Is park home a good idea?

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    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.
    My views are my own - you may not agree with them. I tend say things as I see them and I don't do "political correctness". Just because we may not agree you can still buy me a pint lol

    Comment


      #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...

      Comment


        #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.

        Comment


          #5
          landlord-man,

          Thank you so much for that very high standard reply.

          Comment


            #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.

            Comment


              #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.

              My views are my own - you may not agree with them. I tend say things as I see them and I don't do "political correctness". Just because we may not agree you can still buy me a pint lol

              Comment


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

                Comment


                  #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.

                  Comment

                  Latest Activity

                  Collapse

                  • Reply to Labour taxation plans
                    by SouthernDave
                    Just dont sell… problem solved

                    If Labour get hold of this country again after Blair messed it up then we will be well on the path to becoming a socialist state and anyone who is considered well off will be in trouble. We all know that socialism doesnt work....
                    20-01-2022, 20:59 PM
                  • Labour taxation plans
                    by steaming
                    Rachel Reeves R4 this am told the interviewer that Labour (when in power) would raise money by taxing those with BTL property much more than at present, she opined it was wrong that “they” were “getting away with it”. No challenge from BBC or fact check as to present tax. You are warned.
                    20-01-2022, 16:55 PM
                  • Reply to Holding deposit
                    by Ollie2000
                    Thanks everyone for your input.
                    20-01-2022, 20:51 PM
                  • Holding deposit
                    by Ollie2000
                    Hi all, sorry if this has already been asked/answered, but can anyone give me a link to the law regarding holding deposits?

                    I have not been able to find anything official to confirm that the landlord/agent is allowed to keep this if the applicant fails to proceed with the application and...
                    04-01-2022, 14:55 PM
                  • Reply to Long term "guest"
                    by Ollie2000
                    Thanks everyone for your input.
                    20-01-2022, 20:49 PM
                  • Long term "guest"
                    by Ollie2000
                    Hi,

                    I have a very small flat let out to a single tenant. The tenancy agreement states the maximum number of occupants as one.

                    The tenant now wants her mother to stay with her as a guest for several months (she would have nowhere else to stay as she is not a UK resident). ...
                    20-01-2022, 13:21 PM
                  • Reply to Property damaged. Advice please
                    by DoricPixie
                    Your opinion on what constitutes negligence doesn’t really matter. It’s the law’s take on it that matters. If I went out and murdered someone when I wasn’t in my right state of mind then I could use the ‘diminished responsibility’ defence. That’s for a most heinous criminal offence so...
                    20-01-2022, 20:44 PM
                  • Property damaged. Advice please
                    by minorbark
                    Apologies if something similar has already been covered elsewhere. I did try to search but couldn't find anything that matched my situation particularly closely. A huge thanks in advance to any of you who do take the time to read and advise.

                    TLDR version: Police have forced entry into my...
                    18-01-2022, 21:55 PM
                  • Reply to Greetings, I Come in Peace
                    by SouthernDave
                    theres no way this will happen. The gov have no idea what they are proposing, its all a pipe dream designed to get people thinking. It was like when they said all gov funded construction projects needed to be undertaken as a BIM process by 2016 because they wanted to reduce the cost of UK construction....
                    20-01-2022, 20:42 PM
                  • Greetings, I Come in Peace
                    by AVJ113
                    Hello all, I am a prospective landlord. I will be arranging my first mortgage in principle today as a start to my evil buy-to-let empire. As a total newb, what would be the one piece of advice you would give after your years of experience as a landlord?
                    20-01-2022, 07:24 AM
                  Working...
                  X