Can Park Homes be resold?
Yes, Park Homes can be sold on the open market, although the new purchaser must comply with the Park Rules in force. This is especially important on residential parks where there may be a restriction on the age of prospective residents. Red Deer Village is exclusively for 50+ residents.
The park owner is entitled to a commission share of the sale, which currently stands at 10%. This transfer fee is not comparable with commission payments made to Estate Agents. rather it reflects the fact that the pitch and the amenities of the park add to the resale value of the home. It also reflects the fact that the value of the home is likely to have increased (because the land has increased in value) and the resident is paying the park owner for a share in that increased value. Transfer fees supplement the income the park owner receives from pitch fees and without them, pitch fees would have to be higher.
Since September 1st 2013, the 10% Commission fee has become the responsibility of the purchaser and should be deducted from the agreed purchase price of the home. this means that the occupier would receive 90% of the sale proceeds and the park owner would receive the other 10% of the sale price. If the 10% Commission fee is not paid to the owner then the assignment will be deemed not to have taken place.
Considerable investment is necessary to develop and maintain a licensed park home estate. A reasonable return on this investment is essential to ensure that the park continues as a viable concern in the interests of both the home owner and the park owner.
The homeowner is not required to tell the park owner that they intend to sell the home, however the homeowner may offer to sell the home to the park owner, although this is not a legal requirement, if the park owner is not interested in purchasing the home the Homeowner may enlist the help of a local estate agents or other marketing channels. However, Estate Agents’ fees are payable on top of the transfer fee due to the park owner.