Budgeting for Park Home Living: What You Should Know

Understanding the financial aspects of park home living

Park home living offers a unique financial proposition compared to traditional housing. The financial structure differs in several ways, from how you purchase the home to the ongoing costs you’ll need to manage.

Park Home OwnershipTraditional Home Ownership
You own the home structure onlyYou own both the home and the land
Pay ongoing pitch feesNo pitch fees
Lower purchase pricesHigher purchase prices
Generally lower utility billsTypically higher utility costs
Lower council tax bandsOften higher council tax bands

When you buy a residential park home, you’re purchasing the physical home structure but not the land it sits on. Instead, you pay an ongoing pitch fee to the park owner for the right to keep your home on their land. This creates a different financial dynamic that many new residents find refreshing, particularly those looking to downsize from larger properties.

Understanding this distinction is fundamental to planning your finances for park home living. Many of our residents at Arden Parks find that careful budgeting allows them to enjoy a comfortable, community-focused lifestyle while keeping costs manageable.

Proper financial planning becomes particularly important as many park home residents are at or approaching retirement age when income may be more fixed. Taking time to understand all potential costs helps ensure that park home living remains affordable and enjoyable for years to come.

What are the initial costs of purchasing a park home?

The upfront costs of buying a residential park home include several key expenses you should prepare for.

ParkStarting Price
Leedons Residential Park£250,000
Broadway Park£215,000

Unlike traditional home purchases, there’s no stamp duty to pay on park homes, which represents a significant saving. However, there is a 10% commission payable to the park owner when purchasing a pre-owned home from an existing resident. This is a standard industry practice and should be factored into your budget.

Initial costs include:

  • Connection fees for utilities (though at Arden Parks, these are included in the sited price)
  • Any professional fees if you choose to use a solicitor (though this isn’t mandatory)
  • Removal and transportation costs for your belongings
  • Any immediate customisations or furnishings you might want

What’s included in the sited price at Arden Parks:

  • Connections to mains
  • Driveway for 2 cars
  • Groundwork including skirting, steps and path around the home
  • Garden shed (6×8)

It’s worth noting that unlike traditional property, park homes typically don’t appreciate in value over time. This means you should view your purchase primarily as a lifestyle choice rather than an investment vehicle.

How much should I budget for ongoing park home expenses?

Ongoing expenses for park home living need careful consideration to ensure comfortable living without financial surprises.

Expense TypeDetails
Pitch Fees
  • Broadway Park: £193.77/month
  • Leedons Residential: £246.58/month
  • Subject to annual reviews, typically in line with inflation
UtilitiesElectricity, water, and gas (mains natural gas is available at Leedons Residential)
Council TaxMost park homes fall into Band A (lower than traditional housing)
InsuranceSpecialised buildings and contents coverage for park homes
MaintenanceRegular upkeep essential to preserve condition and value

Many of our residents report that their overall living costs are lower than in their previous homes. The smaller, more efficient spaces generally require less energy to heat, and the lower council tax band provides additional savings.

We recommend setting aside a maintenance fund for periodic exterior painting (typically needed every three years after the initial two years) and other maintenance tasks to keep your park home in excellent condition. Well-maintained homes not only provide a better living experience but also retain more of their value should you decide to sell in the future.

What financing options are available for park homes?

Financing a park home differs significantly from traditional property purchases. Standard residential mortgages are generally not available for park homes because you own the structure but not the land it sits on.

Common financing methods:

  • Using proceeds from the sale of a previous property
  • Savings or investments
  • Specialised park home loans from dedicated lenders
  • Personal loans (for smaller amounts)
Financing TypeCharacteristics
Specialised Park Home Loans
  • Higher interest rates than traditional mortgages
  • Shorter repayment terms (10-15 years maximum)
  • Larger deposits typically required
Traditional MortgagesGenerally not available for park homes
Arden Parks Direct FinancingNot offered – all financing must be arranged before purchase

Many of our residents at Arden Parks choose to downsize from larger properties, using the equity released to purchase their park home outright. This debt-free approach provides financial security, particularly for those in or approaching retirement.

It’s important to note that we don’t offer financing directly through Arden Parks, nor do we provide flexible payment options or financing solutions. This means you’ll need to have your financing arranged before proceeding with a purchase. This straightforward approach helps ensure all our residents are financially prepared for park home living.

How can I reduce the cost of park home living?

There are several effective strategies to keep your park home living costs manageable while enjoying all the benefits of this lifestyle.

Energy efficiency improvements:

  • Using energy-efficient appliances
  • Installing additional insulation where possible
  • Being mindful of heating usage with programmable thermostats
  • Taking advantage of our maintenance advice to keep your home performing at its best

Cost-saving opportunities at Arden Parks:

AmenityBenefit
Indoor heated swimming poolIncluded in pitch fees – no gym membership needed
Outdoor bowling greenFree recreational activity
Community hallSocial activities without additional venue costs
Games roomEntertainment at no extra cost
Tennis courtFree fitness and recreation

Regular maintenance plays a key role in cost management. Keeping up with smaller repairs prevents more expensive problems later. For example, maintaining the exterior finish of your park home according to the recommended schedule (painting 2 years after build and then every three years) helps avoid more costly structural issues.

Many of our residents also find that downsizing to a park home naturally reduces their consumption habits, leading to less spending on unnecessary items due to more efficient use of space. This “less is more” approach often results in unexpected financial benefits beyond the direct housing costs.

Are there any hidden costs I should know about?

Transparency is important when considering park home living, so we want to ensure you’re aware of all potential costs.

Additional expenses to consider:

  • Commission on sale: Should you decide to sell your park home in the future, 10% of the sale price is payable to the park owner
  • Maintenance requirements: Specific maintenance schedules must be followed to comply with park rules and preserve your home’s condition
  • Insurance requirements: Specialised park home insurance is necessary and may cost differently than traditional home insurance
  • Rule compliance costs: Any modifications to your home or plot require written approval from the park
Cost ConsiderationImpact
Pitch fee increasesAnnual reviews in line with Retail Price Index (RPI)
DepreciationPark homes typically lose value over time (unlike traditional properties)
Maintenance scheduleExterior painting after 2 years, then every 3 years
Park rule compliancePotential costs to maintain standards and regulations

It’s also worth noting that when selling a park home, the value typically depreciates over time unlike traditional bricks and mortar properties. This should be considered as part of your long-term financial planning.

Before purchasing, we recommend carefully reviewing the Written Statement Under the Mobile Home Act 1983, which outlines your rights and responsibilities. This document details the legal relationship between you and us as the park owner and helps clarify any potential costs or obligations.

At Arden Parks, we value transparency and are always happy to discuss any concerns about costs or financial planning for your park home living experience.

Key takeaways for successful financial planning in park home living

Successful financial planning for park home living combines understanding both immediate and long-term considerations.

Essential budget components:

  • Monthly pitch fees (£193.77 at Broadway Park or £246.58 at Leedons Residential)
  • Utility costs appropriate to your usage patterns
  • Council tax (most homes fall into Band A)
  • Insurance premiums for specialised park home coverage
  • A maintenance fund for periodic upkeep (particularly exterior painting)
  • General living expenses
Financial Planning PrincipleApplication to Park Home Living
Realistic expectationsUnderstand that homes typically depreciate rather than appreciate
Long-term planningConsider how retirement income will cover ongoing costs
Value optimisationTake advantage of inclusive facilities and amenities
Lifestyle benefitsFactor in community, environment and age-appropriate facilities (50+)

First, approach your park home purchase with realistic expectations about costs and value. Remember that while the initial purchase price might be lower than traditional housing, you need to factor in ongoing pitch fees and the likelihood that your home will depreciate rather than appreciate in value over time.

Plan for the long term by considering how your income might change, particularly if you’re approaching retirement. Many of our residents find park home living provides excellent value and helps stretch retirement income further, but advance planning is essential.

Finally, consider the lifestyle benefits alongside the financial aspects. The close-knit community, peaceful environment, and age-appropriate facilities create a living experience that many of our residents find invaluable, complementing the financial advantages of park home living.

Frequently Asked Questions

QuestionAnswer
How does park home value change over time?Unlike traditional property, park homes typically depreciate over time. The rate of depreciation depends on factors including the home’s condition, park location, and market demand. Regular maintenance can help slow depreciation, but you should view your purchase primarily as a lifestyle choice rather than an investment vehicle.
Can I rent out my park home to generate income?No, sub-letting is strictly forbidden at Arden Parks residential parks. Park homes must be used as your only or main place of residence according to our licence agreements. This policy helps maintain the community atmosphere and residential character of our parks.
What happens to pitch fees over time?Pitch fees are typically reviewed annually and may increase in line with the Retail Price Index (RPI). These increases are regulated by legislation, providing some protection for residents. It’s important to factor potential increases into your long-term financial planning, especially if you’re on a fixed income.
Are there any tax advantages to park home living?Park homes are exempt from stamp duty when purchased, which can represent a significant saving compared to traditional property. Additionally, most park homes fall into lower council tax bands (typically Band A at our parks), resulting in lower annual council tax payments compared to many traditional homes.
What insurance do I need for a park home?You’ll need specialised park home insurance that covers both the structure and your contents. Standard home insurance policies aren’t suitable due to the different construction methods and materials used in park homes. Specialised insurers offer policies designed specifically for park homes that provide appropriate coverage.
Adenparks

Email

amie@ardenparks.co.uk
jacqui@ardenparks.co.uk

Phone

Amie - 07415 343298
Jacqui - 07415 343258

Need some help with Residential Park Homes?

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