Buying a residential park home offers an attractive option for those looking to downsize or find a peaceful community after 50. But understanding how to finance this purchase can be confusing – especially since park homes don’t follow traditional property financing rules.
If you’re considering making one of our beautiful residential park homes your next permanent residence, you likely have questions about your financing options.
- Key Takeaways:
- Traditional mortgages aren’t typically available for park homes due to their legal classification
- Specialist lenders offer alternatives designed specifically for park home purchases
- Many over-50s buyers use equity release, cash from property sales, or savings
- Age factors can actually work in your favour when seeking park home financing
- We help connect prospective residents with appropriate financing solutions
Understanding park home financing basics
When you buy a residential park home, you’re buying something legally different from traditional bricks and mortar housing. Park homes are classified as “personal property” rather than real estate. This important distinction affects how they can be financed.
Unlike conventional homes that come with land ownership, when you purchase a residential park home, you own the structure itself while paying a pitch fee to the park owner for the land it sits on. At our Leedons Residential Park and Broadway Park, these fees are £246.58 and £193.77 respectively.
This unique ownership structure means that standard mortgage lenders typically don’t offer products for park homes. But this doesn’t mean financing is impossible – far from it. The options available simply differ from those you might be familiar with from traditional house buying.
For buyers over 50, this can actually present advantages. The financing solutions available for park homes often cater specifically to your life stage, with many lenders recognising that retirees or those approaching retirement have different financial circumstances than younger buyers.
Can you actually get a mortgage for a park home?
The short answer is: not in the traditional sense. Standard high-street mortgage lenders don’t typically offer mortgages for residential park homes because they can’t secure a legal charge against the property in the same way they would with bricks and mortar homes.
However, specialist lenders do offer financial products designed specifically for park home purchases. These aren’t technically mortgages, but they function similarly by providing a loan secured against the park home.
For buyers over 50, these specialist lending options often come with specific advantages:
- Loans typically available for up to 80% of the purchase price
- Repayment terms that accommodate retirement planning
- Consideration of pension income in affordability assessments
- No maximum age restrictions on some products
These specialist lenders understand that your financial situation may be different from younger buyers. They recognise that while you might be retired or approaching retirement, you likely have stable income sources like pensions, investments, or savings.
Interest rates for these specialist loans are typically higher than traditional mortgages, reflecting the different risk profile of park home ownership.
Alternative financing options for park homes after 50
Many of our residents at Leedons Residential Park and Broadway Park use alternative methods to finance their park home purchase. These options often work particularly well for buyers over 50:
Cash from property sale
Selling your existing home to buy a park home outright is the simplest approach. With new residential park homes at our locations starting from £215k (Broadway Park) and £250k (Leedons Residential), many people find they can sell their current property and purchase a park home with money left over to enjoy retirement.
Equity release
If you own your current home outright or have significant equity in it, equity release products let you access some of this value while still living in your property. This can provide the funds needed for a park home purchase, which you can move to later.
Retirement interest-only loans
Some financial institutions offer products designed specifically for older borrowers. These loans only require you to pay the interest each month, with the capital repaid when you sell the property, move into long-term care, or pass away.
Savings and investments
Many of our residents have planned ahead, using savings or investment returns to fund their park home purchase.
Family assistance
Some buyers receive help from family members who contribute towards the purchase price, often as part of inheritance tax planning.
Each of these options has different implications for your long-term financial situation, so it’s worth discussing them with a financial advisor who understands your personal circumstances.
What to prepare when applying for park home financing
If you’re pursuing financing for your park home purchase, being well-prepared strengthens your application. Here’s what you’ll typically need:
Documentation for income verification
For buyers over 50, this often includes:
- Pension statements (both state and private)
- Investment income documentation
- Rental income details (if applicable)
- Employment income (if still working)
- Bank statements (usually the last 3-6 months)
Credit profile information
While credit requirements are sometimes less stringent than traditional mortgages, lenders will still check your credit history. Before applying, it’s wise to:
- Review your credit report for any errors
- Ensure you’re on the electoral register
- Pay down existing debts where possible
- Avoid new credit applications shortly before applying
Park documentation
Lenders will want to see:
- Site licence details
- Written Statement Under the Mobile Home Act 1983
- Park rules and regulations
Property information
Details about the specific park home, including:
- BS3632 compliance certification
- Manufacturer’s warranty details
- 10-year Gold Shield/Platinum Seal structure cover documentation
How we help our residents secure park home financing
At Arden Parks, we understand that financing can be a concern when considering a residential park home. While we don’t provide direct financing ourselves, we’ve helped hundreds of residents find suitable funding solutions over our many years in the industry.
We can:
- Explain the unique aspects of park home ownership that affect financing
- Direct you to specialist lenders who understand the park home market
- Provide all necessary documentation about our parks that lenders require
- Connect you with residents who’ve successfully navigated the financing process
Our parks at Broadway and Leedons Residential are established communities where we’ve welcomed many residents who have used various financing methods. The peaceful setting, excellent amenities (including an indoor heated swimming pool, bowling green, and community hall), and strong community spirit make the effort of securing financing worthwhile.
Remember that all our residential park homes come with the security of a residential site licence for permanent living all year round, and new homes include a manufacturer’s warranty plus 10-year structural cover.
Frequently Asked Questions
Do park homes qualify for traditional mortgages?
No, traditional mortgage lenders don’t typically finance park homes because they’re legally classified as personal property rather than real estate. However, specialist lending options are available that function similarly to mortgages.
Is financing harder to secure for park homes if you’re over 65?
Not necessarily. Many specialist lenders cater specifically to older buyers and have no maximum age limits. They focus more on your income stability than your age. For many retirees, regular pension income can actually be viewed favourably by lenders.
What happens to my financing if I want to sell my park home later?
Most park home loans are portable or can be repaid when you sell. The process works similarly to selling a traditional property with a mortgage, though the specifics depend on your particular financing arrangement.
Are there any government schemes to help finance park home purchases?
Currently, park homes don’t qualify for most government home-buying schemes since they’re not classified as traditional real estate. However, financial regulations are evolving, so it’s worth checking the latest information when you’re ready to buy.
How does the pitch fee affect financing options?
Lenders will factor monthly pitch fees into their affordability calculations, similar to how they would consider service charges or ground rent for traditional properties. Our transparent fee structure makes this calculation straightforward.
