Is park home a good idea?

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    Is park home a good idea?

    I am wondering if buy to let a park home is a good idea. It is a seasonal stuff so I am a bit worried it will be hard to get money back plus I have to pay service charge and so forth. Any advice? Thanks very much.

    #2
    No No and No

    Firstly, is it a park HOME or a holiday unit?

    You have annual fees PLUS if the park owner decides to build a new road or clubhouse, he can charge you a proportion of the cost to reflect the fact you benefit.

    Then there is gas which has to be purchased off the owner.

    Then you need permission to let, and need to establish the letting periods.

    When you come to sell you will get offered peanuts - you can sell privately but the owner is allowed to vet your buyer and can say no.

    When your unit is 15, 20, 25 years old you get turfed off site.

    Then, your local council will have set conditions on the park - which the park owner will neglect to tell you about.

    Did I say dont do it?

    One last one - most parks have been shut due to Covid so there goes your income.

    And last nail in the coffin - any park people will want to stay at will have lots of facilities - yep, you pay for those.

    Parks near me have annual park fees of between £4,000 and £12,000 per year !!!! - one 2 year old double wide unit is currently for sale at £50k - its new price was £165k - because the park fees are £12,000 and nobody in their right mind is going to commit to that.

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      #3
      Plus the park homes almost always go down in price as they get old until it's time to scrap & replace -if park owner allows.

      There seem to be a surprisingly high proportion of park owners with terrible reputations rather frequently reported in the press.

      Avoid.
      I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

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        #4
        Landlord Man - Genius post

        I knew instinctively they were a bad idea but never understood just how bad they were. Thanks for the info.

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          #5
          landlord-man,

          Thank you so much for that very high standard reply.

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            #6
            as if it wasn't bad enough from landlord-man's almost exhaustive litany of woe, there are at least two more things he forgot to mention.

            Firstly, it's highly likely there'll be a clause that states that the property cannot be occupied all year round. Some parks close for a month each year, for example. This is to get around them being liable for council tax as residences, and it effectively means you have to find a tenant who is happy to be homeless for a few weeks a year.

            Secondly, there's usually a hefty fee payable to site owners on sale of property. Think 15%.

            I have personal experience of the latter having had to dispose of one after a father-in-law died who had bought one on an impulse purchase the year before. Worst decision he ever made.

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              #7
              Now - having said all of that - park homes or lodges with residential status CAN be a nice way for older people to retire, surrounded by similar people who all look out for each other and take pride in the appearance of "their" park. Most will have a 60+ age restriction (55+ at some).

              Such parks seldom have bars or restaurants and will usually just have an on-site laundrette (though newer units will have a washing machine in the unit).

              The units lose value at a slower rate (in some desirable parks, units have been known to increase slightly in value). Annual fees are often under £2,000 per year so can be less than a leasehold flat or similar retirement property.

              If you aren't worried about leaving £££ for the family, they can be a great escape - while also freeing up housing stock.

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                #8
                Most contracts I have seen in relation to residential park units prohibit letting/subletting.

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                  #9
                  If you mean "furnished holiday lets", then you may be able to make money if
                  1. You let privately, not through the park.
                  2. You go for the cheapest suitable van you can get (holiday makers will not treat it well)
                  3. You take full advantage of the tax regime, such as
                    1. You meet the minimum "available to let" and "actually let" days each tax year
                      (this gives access to the "furnished holiday lets" tax rules and allows, for example, deduction of full finance costs from income when calculating taxable profit, and allows any loss to be offset against earned income)
                    2. You claim depreciation as an annual expense.

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