Mis-selling of residential park homes – Don’t fall into the trap.
Mis-selling of residential park homes – Don’t fall into the trap.
Park homes are seen as an attractive housing option for those who may be retired and looking to downsize, or for those looking to benefit from the community living style of residential parks.
Although park homes are often more affordable than traditional bricks and mortar properties, they remain significant financial investments for most residents. However, because many buyers of park homes do not use a solicitor to advise them, they often only discover potential problems after they have bought the home and moved in, which can result in potentially devastating financial losses down the line. One such problem in the industry is “residential misuse”, where homes on holiday parks are mis-sold to unwitting buyers as having residential protection.
Earlier this year, the BBC Panorama programme reported on the plight of a number of people who had bought park homes intending to live in them as their main homes, only to discover later that their sites actually only had permission for holiday use. This meant that the occupiers were not protected by the legislation which protects permanent residential occupiers, and also that by living on the site they were in breach of the planning permission for the land, leaving them open to potential enforcement action by the Council, which in turn substantially reduced the value of their homes, as they could only be sold on as a holiday home.
However, this situation can be avoided by taking a few simple steps.
First, if you are looking to buy a park home to live in as your only or main residence (as opposed to a holiday home), we would always recommend reviewing the site licence and conditions issued by the local authority to the site owner. The site licences should always be displayed in a prominent place on each site, or a copy can be requested from the local council. The site licence will confirm:
- Whether the site is licensed for use as a residential, holiday or mixed-use site; and
- The maximum number of homes permitted to be on the site.
Second, you should always ask the park owner or (if buying a used home) the seller of the home for a copy of the occupation agreement that you will receive if you purchase the home – this should make clear whether the agreement allows permanent residential use or holiday use only.
Finally, it is advisable to seek specialist legal advice before handing over a substantial amount of money, to make sure that what you are buying is in fact what you believe is the case.
Should you require assistance in your park home purchase or would like to view the packages we offer for residential park home purchasers, please download a copy of our brochure, detailing our services and fees. Alternatively, to speak to one of our specialist park home advisors, please call us today on 03456 381381 or email parks@ibblaw.co.uk.
