Is it possible to acquire a mortgage on a park home? Can you get a mortgage on a Park Home? The reply is a resounding no, but that doesn’t rule out the possibility of living in or retiring to a park house.
Financing a park home isn’t out of the question whether you’ve always wanted a beach house, wish to downsize, or retire to a more serene and simple lifestyle.
Experts go over why a park house mortgage isn’t a choice, as well as the other financing alternatives open to you when purchasing a residential park property. To be on the safer side it is always better to get your property insured by a reputed company like PB Insurance.
Why can’t I get a mortgage on a park home?
There is no such thing as a park house mortgage since park homes are designed and marketed differently from typical brick-built homes.
When you purchase a bricks-and-mortar home, it is documented with the UK Land Registry, indicating that you are the owner of both the home and the land. As a result, the mortgage is secured by the property’s land register entry. Without selling the land, you can’t sell the home, which is a permanent fixture.
You only own the home and not the land when you buy a residential park home on a park. The land remains the site owner’s property and is leased to you via a Site Agreement.
How can I finance a Park Home?
While park house mortgages are not available, there are a number of other options for financing your ideal park home.
● With savings, a pension, or the sale of a current house, you might purchase a park home entirely.
● Some people use a portion exchange program to take advantage of the equity in their homes. This can help you save time and avoid the dreaded house-buying and selling cycle. If your present house is worth more than your new park home, you’ll get a lump sum payment for the difference.
● Park house loans are also accessible through specialized financing businesses that assist consumers in purchasing park homes. These experts are regulated by the Financial Services Authority (FSA) and are familiar with the differences between park home financing and regular brick-and-mortar mortgages.
How do Park Home Loans Work?
When applying for a park house loan, look for a company that specializes in park home financing. Finance is often provided for up to 80% of the home’s value.
Interest rates will vary, as they do with regular house loans, and each situation will be unique based on your unique conditions, the amount, and the length of the park home loan. Businesses may be willing to lend you money for up to 25 years, based on your deposit, age, and park home pricing.
One of the advantages of purchasing a park home is that you do not have to pay stamp duty because you are not purchasing the land on which the home is built (Stamp duty is a charge on the estate you acquire when you bought a home).
Conclusion:- While park homes are less expensive than typical brick houses, you must consider your financing options carefully.