If you’re looking for a new place to call home in retirement, a residential park home could be an attractive option. But can you get a mortgage on a residential park home in Yorkshire? Let’s take a closer look.
Is it possible to get a mortgage on a residential park home?
In short, the answer is no, you cannot get a mortgage on a residential park home. The site owner, not the resident, owns the land on which park homes are located, which means that there is less security for the lender in the event of the lease running out.
Residential park home mortgages: What are the requirements?
The process of obtaining ownership of a mobile home can be different from that of a traditional home. One of the main differences is that lenders may have different lending criteria for park homes, as they are often considered to be a non-standard form of housing.
Requirements
Whilst you cannot get a mortgage on a residential park home, there are a range of other options available to you.
Equity build-up
The first option is to purchase the park home outright if you have equity built up in your current property. Park homes tend to be cheaper than traditional houses, and if you have the funds available, this could be a good way to secure your new home.
However, it’s important to note that park homes are usually situated on rented land. As such, you’ll need to pay a monthly pitch fee to the park owner, so remember to factor this into your budget.
Part-exchange scheme
Another option to consider is a part-exchange scheme. This can be a good way to sell your current property quickly and avoid delays. The developer of the park home you wish to purchase will buy your existing property as part of the deal.
This can be an attractive option for those who are looking for a hassle-free way to move into a new home. But it’s worth noting that you may not get the full market value for your property, so it’s important to do your research and make sure that you’re happy with the terms of the deal.
Specialist loan agreement
If neither of these options is viable, you could consider taking out a specialist loan agreement. While this is not the same as a mortgage, there are many specialist lenders who offer loans designed especially for park homes. These loans can help you access the money you need to purchase your park home, and the repayment terms can be more flexible than traditional mortgages.
One thing to bear in mind is that interest rates may be higher than those offered by traditional lenders, and you will need to make sure that you can afford the monthly repayments.
Buying a residential park home, like any property purchase, is a big commitment, and it’s important to do your research and compare the terms and conditions of different finance options before making a decision.
Why own a residential park home in Yorkshire?
Park homes are generally more affordable than traditional brick and mortar homes. This means you can potentially free up equity from your current home to fund your retirement. Residential park homes can be more low-maintenance and energy-efficient than traditional houses, making them cheaper to run and easier to care for.
But the most attractive aspect to a residential park home is the sense of community and security you’ll experience.
Residential park homes in Yorkshire with Gateforth Park
If you’re looking to buy a residential park home in Yorkshire, why not visit us?
At Gateforth Park, we have a variety of residential lodges for sale in the heart of beautiful Yorkshire. With our park homes, you can enjoy retirement living in the UK to the max — enjoy a friendly community and comfortable living spaces. Our properties are built to last and come with comprehensive warranties, allowing you to enjoy your new lifestyle without worries.
Get in touch today to finance your dream residential park home with us.