Are park homes leasehold or freehold?
Park homes are neither leasehold nor freehold because, under the Mobile Homes Act 2013, the land on which they stand remains the sole property of the site owner. So, while the park home itself will be yours outright, the land is not included in the purchase price, nor is it leased from the owner under a leasehold agreement. Instead, you’ll sign a site agreement, and pay an annual ‘pitch fee’ to rent a plot of land from the site owner — you can find out more about this in our guide to park home costs.
While the site agreement might seem similar to a traditional leasehold agreement, it’s important not to conflate the two. The key difference is that a leasehold property reverts to the landlord (or 'freeholder') after the fixed period is up, while a park home will belong to the owner even after the site agreement ends. However, once this expires, you will either need to renew the agreement, or move your park home to a different plot or site.
Under the terms of your agreement with the site manager, you’ll still need to make sure your park home is well maintained and kept in a good condition, although you can always use our maintenance and repair schemesif you would prefer to let someone else take care of the hard work.
Because you won’t own the legal title to the plot and there’s no formal leasehold agreement to secure the property, you can’t take out a mortgage to buy a park home. This legal distinction can also affect the value of the park home over time.
Living on a park home estateis rather different to living in a traditional home on a residential street, and if you’re approaching retirement or looking to downsize, it can certainly be a very appealing option. If you’re currently in the process of buying a park home, and would like to learn more about maintaining and caring for your new home, then contact our team.