‘Buying a park home is an increasingly popular option, agrees Sarah Phillips, Partner and Head of Conveyancing with QualitySolicitors Parkinson Wright. ‘It appeals to all sorts of people; retirees, downsizers, or those simply looking to make the most of their leisure time. It can be a major financial commitment, so it is important not to scrimp on professional advice.’
Sarah answers some the common questions about the legal aspects of buying a static caravan or park home.
How is a park home different from a bricks and mortar property?
There are two main differences. One is in the style of construction. Sometimes a park home may look a bit like a conventional bungalow. However, it is unlikely to be built using traditional materials. Instead, it will be a caravan or some other structure which you can move without it being dismantled. This usually means that it has a shorter physical lifespan.
Secondly, unlike a traditional house, you will not usually own the land on which your unit is situated. You may own the caravan outright, but you will only have an agreement, sometimes called a licence, for its pitch. As a result, the law will treat your home very differently from a conventional freehold or leasehold property. You will also need to pay cash or take out a specialist loan to buy it, as lenders will not give you a mortgage.
What is the difference between a park home and a holiday home?
The term ‘park home’ can itself be confusing as it is used inconsistently, even by experts. Certain types of static caravan, on residential parks, enjoy greater legal protection. They must meet certain conditions and are intended as permanent residences. These are sometimes referred to as units on ‘protected’ sites. Others, designed with holidaymakers in mind, have less statutory protection and are not intended as permanent homes.
If you are buying a park home, it is important to know which category it falls into as this will affect your rights.
What are the main advantages of a park home?
Park homes may be cheaper to buy, and run, than a conventional house. In addition, they do not attract stamp duty or Land Registry fees. They are often located in picturesque parts of the country, close to the sea or in the countryside. You may also be attracted by the instant community they offer. For example, some sites are restricted to people over a certain age or facilitate a particular lifestyle.
Modern static caravans can also offer a relatively high finish and level of insulation. Unlike a conventional property, however, there is no system of building control for park homes. Before buying one, you should check it complies with the appropriate industry standards (BSI 3632 for residential caravans, BS EN 1647 for holiday homes), and consider a specialist survey if it is not new.
What are the main disadvantages of a park home?
Not owning the land means you have less control over your home compared to its bricks and mortar equivalent. What you can or cannot do will depend largely on the terms of your pitch agreement. So, it is important to read this very carefully, and to ask your solicitor to explain anything you are not clear about. For example, the agreement may prevent you extending or making alterations to your unit. Or it may restrict who may occupy it, for example, to people over a certain age, or it may ban you from keeping pets. In a holiday park, your period of occupation is likely to be limited to certain months of the year.
There are also likely to be some additional costs. These will include the pitch fee, which can be significant, and which may increase over time. A park home is also unlikely to increase in value in the same way as a bricks and mortar property.
How long can I stay in my park home?
This will depend upon whether it is a protected or not. If it is, and the site owner wishes to evict you, they must go to court and show you are breaking the terms of your agreement or that you are not occupying the unit as your main residence. This is the case regardless of what the agreement says.
If, however, your unit is not protected, your rights will primarily depend upon the terms of your agreement with the site owner. Often your pitch licence will be for a limited duration. At the end of this period, typically 15 or 20 years, the site owner can require you to remove your unit. So, if you are buying a park home, it is vital to know if it is protected or not. Your solicitor can advise you on this.
What happens when I want to sell my park home?
Whether your unit is protected, or not, will also affect how you can transfer it.
If it is not protected, the site owner is likely to have more control over the transfer process. For example, they may have the right to buy the unit back, according to a formula set out in the agreement. Or they may be able to require the unit to be repositioned, which could affect the price you can achieve. You are also likely to have to pay them commission. This will vary from site to site but is often in the region of 15 per cent of the selling price.
With a protected unit, you should be in a stronger position. Provided your buyer meets the site’s rules, for example, where an age restriction applies, the site owner should not be able to block the sale. You may, however, still have to pay them commission, although this is capped at 10 per cent of the sale price.
Do I really need a solicitor when buying a park or holiday home?
Some sellers may suggest you do not need a solicitor. However, your purchase is likely to involve substantial expenditure, sometimes as much as you would pay for a conventional home. So, it makes sense to take professional advice, just as you would with any other property transaction.
The rules surrounding park and holiday homes can be complex. For example, particular care is necessary to ensure you do not end up having to pay the site owner the sales commission because of the seller’s default.
As with a bricks and mortar property, your unit should comply with any planning conditions and have sufficient rights for access and utilities. A blocked sewage line could seriously impact on your enjoyment of your new home. Your solicitor will check whether responsibility for these issues lies with the site owner and, if not, ensure you have the necessary rights to remedy them yourself.
How we can help
Having a solicitor on board who understands this specialist type of property ownership will help you avoid any expensive mistakes, so you can get on and enjoy your new lifestyle.
For further information, please contact Sarah Phillips in the conveyancing team on 01905 721600 or email worcester@parkinsonwright.co.uk
This article is for general information only and does not constitute legal or professional advice. Please note that the law may have changed since this article was published.