Buying a park home for holidays or retirement might seem like a great idea, but many purchasers regret taking on this type of property. We look at some of the most common problems.
A park home is a mobile, pre-fabricated unit, similar to a bungalow, chalet home or lodge, set on private land. You can either rent or own the property, but you will not own the land on which it is situated.
The land owner will make rules governing the use of the property and will charge fees for occupying the land and for utilities and other services.
The sector is unregulated, and many individuals have alleged that site owners have been unscrupulous in their dealings with them.
Problems with park home ownership
If you are thinking of taking on a park home property, it is essential to take advice from an experienced property solicitor, as well as carrying out your own investigations into the site, before agreeing to anything.
Issues that have arisen with park homes include:
Paying more than the park home property is worth
Some buyers who have tried to sell their property not long after buying it have made substantial losses. The BBC interviewed a couple who purchased a holiday caravan for £62,400. When they tried to sell it, they were only offered £17,000. They agreed to sell it back to the holiday park for this sum. At the last minute, the offer was reduced to just £16,000.
Misleading information about potential income
The BBC interviewed another couple who bought a holiday caravan on a holiday park, hoping to use it themselves as well as rent it out to other families.
The rental income was far below what they allege they were told it would be by the park owner, and once the holiday park owners had taken their fees, the sum remaining was only £200, and did not meet their costs. They lost £50,000 in two years and ended up handing back the home.
The BBC say they have also been told that sales staff have made misleading claims about potential income.
Another issue experienced by holiday park home owners is that when they try to rent their home out, they are in direct competition with the holiday park, which will own properties on the site itself. The park is often able to offer lower rates and throw in extras, such as free use of the park’s facilities.
Unexpected or escalating costs
Other owners have found that the park’s costs have taken the majority of any rental income made. The charges can escalate over time, and owners have found that increases have forced them to sell, with one owner having to take just £17,500 for a home that cost them £69,000.
The BBC heard allegations that in some cases, site fees were increased sharply and without any warnings.
Difficulty in selling the park home property
There is only a small market for park homes, meaning that buyers are sometimes forced to sell the property back to the site owner if they are prepared to make an offer. This is often at a sizeable loss. Owners told the BBC that they felt pressured to sell the property back to the park.
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