyjacc wrote: »

According to me park homes are not best dealing offers , They makes some issues when you are living him with family , I suggest to firstly you think proper then done any deal.

If you are based in Alabama, note that the rules in the UK are very different. Not good but different.

PasturesNew

As a rule you cannot get a mortgage on a mobile home. You would need a personal loan, which might have a requirement of a 25% deposit.

That's the "general rule" for these things.

It is not permanent, you have no rights to stay there beyond what's in the licence to occupy the plot. The site owner could sell up the land to a developer and give you the legal amount of notice required to move your park home off the site (while you're protected to some degree if it's a residential park home, that doesn't mean it can't happen).

They are not the 'solution' they appear.... if it were that easy we'd all be living in them. I will say that I did used to live in one ... I sold it and moved out, but a few years later the whole site was cleared for a "new development", I often wonder what'd have happened if I'd stayed. The site owner was also an omnipresent ogre, who interpreted the site rules in their own fashion and bullied residents.