Buying or Selling a Park Home?

Park LIFE Buying or Selling a Park Home? we re doing more to get you moving Buyers are attracted to park homes for a number of reasons: Security, neighbours, social aspect, community, independent living, retirement, holiday home, cost and change in circumstances. If circumstances in your life have changed or maintaining a garden or property has become a burden, then a park home could be a tempting solution to having your own place and releasing equity. As the leading experts on selling park homes we have put together this guide. through the guide. The Q & A section answers many of the questions we frequently get asked, like: Can we have pets? How long can I live there? How do I buy or sell a park home? If you have a question not already answered in our guide then please let us know. On the back cover we have included a list of fact sheets available from www.communities.gov.uk. So if you are thinking of buying or selling a park home talk to the local experts. So before you buy or sell a park home have a look

Buying & Selling a Park Home One of the many attractions of buying a park home is the simple purchase process and with the help of the estate agent and park home owner or manager, the purchase should be trouble free. The following will help you understand the process of buying or selling a park home: Visiting the Sites: Once you have decided on buying a park home make a point of visiting some sites and talk to the residents to see if they are happy where they are living Is the site well looked after? Are there any maintenance issues? Are there any problems? What do they like about the site? It s always a good idea to take some time to do some research before you commit to the purchase, that way you can feel happy that you have asked all the right questions before putting any money down. Plus there is nothing quite like getting a recommendation from the people that enjoy living there. Register with Us: If you have decided to buy a park home, but you just need to find the right one, then it s definitely worth registering with us at this point. As the areas leading estate agent on park homes we can let you know as soon as a suitable property comes on the market with us so you don t miss out. Park Site License: If you have found a park site you like then you might want to check that the park has their Park Site License on display; you will normally find this in the Park Office or on the notice board. The notice will tell you if the site has a permanent license or one that will run out when the Park Owners lease runs out (this may help indicate if the Park Owner owns the freehold of the land or not). Holiday or Residential: Different rules apply for holiday lodges so if you are buying privately or through another estate agent check that the Site License is for residential purposes for twelve months of the year or for holiday use. Please be aware that some parks have a 12-month license for holiday purposes, these sites cannot be used as your main residence but make an excellent holiday home or second property (see Holiday Lodges). Age Restriction: Some parks will have an age restriction, often over 50. You can check with us first for any restrictions. Viewing a Property: Try and give us or park as much notice as you can that you intend to visit the property, it may not be convenient for the owner or site if you arrive unarranged. As the agent will also be able to advise you if the property is still available and save you a potentially wasted journey. Once arranged we can meet you at the site and show you over the property. Fact Sheets: Before you buy you may wish to read the Park Home Fact Sheets published by the Dept. of Communities and Local Government, they explain the responsibilities of the resident and park owner and the legal conditions you will commit to. Making an Offer: Some properties will be open to an offer if you are able to move quickly, however be prepared to pay the asking price if there is other interest on the property. You will be asked how you are going to pay for the property and may be asked to pay a holding deposit if your offer is accepted. The site, agent or solicitor may hold this deposit. Before you agree to the purchase make sure you are in a position to proceed. Ability to Proceed: Many buyers for park homes are ready to proceed with available cash, however you may be using cash from the sale of another property. If this is the case then be cautious about putting down a holding deposit until you have exchanged or completed contracts on your own sale or

risk losing your holding fee. Check to see if the sellers are willing to give you time to sell your own property without penalty. Once agreed you are ready to arrange a meeting with the Park owners to talk through the purchase as well as the Parks Rules and regulations. Meet the Park Owner/Manager: When buying a park home arrange a time to discuss your purchase and ask for a copy of their Written Statement under the Mobile Homes Act 1983 and also a copy of the Park Rules. (They are now obliged by law to give you a copy at least 28 days before your sale to allow you time to consult a solicitor should you so wish) You will be asked to sign a letter to confirm that you have been offered and given a copy of these items. Visit www.communitities.gov.uk to download a copy of the Government Park Home Factsheets published by the Dept. of Communities and Local Government. These fact sheets should answer many of the queries you may have. If you wish to move in before the 28 days then the park owner will ask you to sign a waiver to say that you are happy and have requested this. No Stamp Duty or Solicitors: There is no stamp duty to pay on park homes, there is also no requirement to use a solicitor, though you may wish to seek the advice from one. Signing an Order Form: If you are ready to proceed you may be asked at this stage to sign an order form and provide a full ten per cent non refundable deposit. This is quite normal, but DO NOT SIGN until you are sure in your own mind and you are happy with the Written Statement under the Mobile Homes Act 1983. At this point the Park Owner/Manager may also ask you to sign a letter to say that you have read the copy Written Statement and the Park Rules and that you have understood their contents. If you are buying a second hand mobile home you may not be required to part with any deposit money until the day of assignment. Proceeding with the Purchase: You are not obliged to, but if you are buying a second hand home you may wish to have an independent survey or condition report carried out. This you may choose to do before or after you have committed to the purchase. If you organize this prior to paying a holding deposit make sure the owner is willing to refrain from accepting any other offers from interested parties. We can arrange the survey or condition report for you. Paying for the Park Home: On the day of assignment (completion day) you will normally be asked to bring with you three bankers drafts which total the purchase price, these are made up of the following: a cheque to the vendor, one to the park owner and one to the estate agent. Removals: If you decide to use a professional company to move you then it s a good idea to call them early to arrange a quote. Organising your move early will save you any last minute rush and help you move with less stress. Let us know if you wish us to organise a quote for you. Selling a Park Home FREE VALUATION: Unlike selling a house, flat or bungalow you do not require an EPC for us to sell your home. We ll give you an up to date valuation for FREE so you can see where you stand in the current market. If you decide to proceed with selling then there is nothing to delay you from going ahead straight away. We ll take measurements and photos of your property and prepare a set of property particulars to give to potential buyers. All viewings are accompanied with a member of our staff from one of the offices for added security. You will need to notify the Park Owner/Manager of your intention to sell and of any acceptable offer you receive. The Park Owner/Manager may offer you assistance with the sale of your home. You are not obliged to use their services so it is up to you if you wish them to sell your home, assist you along side our company or solely our company. A transfer fee will be payable to the park owner s. The rate for this transfer should not exceed such rate as specified by an order made by the Secretary of State, currently 10% (This applies to park homes which are members of BH&HPA and/or NPHC). Naturally most park home sites do not have the same marketing capabilities as we do and therefore will most likely have less buyers or opportunities at their disposal.

FAQ s Buying a Park Home Q. Can I live in the holiday lodge? As the name suggests holiday lodges are to be used for holidays and not as your main residence. Check with the park you wish to purchase on if there are restrictions on how long you can stay on the park. Some parks are open 10,11 or 12 months of the year and others open seasonally e.g. 1 st March to 31 st October. On seasonal parks you will need to vacate the home when it is closed, parks open all year round may not be restrictive on how long you can stay there, but you will need to have a main residence elsewhere. Q. How much do park homes cost compared to houses? The cost of a park home will vary depending on where you wish to live and what the park is offering in the way of accommodation and extras. Park home prices are affected by the property market as are houses, however you will generally find the prices much cheaper than you would pay for a comparable house or bungalow. Q. How is my interest protected when buying a park home? The Mobile Homes Act 1983 made important changes in the way the law applies to mobile home sites. The Act applies to privately owned licensed sites, and to sites owned by local authorities. The Act, which replaces sections 1 to 6 of the Mobile Homes Act 1975, came into force on 20 May 1983. It introduced important new rules about security of tenure, the sale of mobile homes and other details of agreements between site owners and residents. The Park Home Factsheet publications provide key information and basic guidance to park home owners about commonly raised issues concerning park home sites. Q. Should I only buy a park home on a licensed residents park? The protection offered by the Mobile Homes Act 1983 (Amended 2006) applies to licensed mobile home residential parks - and is not available to holiday parks. There are also important differences between a residential park home, which is designed and built for year round residential living, and a caravan holiday home, which differs in construction standards reflecting its use as leisure accommodation. So in your own interests, and to safeguard your investment in a park home you may wish to ensure that your prospective mobile home park has a local authority site licence for park home residential (not just holiday) use if you intend to live there fulltime. If in any doubt then employ the services of a solicitor. This does not imply that holiday lodges do not make good investments or great places to live, it simply highlights that you will not have the equal protection available as you will on a licensed park. You may find though that the park home still operates according to the Park Home Charter and your enjoyment in living there is no less. Q. How much are the park home fees? Park home fees are charges raised by the park operator to cover the upkeep and maintenance of the parks shared amenities and facilities. These park home fees vary up and down the country depending on the location of the park. Increases in fees can only be made in accordance with the requirements of the Mobile Homes Act 1983 (Amended 2006).

Living in a Park Home Q. What Protection does the legislation offer? Probably the most important safeguard the Mobile Homes Act 1983 (Amended 2006) offers owners of park homes is security of tenure. It also gives the owner of the park home the right to sell the park home on the park, and the right to leave the park home to certain members of the family. See the Park Home Factsheet. Q. What are the advantages on living on a Park Home? What attracts many people to park homes is the social aspect that often supports park home living coupled with a secure environment. Having a secure and social environment can come as a huge relief to the older generation that can often feel isolated in their current home. Park homes will often include an onsite manager or resident owner to lend a helping hand to any maintenance issues and add to the security of the development. Park homes provide an excellent alternative to semi-sheltered homes whilst allowing you to keep your independence. Q. Do you have to be retired to live in a park home? Some park homes will be age restricted so check first to save you a wasted journey. About 80% of people living on park homes are either retired or close to retiring but not all park homes will be age restrictive. Q. Can I bring my pet? Some park homes have a strict No Pet Policy, however other park homes may allow you to bring a pet with you, but should they pass away you may not be able to replace the pet. Naturally your pet should not cause a nuisance to neighbours or you may be asked to remove your pet. Again, it is best to check first before you come and have a look at the park home. Q. Can I make any alterations to the park home? Check with your park home agreement, but most park homeowners will allow you to make minor changes such as décor. Any major changes or additions then make sure you seek the park homeowners permission. For example fire regulations on the park home will restrict the addition of wooden sheds. Check first before you pay out for a tradesperson. Q. Am I responsible for the up keep of the park home? In most cases you will be responsible to maintain the park home to a good standard and any repairs will be down to you. Naturally this will be in your interest, as it will be to other park homeowners, to keep the standard of the park high. Q. Do I have to pay council tax? On residential sites yes you will have to pay council tax, although this is often the lowest banding. If you are buying on a holiday site then it is likely that the park home owners will pay commercial rates and therefore you will be exempt from paying council tax. Q. Are park homes expensive to run? Modern park homes are usually fitted with energy efficient boilers and are well insulated so the running costs can be very good, even older homes can be reasonable too. Recent research by Homeseeker Park Homes in eight different parks revealed that the average annual electricity bill was 281 for electricity and 384 for mains gas. These energy bills were, on average, much lower than those of a typical bricks-and-mortar house. Q. Will I be charged more for mains electricity and gas? No. The energy regulator, Ofgen, issued a Direction under the Utilities Act 2000 to ensure that: the maximum price at which mains gas or electricity can be resold is the same price as that paid for by the person who is reselling it. This is known as "pass through" and ensures that the park operator cannot sell at a premium. Q. What happens when there is no Mains Gas? When there is no mains gas, as is sometimes the case in rural areas, Liquefied Petroleum Gas (LPG) is the closest alternative. LPG is used for central heating, water heating and cooking. It can be stored in cylinders, in a tank (above or below ground) and delivered to a property via a pipeline.

top tips If you are using a removal company then it would be worth contacting them in plenty of time to give them an idea of when you wish to move. The more notice you can give them the more chance you have of booking the day you want. Be aware, the end of the month and Fridays are often the busiest times for removal companies. There will also be a lot of companies to inform of your pending move and they may not always be able to fit in with your times scales, so rather than be without broadband, sky or telephone make sure you give them enough notice. Planning ahead will help you move with less stress. Our aim is to achieve the best possible price for you and help you maximise its selling potential. The following will help get you moving 1. First Impressions First impressions count so try and show your property in the best possible light. Most potential buyers will want to look at the property from the outside before booking in to view, so if there is something adverse that could put them off then you may not even get them through the door. We don t want to lose you any opportunities, so do all you can to create the very best first impression. We are happy to guide you on this matter. Not all buyers are able to see past your personal effects and can get distracted if a place looks or feels cluttered. The home reality programmes regularly show a property before and afterwards, and how even the same buyers that previously turned down the property are now interested when seeing the property better presented. A buyer needs to imagine living in a house and this is much easier to do when a property is some what depersonalised. It s a worthwhile exercise doing a walk around your property and looking at it through the buyers eyes, you may be surprised at what you discover. 2. Be flexible for buyers to view your home You will also need to be flexible about viewing times and being welcoming to the buyers. We make a point of accompanying viewings whenever possible so it is up to you if you wish to be in, but don t feel you need to. Make sure nothing stands in the way of getting that potential buyer into your property. It may be a nuisance, but make sure your property is tidy and ready to view everyday. You may be surprised to learn how many sellers make viewings difficult, only to wonder why their property has not sold. If there is any resistance, however small, you could reduce your chances of selling. Make sure you have a For Sale board to increase your chances of selling. We want to make sure the photographs of your property are good quality and clear, so preparing your property for us to measure and photograph will help us provide better photos for your property, thus increasing your chances of selling. 3. We are here to help Following interest and viewings on your property we will be able to feedback to you what the buyers really think of your property. If there is something that is putting buyers off your property we will tell you. Don t take offence if buyers don t like something about your property, their feedback may help you make a change to your property that leads to a sale. 4. Know thy competition As part of the marketing updates we give you we will let you know what your competition is. Knowing what else is on the market and how it compares to your property will help you decide if you need to adjust your price or make an enhancement to your property to help your property stand out from the competition. If you are thinking of moving or selling then we would love to hear from you. We can let you know where you stand in the current market and how our unique approach to the property market will help get you moving.

Finance and Insurance Finance Most High Street mortgage lenders do not lend on park homes due to the unique tenure of park homes (you are not actually buying the land on which the park home is situated). However it is possible to arrange finance through specialist finance companies. Please be aware that the interest rate you will pay for such finance is usually higher than that of a conventional mortgage. You should seek professional advice from a qualified financial advisor or company. Insurance You will need to insure your home as it is not normally covered by the park or included within your park home fees. Insurance for residential park homes is provided by specialist companies, such as Towergate Bakers. Specialist insurers can offer comprehensive cover as well as contents insurance. You are likely to find that under the terms of your contract you have an obligation to insure your home, so make sure you are covered. The park home owner/manager may be able to recommend some insurance companies to you. When you want a break away from the pressures of life what better than to put your feet up in the comfort of your own place. Holiday lodges are often set in stunning locations with views over lakes, woodland or rivers offering a high degree of comfort and luxury and have become increasingly popular over the last few years, there are now over 500 Holiday Parks across the country. The lodges are usually fully fitted out with integrated kitchen appliances, fitted wardrobes, double-glazing, gas central heating, carpets, light fittings, curtains and furniture, so just bring yourselves and your slippers and get ready to put your feet up. But before you head off to put down a deposit on your new retreat you may wish to consider a few things first: Getting Away Holiday Lodges Is the park conveniently situated? Will they allow pets? Can children or visitors stay on the park? Can you Rent out the lodge for Holiday Lets? Can you Let out the lodge for longer terms? What facilities does the park offer? Is the park a member of the British Holiday & Home Parks Association/National Caravan Council Fair Trader Holiday Park Scheme? What are the costs and what do they include? What security measures do they have in place? Is there an age restriction? What are the lease terms? Can I get finance to buy a lodge? Some of the above will be answered in our Frequently Asked Questions, others you may need to do a bit of investigating yourself to see if the park suits your needs.

Looking to buy or sell Visit our website for a dedicated section on Park Homes We re doing more to get you moving If you would like further information on park homes you may find the fact sheets helpful. You can view or download them at www.communities.go.uk Search for Park Homes. Park Home Associations Built for Safety Communities and local government Park Home Factsheet Residents Rights & Obligations Express Terms Park Rules Selling a Park Home Agreeing a sale with a Buyer Completing a Sale Qualifying Residents Associations Forming a Qualifying Residents Association Rights of the Qualifying Residents Association Residents Associations that do not qualify Pitch Fee Review Chart Implied Terms amendments What it means to you Consolidated Implied Terms The Park Home Charter Agents Notes: The information contained within this guide is given in good faith for use as guidance only and is not meant for the purposes of legal advice. Should you have any queries or concerns regarding the legalities or obligations of buying, selling or owning a park home then we recommend you seek the advice of a legal representative or solicitor. The information and statements herein are provided without any responsibility on the part of Molica Franklin Estate Agents or the vendors. Copyright: This material is protected by the laws of copyright. No unauthorised copying or distribution without permission.