Looking to move from your family home to a residential park home but not sure how to finance it? For many over-50s, the equity built up in your current property represents an opportunity to fund your next chapter in life without taking on new debt. At Arden Parks, we’ve helped hundreds of residents make this transition smoothly.
Key Takeaways:
- Several equity release options exist for funding your park home purchase, including downsizing, lifetime mortgages, and retirement interest-only mortgages
- The average UK homeowner can typically release between £100,000-£200,000 from their property, easily covering the cost of a quality residential park home
- Moving to a residential park home can significantly reduce your monthly living costs, with council tax typically band A and lower utility bills
- Our residential park homes at Leedons Residential Park and Broadway Park start from £250,000 and £215,000 respectively
- The entire process from valuing your current home to moving into your park home typically takes 3-4 months
Understanding equity release options for your family home
If you own your family home outright or have a small mortgage remaining, you’re sitting on a valuable asset that can fund your next move. There are several ways to tap into this equity, each with its own advantages:
Selling and downsizing
The simplest option is to sell your current home and use the proceeds to purchase a residential park home outright. This creates a clean break with no ongoing mortgage payments. For many of our residents, this approach provides both financial freedom and the opportunity to release extra cash for retirement.
With new residential park homes at Broadway Park starting from £215,000 and at Leedons Residential Park from £250,000, selling a larger family home often leaves substantial funds available for enjoying retirement.
Lifetime mortgages
If you prefer not to sell immediately, a lifetime mortgage allows you to borrow against your home’s value while still living there. The loan and interest are repaid when your home is eventually sold. This option works well if you want to secure your park home while waiting for the right time to sell your current property.
Home reversion plans
With this option, you sell part or all of your home to a reversion company but retain the right to live there. When you decide to move to your park home and sell your house, the proceeds are split based on the percentage you’ve sold.
Retirement interest-only mortgages
These mortgages allow you to pay just the interest on your loan each month, with the capital repaid when you sell your home. They can be useful for bridging the gap between purchasing your park home and selling your existing property.
How much equity can you release and what can it buy?
The amount of equity available in your home depends on its current market value minus any remaining mortgage. With the average UK house price currently around £280,000, many homeowners find they can release substantial funds.
Calculating your available equity
A simple calculation can help estimate what you might be able to release:
- Current home value: £280,000
- Remaining mortgage: £40,000
- Available equity: £240,000
This available equity is typically more than enough to purchase a beautiful residential park home with us. At Broadway Park, our residential park homes start from £215,000, while at Leedons Residential Park, they begin at £250,000.
What your budget can secure
Here’s what different budget ranges can buy at our residential parks:
- £215,000-£250,000: A lovely new residential park home at Broadway Park with connections to mains, driveway for 2 cars, and garden shed
- £250,000-£300,000: A spacious new residential park home at Leedons Residential Park with all connections and groundwork included
- £300,000+: Our premium show homes, including our top model at £318,000, offering additional features and premium specifications
All our residential park homes include connections to mains, driveway for 2 cars, groundwork including skirting, steps and path around the home, and garden shed (6×8).
Step-by-step process to release equity and purchase a park home
Moving from your family home to a residential park home involves several key stages, but we’re here to make it as smooth as possible:
1. Valuing your current property (1-2 weeks)
Start by getting 2-3 estate agents to value your current home. This gives you a realistic idea of how much equity you could release. For the most accurate valuation, tidy your home and fix any minor issues before valuations.
2. Exploring our residential parks (1 day)
Visit our residential parks to see the lifestyle and homes available. Both Leedons Residential Park and Broadway Park offer the chance to tour available plots and show homes, allowing you to visualize your future home.
3. Choosing your equity release method (1-2 weeks)
Based on your financial situation and preferences, decide whether you’ll sell your home first or use another equity release method. If you’re considering options beyond straightforward selling, we recommend speaking with an independent financial advisor.
4. Selecting your park home (1 day)
Choose your preferred residential park home model and plot. Remember that our homes can be up to 50ft x 22ft in size and come with numerous customization options.
5. Manufacturing and site preparation (12-16 weeks)
Once ordered, your residential park home takes approximately 12 weeks to be built by the manufacturer. After delivery, it takes up to 16 weeks to complete connections and make your park home ready for you to move in.
Financial benefits of moving from a family home to a park home
Beyond the initial equity release, moving to a residential park home offers significant ongoing financial advantages:
Lower council tax
Our residential park homes typically fall into council tax band A, the lowest band, resulting in substantial annual savings compared to larger family homes.
Reduced utility costs
Modern residential park homes are well-insulated and energy-efficient, leading to lower heating bills. At Leedons Residential Park, homes benefit from mains natural gas connections.
Minimal maintenance expenses
With a new residential park home, you’ll spend far less on maintenance and repairs compared to an older property. Our homes come with manufacturer’s warranties and 10-year Gold Shield/Platinum Seal structural cover for peace of mind.
Monthly site fees
Instead of various property expenses, you’ll pay a simple monthly site fee: £193.77 at Broadway Park or £246.58 at Leedons Residential. This covers the upkeep of communal areas and access to facilities like our indoor heated swimming pool, outdoor bowling green, community hall, tennis court, and more.
Common questions about equity release for park home purchases
Can I get a mortgage for a residential park home?
Traditional mortgages aren’t available for residential park homes. Most of our residents purchase their homes outright using equity from their previous property. This approach offers the benefit of being mortgage-free in retirement.
What are the tax implications of releasing equity?
If you’re selling your main home, you typically won’t pay Capital Gains Tax on the proceeds. However, tax rules can be complex, so we recommend consulting with a financial advisor about your specific situation.
Are there age restrictions for living in your residential parks?
Yes, residents must be 50 years or older to live in our residential parks, and no dependent children are permitted to live on the park. This helps maintain the peaceful, community-focused environment our residents value.
Can I rent out my residential park home?
No, subletting is not permitted. Your residential park home must be used as your only or main place of residence. This policy helps maintain the community feel and security of our parks.
How long does the whole process take?
From initial property valuation to moving into your new residential park home, the process typically takes 3-4 months. The manufacturing of your park home (12 weeks) and site preparation (up to 16 weeks) are the longest parts of the timeline.
Ready to explore how releasing equity from your family home could fund your move to one of our beautiful residential parks? Contact us today to arrange a visit to Leedons Residential Park or Broadway Park and see what your new lifestyle could look like.
