A frequently asked question by home owners looking to downsize into a park home or simply purchase a park home as an investment or holiday is: can you finance a park home with a mortgage?
To answer that question, here is everything you need to know, as well as where to turn for more advice, guidance and information.
What is a Mortgage?
Most of us probably think we know very well what exactly a mortgage is. After all, many of us are forking out for one! Understanding the specific ways in which a mortgage works and when they can thus be secured will quickly answer the question as to whether a mortgage can be applied for when buying a park home.
That is, a mortgage is a particular type of loan which is applied for when buying a house. Yes, we are for the most part all aware of that much. But it is the fact that mortgage loans were devised as a specific finance option when purchasing a bricks and mortar property . Then, and to get down to it, a mortgage is not in fact secured against a property; it is more accurately secured against the land upon which a property is built. This allows home owners to rebuild, extend and make structural changes to their property without invalidating their mortgage. After all, if a loan is taken out against a house itself and an owner knocks said house down to rebuild, they have effectively and literally destroyed their investment and would be left with nothing.
Hence, for a mortgage to be a possible finance option when buying a ‘dwelling’ that dwelling must be registered on the UK land registry.
How are Park Homes Bought and Sold?
Park home properties are a type of dwelling which are sold independently of the land upon which they reside. In that way, park homes are bought and sold more as cars or caravans are bought and sold than houses. This means that buying or selling a park home property is likely to save a person a wealth of money, time and stress as it is a far less legally complex undergoing.
That said, it is always advisable to seek some legal advice via a specialist park and mobile home law firm such as Tubervilles Solicitors, but buyers and sellers can expect to pay and require far less legal support due to the fact that laws surrounding the purchase and sale of mobile homes (of any kind) are far simpler.
This means though that it is categorically impossible to secure a mortgage against a park home as no land is being bought or sold as part of ‘the deal’.
How to Finance a Park Home?
When possible, and because park homes cast a fraction of the price attached to similar standard bricks and mortar properties, it is always most prudent and financially savvy to buy a park home outright via a reputable park home provider such as Sell My Park Home, on whose website you can view a huge selection of park home properties for sale across the UK and compare their prices to that of standard, brick-build homes in the same areas. Buying outright will simply and speed up the buying process as well as stand to save you money otherwise spent on the interest accumulated on taking out a loan.
Of course, this is not an option for everybody. Fortunately, just because a park home cannot be mortgaged does not mean though that finance is not available when purchasing a park home. In fact, a number of finance companies and specialists provide park home finance, such as the Best Park Home Finance Company here in the UK.
Independent park home finance specialists, Best Park Home Finance: ‘are a principal lender which means that [they] do not pass your application on to another party or bank…. [they] make ALL the decisions and are able to create our own unique criteria to meet YOUR needs’ as stated via their website. Hence, they are a sensible team to go to when seeking park home finance, or just requiring more information as to matters of park home finance.
