21 February 2020
The simple answer to the question; Can you get a mortgage on a park home? is ‘No’, but that doesn’t mean it’s the end of your dreams to live in or retire to a park home.
Whether you’ve long yearned for a park home by the sea, want to downsize or retire to a more peaceful and less complicated lifestyle, financing a park home isn’t out of the equation.
We’ll explain exactly why a park home mortgage isn’t possible and the other finance options available to you when it comes to buying your residential park home.
Why can’t I get a mortgage on park home?
Park homes are built and sold differently from traditional brick built homes, this is why there is no such thing as a park home mortgage.
When you buy a bricks and mortar house, it is registered with the UK Land Registry, with you as the owner of both the house and land. Therefore, the mortgage is secured against the property’s listing on the land registry. You can’t sell the house, which is a permanent fixture, without selling the land.
When you purchase a residential park home on a park, you only own the home and not the land. The land remains the property of the site owner and is leased to you through a Site Agreement.
How can I finance a Park Home?
Whilst park home mortgages are not possible, there are several ways you could finance your dream park home.
- You could buy a park home outright with savings, a pension or the sale of an existing property.
- Some people utilise the equity in a property by using a part exchange scheme. This can save time and avoid the often feared house buying and selling chain process. If your current property is worth more than your new park home, then you’ll receive the remainder as a lump sum.
- Park home finance is also available through specialist finance companies who help people to buy park homes via a park home loan. These specialists are regulated under the Financial Service Authority (FSA) and understand how park home finance differs to traditional brick built mortgages.
Omar Group does not offer finance or financial advice – when seeking advice, please note that financial advisers are required to be registered with the FCA.