Buying and Selling a Park Home

Holiday Parks

By choosing to buy a lodge to use as your permanent residence on a holiday park you are exposing  what for most of us would be our main asset to great risk.  If and when the Local Council finds out that holiday homes are being used for residential purposes, they can prosecute the park owner for either breach of his/her Site Licence Conditions or for breach of his/her Planning Consent. They may also serve an Enforcement Order directly upon the resident to remove their lodge from the Park.  We do advise you not to take this risk.  You will have no protection under law.  The full protection of the Mobile Homes Act 1983, amended by the Mobile Homes Act 2013 will NOT apply to you.  A responsible holiday park owner will ask to see proof of your primary residential address away from the park at regular times, to ensure that no one is breaching their Site Licence Conditions.

Part Exchange Schemes

Part exchange allows you to trade in your bricks and mortar home as part payment for a new build property.

PX, as it is known in the industry, enables you to trade in your home as part payment for a new build park home bought from a site owner or manufacturer.  This offer sounds like a blessing if you are struggling to find a buyer, want to be chain-free, and avoid estate agents’ fees.

Many Site Owners and/or Manufacturers are offering part exchange schemes.

But beware that when they offer to take your home in part exchange, there is at least as much in it for them as there is for you.  Many site owners are vague at how they arrive at the value of your bricks and mortar home.   Most claim they will get at least two estate agent valuations for your home and then make an offer.  Do check yourself how much your home is worth before you enter into a part-exchange contract and always use a solicitor experienced in Mobile Home law.

There are certain circumstances where it might be worth suffering a small loss on your existing home to land the home of your dreams, for example, if you’re struggling to sell or if you need to relocate quickly to be near a relative, for a new job or the start of the school term.  It is worth negotiating as hard as you can, however, and not accepting the first offer that is made to you.  As well as negotiating on the part-exchange price, don’t forget to also negotiate the price tag for the new park home as you would in a normal transaction.

Part exchange is one of a number of marketing ploys used by developers; others include providing white goods or paying moving costs.  Henry Pryor, a property expert, stresses that none of these are used for charitable reasons.

If you’re getting market price for your old home then you will be paying over the odds for the new one,” he warns.  Any incentives you may have accepted will have gone on the bill.

Bear in mind that not all homes will be deemed suitable for PX.  Properties commonly excluded from schemes include any deemed unmortgageable, those with structural defects, and leasehold flats with fewer than 80 years left on the lease.  Essentially, those offering part exchange only want to buy properties they are pretty confident they can sell on without too much trouble.

Park Home FAQs | Parkhome.org.uk

We have recently been informed that person(s) have been randomly knocking on doors of residents of various sites asking to see their Agreements. They are purported to have stated a financial company has asked them to undertake a survey.
Should any residents get a visit of this nature then our advice is to not give anything whatsoever to the person asking for the information and politely tell them to leave your property.
You should not, in reality, be giving strangers who come knocking on your door without an invitation any personal information or copies of any personal information

England

Purchasing a Residential Home (important notes)

  • If you purchase a second hand home from the home owner, the pitch fee you pay remains the same as the seller was paying and can only be increased at the next pitch fee review date by the RPI.
  • The site owner is not permitted to handle the sale money.  They are only entitled to a commission of up to 10% of the sale price of the home alone (furniture, shed, garage, etc. are not included in this 10%) from the buyer.  This does not apply if you purchase a second hand home from the site owner.
  • When you are considering purchasing a new home from a site owner, the law (Housing Bill Part 6, Chapter 3, Mobile Homes) states… “you must receive a copy of the written statement/agreement not later than 28 days before the date on which the agreement is made.”  You may consent in writing to a lesser period if you so desire.
  • The age of the home is no longer a relevant factor or an excuse for site owners to refuse their permission to assignment of an agreement to a purchaser.
  • The seller notifies a site owner in writing, using form Schedule 2 Notice of Proposed Sale Form (The Mobile Homes (Selling and Gifting)(England) Regulations 2013 SI 2013/981) that they have a prospective purchaser and requests approval to assign the agreement.
  • The site owner must respond to the seller in writing within 28 days giving/withholding his approval to the assignment.  If approval is given subject to any conditions he must specify those conditions.  If approval is withheld he must specify his reason for withholding it.

New Site Owner.

If/when a new owner takes over a Residential Park, the Agreement/Written Statement you have with the previous site owner is binding on the new site owner and can not be altered.  In other words the new owner cannot force you to accept a new agreement or alter your existing one.

MHCLG Forms.

There are the essential forms available for buyers and sellers of mobile homes as well as forms for ‘gifting’ a home. At the moment these are only applicable in England. If forms are produced for Wales, Scotland and Northern Ireland, they will be added to the website in due course.

For more information visit https://www.gov.uk/government/collections/park-homes#selling-or-gifting-a-park-home 

Excellent guidance is also provided by Park Homes For Sale.  Please follow the link to their website. Their Buying a Park Home page takes you through the process of purchasing a park home from start to finish (parkhomesforsale.co.uk)

WALES

Buying or selling a park home

Step 1. If you are selling your park home, you must fill in a buyers information form and send it to the buyer to complete.

Step 2. You and the buyer must fill in a notice of proposed sale form and give to the site owner. This form tells them about the proposed sale.

Step 3. You and the buyer must fill in an assignment form. This form confirms the home has moved over to the new owner.

Step 4. You and the buyer must fill in a notice of assignment form and send it to the site owner. This form is the final confirmation that the home has been moved over to the new owner.

Gifting a Park Home

You can give your park home away as a gift to a family member.

Step 1. You must fill in a notice of proposed gift form. You need to include proof that the person you are giving your home away to is a relative.

Step 2. Give the completed form to the site owner, letting them know about the change.

Scotland

Park Home owners may now market their park home in the same manner as bricks and mortar homes.  They may employ the services of an agent or sell privately and in both cases have the right to display advertising material on the pitch and on the home without the need for any permission from the site owner.  The home may also be advertised freely in the media and the site owner has no locus in the matter nor can the site owner require advance notice of an intention to sell.  The site owner DOES have the right to receive UP TO 10% (Maximum) of the sale price as a commission, depending on the individual written agreement.

In Scotland, the regulations differ from those in England in that there is no formal procedure or form filling laid down by law.  While informal, sellers should be aware of their responsibilities under contract law as well as the Mobile Homes Act provisions and ensure that all the information given to a prospective buyer about the property, its location, condition, the written agreement and the park rules is completely accurate and not misleading in any way.

Another thing to bear in mind is that there is no legal conveyancing process with a park home.  In law, a Park Home is a chattel and not a property in the normal sense.  While you own a park home and it is in every way a ‘home’ you do not own the land it stands on and this is what makes it different.  In a bricks and mortar situation, most owners also own the land that their house stands on and it is the land that is legally conveyed and registered, not the house!  In a park home situation therefore, there is no legal requirement to employ a solicitor since there is no legal process but as in any major financial transaction you should seek professional advice.

Further information can be found here.

Mobile home owners in Scotland: guidance – gov.scot (www.gov.scot)

Residential mobile homes (park homes) – Homeowners – gov.scot (www.gov.scot)

Northern Ireland

CARAVANS ACT (NORTHERN IRELAND) 2011 A GUIDE FOR RESIDENTIAL OCCUPIERS AND
SITE OWNERS

Sale of the Caravan

An occupier has the right to sell his/her caravan on the site and transfer the benefit of their agreement with their site owner to the person who buys their caravan. The process of passing on the agreement is called ‘assignment’. The sale must be to a person approved by the site owner but the site owner cannot withhold his approval unreasonably. If an occupier considers that the site owner is withholding their approval unreasonably, the occupier can apply to the court for an order requiring the site owner to give approval. When the site owner receives a request from the occupier for approval, he or she must within 28 days from the date on which the request is received, approve the person unless it’s reasonable not to, and serve the occupier with a notice of the decision whether or not to approve the person. If approval is withheld, he or she must specify in writing the reasons for withholding it.

If the site owner fails to notify the occupier within 28 days of the decision then the occupier may apply to the Court for an order to declare that the person is approved.

Does an occupier have to give the site owner first refusal to buy the caravan?

There is no requirement for an occupier to give the site owner first refusal – even if their agreement says there is. The site owner may make an offer for the caravan like any buyer and the occupier may choose to sell to them but they are under no obligation to do so. Some agreements may include reference to a site owner’s ‘right’ of first refusal to purchase the caravan, but it is doubtful whether such a provision is enforceable

Does an occupier have to tell the site owner that they are proposing to sell their caravan?

No. There is no legal requirement for an occupier to tell the site owner that they are proposing to sell their caravan, though they are free to do so if they wish. However, once they have found a buyer they must seek the site owner’s approval of that person.

Agreeing a Sale with a Buyer

Should an occupier give the prospective purchaser a copy of their written agreement?

Yes. This will allow the buyer to familiarise themselves with the terms of the agreement.  It is the occupier’s responsibility to ensure that they give full and accurate information to their buyer so that they can make an informed decision about whether to proceed. Failure to do so may result in the sale falling through at a later stage. Where the sale goes ahead, if an occupier during the sales process fails to reveal relevant information that is available to them, they may be held liable for misrepresentation if the buyer encounters problems in the future.

How does an occupier seek approval of their buyer from their site owner?

The occupier should write to the site owner giving details and seeking the approval of the proposed buyer.  The site owner must provide the occupier with a reply in writing within 28 days. The 28 day period starts from the date the site owner receives the occupier’s request and ends when the occupier receives their reply in writing. The occupier may find it helpful to use a recorded postal service.

The site owner may only approve the person or refuse approval. They cannot attach conditions to the approval. If they refuse approval they must include the reasons for their refusal in writing in their reply.

If the site owner does not give a written response within 28 days or if they refuse approval or fail to give the reasons for the refusal in writing, an occupier may apply to the court for an order that declares that the person they intend to sell to is approved. The court may accept or reject the application.

Does a site owner need to contact a buyer in order to approve them?

The law does not require a site owner to contact a buyer in order to approve them. The site owner may reasonably ask for references, for example, to establish the buyer’s credit worthiness and show that they will be able to comply with any rules of the site.

A buyer may wish to meet the site owner in order to gain a greater feel for the site and to ask any specific questions they may have. Parties must act honestly in all their negotiations and communications.

Completing the sale

Can a site owner claim a commission on a sale?

Yes. The site owner can claim a commission set at a maximum of 10 percent of the sale price. Site owners can charge a lower percentage than the legal maximum if they wish but they cannot charge a higher one. The rate should be set out in the occupier’s written statement.

Can a site owner change the terms of the agreement for the buyer such as increasing the pitch fee?

No. The terms of the agreement are assigned unchanged to the buyer and cannot be changed unilaterally by the occupier, the site owner or the buyer. The site owner cannot change the pitch fee or levy any additional charges on assignment. However, the site owner and the buyer may agree to amend the express terms of the agreement between them if that is what they both decide.

Gift of the Caravan

An occupier can only give their caravan, and pass on their agreement, to a member of their family. The gift must be to a person approved by the site owner, who cannot withhold their approval unreasonably. If an occupier considers that the site owner is withholding their approval unreasonably the occupier can apply to the court for the issue of an order declaring that the purchaser is approved so the gift can go ahead. The site owner is not entitled to receive commission if the occupier gives the caravan to a family member.

If the occupier’s spouse was living with him or her in the caravan when he or she died, that person will inherit the agreement with the site owner and all the rights he or she had. If there is no such spouse, any member of the occupier’s family who was living with him or her in the caravan when he or she died or if no such person was residing then the person entitled to the caravan by virtue of the deceased’s will can inherit the agreement and his or her rights. For the purposes of the Act “family” means a wife or husband, civil partner, parent, grandparent, child, grandchild, brother, sister, uncle, aunt, nephew or niece. Any relation by marriage or civil partnership or of half-blood counts as a full relation. Stepchildren and adopted children are also included, as are people living
together as husband and wife. In these cases, the rights given by the Act and the  terms of the agreement and the written statement will all continue to apply.