CAN I GET A MORTGAGE for A PARK HOME OR LODGE?
Mortgages which are used to buy a traditional bricks and mortar home are not available for the purchase of a park home or holiday lodge, however, finance is readily available from specialised companies.
A mortgage on a bricks and mortar home would be secured against the property’s listing on the land registry, but with a holiday lodge or park home it is slightly different - with a park home or holiday lodge, you own the home itself but not the land which it is sited on. The lease for the land it is sited on would be for a fixed period of time and in the case of leisure homes, this is often only for part of the year.
The details for the lease of the land on which your home is sited would be included in your license agreement and the length of your site lease will almost certainly impact on the terms upon which you can finance your property.
There are a number of specialist finance providers in the marketplace who understand park homes and holiday lodges and how they differ from traditional brick built properties. Finance is typically available for up to 80 per cent of the value of the home, with the loans available generally up to a maximum of 15 years. Interest rates will vary based on personal circumstances, the amount of the loan, the length of the loan and the value of the property.
When looking at finance terms on park homes or lodges, we recommend you shop around and obtain multiple quotes for the finance you require.