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Static/Mobile/Park homes any good?
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tbourner
Posts: 1,434 Forumite
My MIL is having a bit of bother following divorce and is looking into selling up their house (large 3 bed 3 story town house) as it's too much money, time and effort to upkeep on her own. She'll get around £50k equity out of the deal (after paying off my FIL) and is looking into a mobile home (or whatever they're called?).
They're £70k or thereabouts in a new built area close to where she lives now, apparently very nice with GFSH, parking spaces, sea views, gated etc. She'll likely only be there for 3 years ish, but there are problems; for example they'd have to find somewhere else to live in Feb each year when the park closes!
Trouble is renting would be 150% of what she pays now into the mortgage, and buying one of these static things would likely give her nearly £300 a month extra (rough calculations) depending on what mortgage she gets. I guess these places lose value rather than gain? What kind of timeframe do they become worthless at resale?
Sorry I don't have any other info relating to any other fees there may be, hopefully we'll be going to see them next week so I can get a feel for what they're like.
They're £70k or thereabouts in a new built area close to where she lives now, apparently very nice with GFSH, parking spaces, sea views, gated etc. She'll likely only be there for 3 years ish, but there are problems; for example they'd have to find somewhere else to live in Feb each year when the park closes!
Trouble is renting would be 150% of what she pays now into the mortgage, and buying one of these static things would likely give her nearly £300 a month extra (rough calculations) depending on what mortgage she gets. I guess these places lose value rather than gain? What kind of timeframe do they become worthless at resale?
Sorry I don't have any other info relating to any other fees there may be, hopefully we'll be going to see them next week so I can get a feel for what they're like.
Trev. Having an out-of-money experience!
C'MON! Let's get this debt sorted!!
C'MON! Let's get this debt sorted!!
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Comments
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Where is she getting the other £20k from? Can you mortgage them?
£70k sounds cheap for a park home. I'm not too far from you and we have lots round here but they are more like £110k.0 -
Why would you not be able to mortgage them? I'd assumed she'd be getting a mortgage, which at a guess would be £150 a month, if she can't then the idea's probably out the window. Mind you she might be able to get a personal loan if she pays off all her current debts with the house sale.Trev. Having an out-of-money experience!
C'MON! Let's get this debt sorted!!0 -
The type where you have to get out for a month (or so) per year is more likely a "static caravan". Often on a "holiday" site. Which people then use most of the year if it suits them.
Check the ground rent/site fees...some run to thousands per annum.
Resale, the site owner will be glad to take it off her hands for a pittance, I'm sure.
Why only 3 years? Why not do the move that will happen in 3 years, now ?
When you factor in the buying and selling costs, depreciation, etc it won't help keep her equity intact.Act in haste, repent at leisure.
dunstonh wrote:Its a serious financial transaction and one of the biggest things you will ever buy. So, stop treating it like buying an ipod.0 -
Her daughter is at school, she's going to college nearby, after that MIL wants to move elsewhere like New Forest or somewhere nice.CloudCuckooLand wrote: »Why only 3 years? Why not do the move that will happen in 3 years, now ?
I was going to suggest she rent, and stick the money in an account somewhere and don't touch it, she'll need to do a strict budget for the next 3 years though!!CloudCuckooLand wrote: »When you factor in the buying and selling costs, depreciation, etc it won't help keep her equity intact.Trev. Having an out-of-money experience!
C'MON! Let's get this debt sorted!!0 -
Hi OP,
I would have to say that one major draw back of static caravans if that very much like cars, they depreciate in value especially if bought brand new, it might not be ideal for only a couple of years chances are it would lose nearly 50% of its purchase price in that time. As far as I know, mobile homes and things of this nature you can't get a mortgages on, it would be more a finance or hp type situation.
Gem0 -
I think this is an example:
http://www.rightmove.co.uk/property-for-sale/property-30792971.html
Not sure though, I don't have any details about the actual location!Trev. Having an out-of-money experience!
C'MON! Let's get this debt sorted!!0 -
after that MIL wants to move elsewhere like New Forest or somewhere nice.
She's going to need an awful lot more than £50k then...!
Fees and costs of buying/selling/mortgaging could be used instead to fund 6 months rent...
The other 2.5 years of rent would pay for themselves by avoiding a property type which depreciates...
Unless she looks around existing sites and finds a re-sale, rather than buying new.
RM link - "character property", "discerning buyer" - LOL.Act in haste, repent at leisure.
dunstonh wrote:Its a serious financial transaction and one of the biggest things you will ever buy. So, stop treating it like buying an ipod.0 -
Hi OP,
The picture on rightmove shows a Pemberton Abington (nice caravan and it is very sad that I know that just by looking at the picture) but definately not worth a 60K plus pricetag the van at the factory would cost you just under 35K. That veranda with it wouldn't cost more that 4-5K to build, most sites will only charge around about 5K for delivery and fees and things so it shouldn't be up for more than 45K all in. guranteed though in 3 years time if she bough for 45K she wouldn't be offered more that 15-20k for it. Its just the way it is with this type of thing they are more similar to cars than houses in there worth. I would have to 2nd renting for a couple of years, she will be much better off in the long run.
Gem0 -
As a "holiday restricted" site, she might find she can't stay there (live in it) for the months the site's open. She'd need to check if that were allowed (very few do allow it). She might, for example, have to move out for 1-2 nights every 3 weeks. Or she might have to keep proving that she does have another main address and the mobile's not her address.
Site rent can be £3-4,000/year. Some I am aware of are even £6,000 just because they have a sea view.
She should check how long it has a license for, it's common to only have 10-12 years on a site before it has to be removed and you have nothing to show for it.
When she sells, as it's not a residential site, the owner will most likely take 15% of the resale value.
As a holiday site, she won't be able to receive mail there either, which is another nuisance.
When she buys it'll have the first year's site fees paid - but when she sells she'll have to be paying that out for the buyer (it's the norm for these types of mobile homes).
She won't be able to get a mortgage, it'll have to be a personal loan.
Overall, my advice would be not to do it. financially the numbers won't stack up. It's better to buy a proper bricks/mortar home that she can live in all year round, doesn't have to pay big site fees on and doesn't have to hand over 15% when she sells.0 -
Most mobile/park home parks are for over 55s without children, so she would have difficulty finding one that would accept her. An 11 month occupancy holiday park would be unsuitable because after 3 years the depreciation of the holiday home would be quite dramatic and site rent could be up to £4K pa. Not to mention where her and daughter would live for the 12th month.
Have you/she looked at house prices in the New Forest and immediate area recently??If you are querying your Council Tax band would you please state whether you are in England, Scotland or Wales0
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