Finance is readily available from specialised companies, regulated under the Financial Services Authority, for the purchase of a residential park home or luxury lodge, however, traditional mortgages which are used to buy a bricks and mortar home, are not available.
The mortgage on a traditional bricks and mortar home would be secured against the property’s listing on the land registry. When a park home or lodge is purchased, you are acquiring that property permanently and outright. The lease for the land it is situated on is for a fixed period of time, and in the case of leisure homes this is often only for part of the year.
The details for the lease of the land on which your home is sited would be included in your licence agreement. The length of your site lease will almost certainly impact on the terms upon which you can finance your property. There are a number of specialist finance providers in the marketplace who understand park homes and lodges and how they differ from traditional brick built properties. Finance is typically available for up to 80% of the value of the home with the loans available generally up to 25 years. Interest rates will vary based on personal circumstances, the amount of the loan, the length of the loan and the value of the property.
When looking at finance on park homes or lodges, we recommend you shop around and obtain multiple quotes for the finance you require.
You may wish to contact the following finance providers for advice:
B2B Cash Flow Solutions
Manor Farm Barns
Tel: 01508 494 345
Zebra Finance Ltd
Wyvern Business Park
Tel: 01332 680 400