Buying a park home property differs from buying a bricks and mortar property in several ways. In turn, these differences can to varying degrees and sometimes dramatically affect how financing a park home purchase is undergone. Hence, if you are considering purchasing a park home, it is worth being aware of how exactly this is made possible, and what your options are before buying.
Buying ‘Out Right’
Just like most things, including bricks and mortar built homes, it is of course entirely possible to buy a park home out right. In fact, if you are looking to buy a park home property and are financially able to buy outright it is not just possible to do so, but advisable. Those who buy their park home property out right stand to save a vast amount of money as they will save themselves from paying interest on their investment and own the entire property from the get go.
To learn about what buying a park home property might cost you, take a look at websites such as Sell My Park Home to see average prices, and don’t forget to factor into your budget site fees, depending where your park home property will be located. Most park home property owners do not own the land upon which their park home is situated, despite fully owning the park home itself and site fees are not fixed; where you live and how desirable the area is will almost certainly affect how much you stand to pay in site fees.
Can a Park Home be Mortgaged?
Mortgages are applicable on ‘dwellings’ which are described as being ‘fixed’ rather than ‘mobile’ and as such are bought and sold along with the land upon which they have been built. Hence, bricks and mortar property owners can apply to extend or even demolish and rebuild a property to their specification, and subject to planning to permission and regulations. This also enables those purchasing property to take out a mortgage in order to afford the cost of their perchance as a mortgage is a very specific form of loan and finance option which can only ever be secured against a property’s official UK land registry listing.
In contrast, park homes are bought and sold separate to the land upon which they are situated. Consequently, park home owners almost always have their park home located on a licensed park home site and pay the owner of said site a fee to do so. Therefore, it is not possible to mortgage a park home property.
Can a Park Home be Bought on Finance?
Fortunately, the fact that park home properties cannot be mortgaged does not mean that they cannot be bought via finance. In fact, within the UK a large number of park home finance providers instead offer those looking to purchase a park home with viable finance options to enable them to do so if they cannot buy their park home property outright.
Finance to purchase a park home is usually available up to 70% of the purchase price of a park home property. Many park home finance providers also offer to combine insurance policies on a park home property with a loan given to enable a person or family to purchase a park home. Further, finance to purchase a park home property is available to those looking to buy a park home whether to rent out, live in permanently or use as a holiday or vacation home.
You can find a reputable and well established park home finance provider and learn more about park home finance options by heading over to the Park Home Magazine online. The Park Home Magazine website features numerous insightful articles and news relating to all things park home related as well as an up to date 2016 directory of park home finance providers operating within the UK.
