Understanding legal considerations when buying a park home
When you’re considering buying a residential park home, understanding the legal framework is just as important as finding the perfect location. Unlike traditional property purchases, park homes operate under specific legislation that governs everything from your security of tenure to pitch fee increases.
The legal relationship between you and the site owner is fundamentally different from a conventional homeowner’s position. You’ll own the physical structure of your park home, but you’ll be renting the land it sits on through a pitch agreement. This arrangement creates a unique set of legal considerations.
| What You Own | What You Don’t Own |
|---|---|
| The physical park home structure | The land beneath your home |
| Any fixtures and fittings inside the home | Common areas of the park |
At Leedons Residential Park, we ensure all our residents understand their legal position before making a purchase. The security provided by proper legal understanding helps our community of over 500 owners enjoy their homes with peace of mind. You can learn more about our residential park community and how we support our residents through the legal aspects of ownership.
What is the Mobile Homes Act and how does it protect park home buyers?
The Mobile Homes Act 1983 (as amended by later legislation) is the cornerstone of park home law in England and Wales. This legislation provides essential protections for residential park home owners by clearly defining the relationship between site owners and residents.
Key Protection: This Act gives you the right to sell your home on the open market without interference from the site owner, though they are entitled to a commission of up to 10% of the sale price. It also provides security of tenure, meaning you can live in your park home as your only or main residence for as long as you wish, provided you don’t breach your agreement.
The Act requires site owners to provide a Written Statement, which becomes the legally binding agreement between you and them. This document must detail your rights and obligations, including:
- Your right to peaceful enjoyment of your home
- The site owner’s obligations regarding maintenance of common areas
- Procedures for pitch fee reviews (limited to once annually)
- Circumstances under which the agreement can be terminated
Recent amendments have strengthened protections for park home residents, giving the local authority more powers to ensure site owners comply with licence conditions and providing better mechanisms for resolving disputes.
What legal documentation should you check before purchasing a park home?
Before finalising your park home purchase, you must thoroughly review several essential legal documents to protect your investment. The most important document is the Written Statement, which serves as your contract with the site owner and outlines both your rights and responsibilities.
You should also verify the park’s site licence, issued by the local authority, which confirms that the site is legally approved for residential use. This licence contains important conditions about how the park must be operated and maintained.
| Essential Document | Why It’s Important |
|---|---|
| Written Statement | Your legal contract with the site owner |
| Site Licence | Confirms legal approval for residential use |
| Park Rules | Governs day-to-day living; forms part of legal agreement |
| BS3632 Compliance | Ensures home meets residential standards |
| Pitch Fee Details | Shows current fees and history of increases |
| Utility Supply Information | Explains how utilities are provided and billed |
| Age Restriction Details | Confirms any age requirements (typically 50+) |
When buying from an existing homeowner, the law requires them to provide you with a “Buyer’s Information Form” at least 28 days before you commit to purchase (unless a shorter period is agreed in writing). This form contains essential information about the home and the park.
At our established Leedons Residential Park, we ensure all documentation is clear and compliant with current legislation, giving you peace of mind about your purchase.
What are the legal differences between a holiday park home and a residential park home?
The legal distinction between holiday park homes and residential park homes is significant and affects your rights, obligations, and how you can use the property. Residential park homes are designed and legally designated as your permanent, year-round residence and come with important legal protections.
| Feature | Residential Park Home | Holiday Park Home |
|---|---|---|
| Can be used as primary residence | Yes | No |
| Year-round occupancy | Yes | No (typically 10-11 months) |
| Mobile Homes Act protection | Yes | No |
| Construction standard | BS3632 | BS EN 1647 |
| Tax treatment | Council tax | Business rates |
For permanent living, you must purchase a residential park home on a site with a residential licence. At Arden Parks, we operate both holiday parks and residential parks, but we’re careful to maintain the legal distinction. Our residential park homes at Leedons Residential Park provide permanent, comfortable homes with full legal protection for residents aged 50 and above.
How do you legally transfer ownership when buying a park home?
The legal transfer process when buying a park home involves specific forms and procedures designed to protect both buyers and sellers. In England and Wales, this process is governed by regulations under the Mobile Homes Act.
Important Note: Unlike traditional property purchases, there are no mortgages, stamp duty, or legal requirements for solicitors (though you may choose to use one). This simplifies the buying process considerably.
When buying from an existing owner, the transfer follows these legal steps:
- The seller provides you with the Buyer’s Information Form (Schedule 1) at least 28 days before completion, along with copies of the written statement and park rules
- If the park has rules about age restrictions (as our parks do, requiring residents to be 50+), the seller submits a Notice of Proposed Sale (Schedule 2) to the park owner
- On completion day, you and the seller complete an Assignment Form (Schedule 4), which transfers all rights and responsibilities to you
- You pay 90% of the purchase price to the seller
- After completion, you submit a Notice of Assignment (Schedule 5) to the park owner
- You then pay the remaining 10% commission directly to the park owner within 7 days of receiving their bank details
When buying a new park home directly from us at Arden Parks, the process is more straightforward as we’ll provide you with a Written Statement and all necessary documentation. The maximum size of homes allowed at our parks is 50ft x 22ft, and prices for new park homes start from £215k at Broadway Park and £250k at Leedons Residential Park.
What legal rights do you have regarding pitch fees and increases?
Your legal rights regarding pitch fees are specifically protected under the Mobile Homes Act, providing important safeguards against unreasonable increases.
| Park Location | Current Monthly Pitch Fee |
|---|---|
| Broadway Park | £193.77 |
| Leedons Residential | £246.58 |
The law stipulates that pitch fees can only be reviewed once every 12 months, and any increase must be justified. Site owners must give you at least 28 days’ notice using a specific form that details the proposed new fee and the calculations behind it.
By law, pitch fee increases are limited to the rate of inflation (as measured by the Consumer Price Index), unless there’s a compelling reason for a higher increase, such as significant improvements to the park that benefit residents.
Your Right to Challenge: If you disagree with a proposed increase, you have the legal right to challenge it. The site owner cannot simply impose an increase – if you object, they must apply to the First-Tier Tribunal (Property Chamber) for a ruling.
The Tribunal will consider factors including:
- Whether the increase exceeds inflation
- Any decrease in the quality of the site
- Any reduction in services provided
- Whether any proposed improvements actually benefit residents
This legal framework ensures that pitch fees remain fair and predictable, allowing you to budget effectively for your ongoing costs at our residential parks.
How can you resolve legal disputes with park site owners?
When legal disagreements arise between you and the park owner, there are established procedures for resolution that provide protection for residential park home owners. The primary forum for resolving these disputes is the First-Tier Tribunal (Property Chamber) in England or the Residential Property Tribunal in Wales.
| Types of Disputes Handled by Tribunals | Resolution Process |
|---|---|
|
|
Before pursuing formal tribunal action, we always recommend trying to resolve issues through direct communication. At Arden Parks, our on-site managers are available year-round to address concerns promptly and fairly, often preventing disputes from escalating.
For complex disputes, you may wish to consult a solicitor who specialises in park home law. There are also organisations like the Leasehold Advisory Service (LEASE) that provide free advice to park home residents about their legal rights.
At Leedons Residential Park, we pride ourselves on maintaining excellent relationships with our community, ensuring that disputes are rare and quickly resolved when they do occur.
Key legal takeaways for prospective park home buyers
Essential Legal Checklist
- Always verify that the park has the proper residential site licence before purchase
- Thoroughly review the Written Statement and park rules before committing
- Understand that you own the home but rent the land through a pitch agreement
- Be aware that residential park homes must comply with British Standard BS3632
- Remember that site owners are entitled to a maximum 10% commission on resales
- Know that pitch fee increases are regulated and can be challenged
- Check age restrictions – our residential parks require residents to be 50+ with no dependent children
At Arden Parks, our residential park homes come with manufacturer’s warranties and 10-year Gold Shield/Platinum Seal structural cover, providing peace of mind alongside the legal protections. We include connections to mains services, a driveway for two cars, groundwork including skirting, steps and a path around the home, and a garden shed in the sited price.
While legal considerations may seem complex, they’re designed to protect your investment and ensure fair treatment. The residential park lifestyle offers many benefits, including a strong community atmosphere, lower maintenance requirements, and excellent facilities like our indoor heated swimming pool, outdoor bowling green, and community hall.
We recommend consulting with a solicitor who understands park home legislation before finalising your purchase, ensuring you’re fully informed about your legal position and rights as a residential park home owner.
Frequently Asked Questions
| Question | Answer |
|---|---|
| Do I need a solicitor when buying a park home? | While not legally required, consulting a solicitor with expertise in park home legislation is highly recommended. They can review the Written Statement and other documentation, ensuring everything is in order and your interests are protected throughout the transaction. |
| Can I make alterations to my park home after purchase? | Yes, but there are legal limitations. Internal alterations are generally permitted, but external modifications often require written approval from the park owner. At our parks, fences, hedges, or other boundary structures may be erected only with our prior written approval. |
| What happens to a park home in case of relationship breakdown or divorce? | Park homes can be treated as assets in divorce proceedings like any other property. The Written Statement can be assigned to either party or the home can be sold and proceeds divided according to the court’s determination or mutual agreement. |
| Can I run a business from my residential park home? | Generally, no. Most residential park agreements, including those at Arden Parks, explicitly prohibit business activities on the premises. This restriction helps maintain the residential character of the community. |
| What happens to my park home when I die? | Your park home can be passed on through your will like any other asset. The beneficiary can either live in the home (if they meet any age restrictions) or sell it. It’s important to ensure your will clearly addresses your park home to avoid complications for your beneficiaries. |
