The Ownership Model: Park Home Residences
Whilst the home itself will be owned by the resident, the land upon which the home is sited – the plot – will remain in the ownership of the site owner and a monthly pitch fee will be payable to the site owner for the use of the land and services and to cover the maintenance of the park. Typically pitch fees will vary from plot to plot and park to park from £150 to £250 per month.
The Economics of Park Home Ownership
For most people, the reason to purchase a park home is based upon economics and downsizing. By selling their ‘bricks and mortar home, they are likely to release equity which will enable them to enjoy their retirement, support a reasonable lifestyle, take holidays and fulfil hobbies and pastimes.
Park homes tend to be in the lowest Council Tax band A, and because the homes are smaller and usually, well-insulated heating bills tend to be much lower, as do other bills too.
One thing to be aware of is that when you sell your park home, the site owner is entitled to receive up to 10%, and it usually is 10% of the sale proceeds. Residents are campaigning for a Government review of this charge which they feel is outdated and unfair, whilst park owners argue it is crucial to the viability of running their parks. The answer is probably a bit of both, but don’t be surprised to see a reduction in due course.
