If you are intending to purchase a mobile home, there are a number of factors that you need to bear in mind. Firstly, almost all mortgage companies will not offer a loan for the purchase and you therefore need to have sufficient funds available. Stamp duty is not payable, but you do need to remember that there are fees, often referred to as “pitch fees”, that have to be paid to the site owner for certain elements of maintenance, such as those to which you have shared access.
A number of rules, rights and protections are built in when you purchase a mobile home on a site that is for permanent occupation all year round and these are contained within the site agreement, referred to as the Written Statement. For new homes, it may be possible to negotiate with the site owner on the terms and conditions, but if you are buying second-hand, then you will almost certainly be bound by what has already been agreed. You should be aware that these protections do not generally apply to sites where you have to leave for part of the year, which are intended for ‘holiday use’ and you must therefore take care in your purchase.
Whilst many park homes have the same characteristics as those that are ‘brick built’, it is important to note that certain vital differences exist. In particular, mobile home sites do not benefit from ‘permitted development’, meaning that anything that is not a mobile home will need planning permission to be erected or placed on the land. This can include porches, sheds or pathways.
With the implementation of section 10 of the Mobile Homes Act 2013, the purchaser of a mobile home is responsible for paying the owner of the site a commission of up to 10% on top of the price of the home and it is your responsibility to notify the owner of the completion of the purchase. Previously, these were the responsibility of the person selling the home.
For more information, please visit our dedicated mobile homes website at parkhomes.licensinglawyers.co.uk