Planning for the future of your residential park home is just as important as it is for any other property. However, park homes have unique considerations that require specific attention in your estate planning. If you own a residential park home at one of our parks, understanding how to properly include it in your will is essential to ensure your wishes are carried out smoothly.
Key Takeaways
- Residential park homes have distinct legal status compared to traditional property, affecting how they’re inherited
- Your will should include specific language and documentation referencing your park home
- Site agreements and fee obligations need clear planning for transferring to beneficiaries
- Park homes may have different inheritance tax implications than traditional properties
- Taking proactive steps now can protect your park home legacy and prevent complications
Understanding park home ownership and inheritance laws
Residential park homes exist in a unique legal category that differs from traditional freehold or leasehold properties. When you own a residential park home, you own the physical structure itself, but not the land it sits on. This distinction is fundamental to understanding how park homes are passed on after your death.
Under the Mobile Homes Act 1983 (as amended), park home owners receive a Written Statement that forms the legal agreement between you and the park owner. This agreement creates what’s known as a ‘licence to occupy’ the pitch, which continues ‘in perpetuity’ at our residential parks.
Unlike traditional property, residential park homes don’t require a title search or mortgage, and they don’t attract stamp duty. This special status also impacts how inheritance works. When a park home owner passes away, the home doesn’t automatically transfer to beneficiaries the same way a house would – specific legal steps must be taken.
Age restrictions are another important consideration for inheritance planning. Our residential parks are exclusively for people aged 50 and over, with no dependent children allowed to live on the park. This means your beneficiaries must meet these age requirements if they plan to live in the home rather than sell it.
How to properly include your park home in your will
Including your residential park home in your will requires specific attention to terminology and documentation. Here are the essential elements to include:
- Clearly identify your park home as a “residential park home” located at your specific address, including the park name and pitch number
- Reference your Written Statement under the Mobile Homes Act 1983, as this establishes your legal right to occupy the pitch
- Include a copy of this statement with your will documentation to help executors understand the unique legal status
- Clearly state your wishes regarding the park home – whether it should be sold with proceeds distributed, or transferred to a specific beneficiary
We recommend consulting with a solicitor who has experience with park home legislation. Many general solicitors may not be familiar with the specific legal framework governing residential park homes at Leedons Residential Park or Broadway Park.
Remember that your beneficiaries will need to provide the park owner with a copy of the Grant of Probate or Letters of Administration to establish their right to deal with the park home.
What happens to site fees and agreements after you pass?
Site fees don’t simply disappear when a park home owner passes away. The ongoing obligation to pay site fees continues, and typically becomes the responsibility of the estate until the park home is either transferred to a beneficiary or sold.
At our parks, the monthly pitch fees (£193.77 at Broadway Park and £246.58 at Leedons Residential) must continue to be paid to maintain the agreement with the park. Your executors should be made aware of this ongoing obligation to avoid potential complications.
Important considerations for ongoing agreements include:
- When ownership transfers to a beneficiary who meets the age requirements and intends to live in the home, they will need to enter into a new agreement with us
- If beneficiaries decide to sell the park home, they’ll need to continue paying pitch fees until the sale completes
- Park homes must be used as the main residence, and sub-letting is strictly forbidden under park rules
- Council tax and utility bills also remain payable until ownership is transferred or the home is sold
Most of our residential park homes are in council tax band A, which is helpful information for executors managing the estate.
Tax considerations when passing on your park home
The tax implications of inheriting a residential park home differ in some ways from traditional property. While the park home forms part of your estate for inheritance tax purposes, there are some important distinctions to understand.
Key tax considerations include:
- For inheritance tax calculations, the value of your park home is typically lower than a traditional house of comparable size
- The home’s value should still be professionally assessed for probate purposes
- If your total estate falls below the current inheritance tax threshold, your beneficiaries may not face any inheritance tax liability
- Certain exemptions may apply, such as the residence nil-rate band if you’re leaving your park home to direct descendants
- Park homes don’t attract stamp duty when they change hands, meaning beneficiaries won’t face this additional tax burden
You should consult with a tax professional for advice specific to your circumstances to ensure proper planning and potentially minimize tax impact.
Steps to take now to protect your park home legacy
Taking proactive steps today can help ensure your wishes regarding your residential park home are properly fulfilled:
- Create or update your will with specific references to your park home, using proper terminology and including details of your pitch location at either Leedons Residential Park or Broadway Park.
- Organize your documentation including your Written Statement, pitch fee payment records, and any park rules or regulations, keeping them with your will.
- Discuss your intentions with beneficiaries, making them aware of age restrictions and residence requirements if they plan to live in the home rather than sell it.
- Consult with appropriate professionals such as solicitors familiar with park home legislation and tax advisors who can provide guidance on inheritance tax implications.
- Consider setting aside funds to cover ongoing pitch fees during the probate process, ensuring the agreement remains in good standing.
If your circumstances or wishes change, remember to update your will accordingly. Regular reviews ensure your estate planning remains current and aligned with your intentions for your residential park home.
Frequently Asked Questions
Can I leave my park home to someone under 50?
Yes, you can leave your park home to anyone in your will. However, if the beneficiary is under 50, they would not be able to live in the home due to park age restrictions. They would need to sell the property, as our residential parks are exclusively for people aged 50 and over.
Can multiple beneficiaries inherit a park home?
Yes, multiple beneficiaries can inherit a park home. However, this typically means they would share the proceeds from selling the home rather than joint ownership, as the Written Statement agreement is designed for individual or couple occupancy.
Are there any restrictions on selling an inherited park home?
The same rules apply as with any park home sale. The park owner may have certain rights regarding the sale process, and any new owner must meet the age requirements and be approved to live on the park.
