The price quoted by Park home manufacturers is the price that one would pay to have the home manufactured and delivered to a privately owned plot of land. If the home is sited on land belonging to a company or another individual, as happens in most cases, there is a value associated with the right to use that plot of land for the lofetime of the home.
Part of the difference between the ex-works and sited prices is due o the construction of the base for the home and connection of the home to services, but the vast majority of the difference in price is as a result of the value on the land on which the home is sited.
A Park home can be passed on in a will. If it is left to a party currently not resident on the Park, then they may only occupy the home with the consent of the Park Owner. This is especially important on residential Parks where there may be a restriction on the age of prospective residents. The heirs may sell the home is they so wish.
If the home is left to the deceased's husband or wife (living with them on the Park) then the surviving partner can inherit the home and the rights for the home and continue to live on the Park.
Passing the Park home on to heirs includes transferring the agreement to the new owner. However, the 10% commission payable on the sale of a home does not apply when ownership is transferred due to inheritance, as no money has changed hands.
This transfer fee is not comparable with commission payments made to estate agents. It reflects the fact that the plot and the amenities of the Park add to the resale value of the home. It also reflects that the value of the home is likely yo have increased, because the land has increased in value, and the resident is paying the Park owner for a share in that increased value.
Considerable investment is necessary to develop and maintain a residential Park home estate. A reasonable return on this investment is essential to ensure that the Park continues as a viable concern in the interests of both the home owner and the Park owner.
The pitch fee is initially decided on in your agreement with the Park owner. It will increase at the rate on inflation each year. It can be raised at more than the rate of inflation only if:
- The Park owner has invested in the Park in the previous year in a way that benefits the residents and
- The residents have been consulted on that improvement program.
The rules governing pitch fee increases are very strict, and they prevent the Park owner raising the pitch fee in an arbitrary way.
All new Park Homes come with a manufacture's one year guarantee which covers the whole structure of the home and all parts, fixtures and fittings included at the time of sale.
The Manufacturer's one year guarantee also covers electrical equipment and the central heating boiler that was included in the sale of the home.
The manufacturer's Ten Year Gold Shield Scheme covers against any major defect in the load bearing structure of the Park Home.
Unfortunately you can not use a residential Park home as a second home, this needs to be your "only or main residence". This is not a park rule but a legal stipulation in the Mobile Homes Act.
Holiday Homes or Leisure Lodges however can only be used as a second residence and can not be used a a main residence.
You do not own the plot of land which your home is sited on, instead you are granted a licence to use the plot with the home sited on it indefinitely. As the plots aren't freehold properties, you never actually own them, you only hold the licence. However you do own the actual home.
The licence last for the lifetime of the home, which by current manufacturer estimates is roughly 50-60 years.
This varies between Parks, although the majority of our residential parks are for the over 50's and do not permit children to be resident on the Park. This does of course make provision for children visiting for periods of time and it would be perfectly acceptable for residents to have, for example, grandchildren to stay for a period of time.
The majority of our holiday Parks however do accept children however we do recommend you check with the Park before planning your stay.
Most of our Residential Parks do allow pets, although some only permit cats and small dogs which is at the managers discretion. All pets should be friendly and well-behaved and not cause any disruption to other residents on the Park, some Parks do have a "pets on lead" policy.
Park Homes can be resold on the open market, although the purchaser must be approved by the park owner (who can not unreasonably withold approval). This is especially important on the residential Parks where there may be a restriction on the age of the potential new residents.
Before a sale can proceed, homeowners need to inform the Park owner that they intend to sell their home and the price which they are intending to sell it. The Park owner is entitled to a commission share of the sale, which is currently 10%. This figure is due to be reviewed and possibly amended in the near future. This transfer fee is not comparable with the commission payments made to Estate Agents. Rather it reflects the fact that the pitch and the amenities of the Park add to the resale value of the home. It also reflects the fact that the value of the home is likely to have increased, because the land has increased in value, and the resident is paying the Park owner for a share in that increased value. Transfer fees supplement the income the Park owner receives from pitch fees and without them, pitch fees would have to be higher.
A considerable amount of investment is necessary to develop and maintain a licensed Park home estate. A reasonable return on this investment is essential to ensure that the park continues as a viable concern in the interests of both the home owner and the Park owner.
The home owner is not limited to selling the home via the Park owner and may enlist the help of local estate agents or other marketing channels. However, Estate agents' fees are payable on top of the transfer fee due to the Park owner.