Planning financially for a park home purchase after 50 requires careful consideration of both upfront costs and ongoing expenses. When you’re approaching retirement or already retired, residential park homes offer an attractive option that can provide luxury living at a lower cost than traditional housing. At this stage in life, it’s essential to understand the complete financial picture before making this significant investment. From purchase price and site fees to utilities and maintenance, proper planning ensures your park home investment supports your long-term financial wellbeing.
- Purchase prices for residential park homes typically range from £215k at Broadway Park to £250k+ at Leedons Residential
- Monthly site fees (£193.77-£246.58) must be factored into your ongoing budget
- No mortgages are available for park homes, so alternative funding methods are required
- Park homes can be a cost-effective downsizing option with lower maintenance costs
- Understanding the Mobile Homes Act protections is vital for safeguarding your investment
What financial aspects should I consider before buying a park home?
When buying a residential park home, the most important financial aspects to consider include the purchase price, ongoing site fees, utility costs, insurance, and maintenance expenses. Unlike traditional property, you’re purchasing the home itself but not the land it sits on.
The purchase price for park homes at our residential parks starts from £215k at Broadway Park and £250k at Leedons Residential Park, with show homes available from £318k. This price typically includes connections to mains services, a driveway for two cars, groundwork including skirting, steps, and a path around the home, plus a garden shed.
It’s worth noting that park home purchases don’t incur stamp duty, which represents a significant saving compared to traditional property. Additionally, council tax is typically band A, making it more affordable than many conventional homes.
Another key difference is that park homes depreciate over time unlike traditional houses which typically appreciate. This means you should view your purchase primarily as a lifestyle investment rather than a wealth-building asset.
How do I fund a park home purchase in my 50s or 60s?
Funding a park home purchase in your 50s or 60s typically requires different approaches than traditional property purchases since mortgages aren’t available for park homes. The most common funding method is selling your existing property and using the proceeds to purchase your park home outright.
If you’re downsizing from a larger family home, this can often leave you with surplus capital that can be invested to supplement your retirement income. Some buyers use a combination of savings, investments, or pension lump sums to fund their purchase.
For those who need to sell their existing home first, we can provide information about specialised part-exchange companies. These services can help streamline the moving process, although they typically offer below market value for your existing property.
Some buyers also consider equity release from their current property as a funding option, but this should be approached with caution and with independent financial advice. If you’re over 55, you might also consider using a tax-free lump sum from your pension pot, though this requires careful planning to ensure your remaining pension provides adequate ongoing income.
What ongoing costs should I budget for with park home living?
The ongoing costs of park home living include monthly site fees, utility bills, council tax, insurance, and maintenance expenses. Understanding these expenses is essential for accurate budgeting in retirement.
The monthly site fees at our parks are £193.77 at Broadway Park and £246.58 at Leedons Residential. These fees cover the rental of the pitch your home sits on and access to park facilities, which include an indoor heated swimming pool, outdoor bowling green, community hall, games room, tennis court, and laundrette.
Utility costs are additional and paid separately. At Leedons Residential, mains natural gas is available, which is typically more cost-effective than bottled gas options. The council provides bins to each property with recycling options, and you’ll be responsible for council tax (primarily band A).
Insurance for your park home is another necessary expense, covering both the structure and your possessions. This often costs less than insurance for traditional houses due to the smaller size of park homes.
Maintenance costs tend to be lower than for traditional properties, but it’s wise to budget for regular upkeep. New homes come with a manufacturer’s warranty and 10-year Gold Shield/Platinum Seal structure cover, providing peace of mind about major structural expenses in the early years.
How can I protect my financial investment in a park home?
Protecting your financial investment in a park home requires understanding your legal rights, obtaining proper insurance, and carefully reviewing site license agreements. The Mobile Homes Act provides important protections for park home owners that safeguard your investment.
When purchasing a park home, you’ll receive a Written Statement Under the Mobile Home Act 1983, which outlines your rights and responsibilities. This document is crucial as it confirms your security of tenure and ability to live in your park home “in perpetuity” – meaning you have the right to remain on the park for as long as you wish, provided you comply with the site rules.
Before finalising your purchase, verify that the park has a proper residential site license issued by the local authority. This confirms that the park is legally permitted for permanent residential use and that you’ll be protected by the relevant legislation.
Insurance protection is also vital. While the park operator may have their own insurance for common areas, you’ll need comprehensive insurance for your home that covers both the structure and contents against damage, theft, and natural disasters.
For peace of mind, we have managers and resident staff available year-round at our parks. If you have any concerns about your rights or protections, you can contact us for guidance or consult organisations like the Leasehold Advisory Service (LEASE).
How do park homes affect inheritance planning and estate considerations?
Park homes have specific inheritance implications that differ from traditional property ownership, making it important to address them in your estate planning. Understanding these differences ensures your assets are transferred according to your wishes.
Under the Mobile Homes Act, you can pass on your park home to a spouse, civil partner, family member or other person living with you when you die. However, there are important conditions to consider – the person inheriting must be eligible to live on the park, which typically means meeting the age requirement of being 50 years or older.
For inheritance tax purposes, park homes are considered personal property rather than real estate. The value of your park home will be included in your estate, but as park homes typically cost less than traditional houses, this may help reduce potential inheritance tax liability.
It’s important to explicitly include your park home in your will, specifying who should inherit it. Without clear instructions, your park home could become part of your residual estate and might not go to your preferred beneficiary.
Given the specific nature of park home ownership, consulting with a solicitor familiar with park home legislation when drawing up your will is highly recommended. They can help ensure your inheritance wishes are legally sound and take into account the specific requirements of park home ownership.
Frequently Asked Questions
Can I get a mortgage for a park home?
Yes, our residential parks require residents to be 50 years or older, and no dependent children are permitted to live on the park.
Can I rent out my park home when I’m not using it?
It takes approximately 12 weeks for a park home to be built by the manufacturer, and up to 16 weeks from siting the home on the plot to getting connections and making it ready to move in.
What facilities are available at Arden Parks residential parks?
Our parks offer numerous facilities including an indoor heated swimming pool, outdoor bowling green, community hall, games room, tennis court, laundrette, dog walk areas and countryside walks.
