Addressing and answering the question ‘can you finance a park home with a mortgage?’ is simple: there is no grey area about it, the answer is simply and unwaveringly ‘no’.
As such, often when the question is asked, it is so by people who already know the answer or have deduced as much, and are really then asking ‘why can’t a mortgage be taken out on a park home?’ and subsequently ‘how then do I finance the purchase of a park home?’
So, having unequivocally answered the question as to whether a park home can be mortgaged, let’s now address those two questions.
Why can’t a mortgage be taken out on a park home?
A park home, unlike a home or building made using bricks and mortar, is ‘unfixed’. That is, it is not permanently ‘stuck’ to the ground upon which it sits; it can be moved like a caravan. Hence, when a person purchases a park home they are purchasing the home only.
In contrast, when a person purchases a home made of bricks and mortar included in that cost or price of that premises is the ownership of the land upon which the building sits. Why does all this matter? That is another good question…
The reason a mortgage cannot be taken out against a park home is in the way by which mortgages, by definition, work; that is, mortgages are levied not against a property, but against the land upon which a building is built. Why? Well, the most obvious reason is that should a home owner decide to knock down their home in order to rebuild it, once they have done so and before having rebuilt their home, had they not bought the right to the land upon which it stood, they would essentially have just destroyed the only thing they had bought!
Hence, in the UKmortgages are alwaysand can only be secured against structures which are registered by the UK government on the official land registry list. And, you can learn more about land registry via the Gov.UK website. Meanwhile, for more information and advice about mortgages, consult a mortgage broker or alternatively refer to the information provided free via the Citizens Advice Bureau website.
how then do I finance the purchase of a park home?
Firstly, and fortunately, taking out finance on the purchase of a park home is possible. To quote Justin Allitt of Sell My Park Home, a company which specialise in the buying and selling of park home properties and as such is a savvy company to turn to for advice on purchasing a park home: ‘there are numerous finance options out there and available to anybody who wants to buy a park home.’
The nature of the finance offered to those purchasing a park home though differs from a mortgage in some important respects, and despite sharing many similarities;‘‘specialist lenders like RoyScot Larch and Park Home Assist have exclusive range Park Home Finance Products for purchasers of new or used Residential Park Homes on licensed Residential Parks and are designed in a similar way as a mortgage, and without the need for Solicitors or Conveyancers.’
Hence, rather than searching separately for finance when shopping for a new or first time park home, and whether to use as a holiday home, rent out or reside in permanently, it is often best to discuss finance options directly with a park home sales company; after all, if they themselves do not offer finance packages as part of their business they will almost certainly be able to recommend a company which do, and which they have dealt with and so is reputable and professional.