Park homes offer a comfortable, modern and manageable way of life, and with over 250,000 Brits currently living in park home accommodation, it really is not difficult to see why!
If you are in the exciting process of looking to purchase a residential park home, then one of the considerations you might be facing is how you are going to finance the accommodation.
If your current residence is a traditionally built brick and mortar property, then you probably at some time applied for a mortgage in order to help cover the cost of buying your home.
Yet as park homes can differ in a number of ways as opposed to conventional properties, it is essential that you understand your options for such a large and important purchase before making a final decision.
The long and short of the matter is that mortgages, unfortunately, do not work in the same way for park homes as they do for bricks and mortar properties, and are therefore generally not given out to those wanting to purchase a mobile home.
The fundamental difference between a park home and brick-built property is that with a park home, you only own the building itself, not the land it is situated on which is still in the hands of the park owner.
With a traditional mortgage, the property is secured against the property’s listing on the Land Registry, yet as you do not own the land that you are located on with mobile homes, this essentially means that you will not be able to take out a mortgage.
What are my other options?
Although taking out a mortgage is not possible for residential park homes, there is no need to be despondent just yet as there are still plenty of other financially viable options for purchasing your park home that you might want to consider.
Alternative financial assistance
One method that people often look at to help with financing their mobile home is to seek specialist financial loans.
Available for up to 15 years, finance can usually be accessed for up to 80% of the property value.
There are specialist financial providers who can help discuss your situation. Always remember to bear in mind that interest rates will depend on a number of factors including the value of the property, your personal situation, the amount of loan required and how long this is for.
Property Part Exchange
The benefit of this option is that any worries about selling your property on the open market should be lessened.
According to park industry property specialists Sell My Park Home who recommend using thepart exchange company, Quick Move Properties advise that this is a safe way of securing the sale once the formal offer has been received. Further benefits include a quicker transfer of funds which could be more suited to your own personal deadlines.
Although both of these options could be advantageous for financing your park home, it might be beneficial to first seek assistance from a financial advisor who will be able to assist and advise with the best options for your situation before making any decisions.
The choice to purchase a park home is very important and will take time to research. Doing what you can to understand the best financially viable options for you will certainly help in ensuring that the process of purchasing your park home is as hassle-free as possible, and ultimately that it is the most suitable route for you to take.