Are Park Homes Leasehold or Freehold? What Every Buyer Should Know

Understanding Park Home Ownership

When looking to buy a park home, many people ask whether they are leasehold or freehold. The answer is neither. Park homes are sold with a licence agreement, often referred to as a park home ownership licence, right to occupy or a pitch agreement. Understanding these terms is important when considering a move to a residential mobile home.

How Does Park Home Ownership Work?

Unlike traditional properties, which are either freehold (where you own the land and the property) or leasehold (where you own the property but lease the land), a park home is owned outright by the buyer. However, the land on which it is situated remains owned by the home park operator. This is where the license agreement or pitch agreement comes into play.

Licence Agreement or Pitch Agreement

When you purchase a mobile park home, you enter into a written agreement with the park owner that allows you to keep your home on a specific pitch. This agreement is legally binding and outlines your rights, responsibilities, and any associated costs.

Under the Mobile Homes Act 1983, as amended by the Mobile Homes Act 2013, park home residents are given security of tenure, meaning they cannot be evicted without a legal process. The agreement will typically cover:

• The period you can keep your home on the pitch
• Pitch fees and service charges
• Your rights as a residential park homeowner
• The responsibilities of the home park operator

What Are the Benefits of a Park Home Licence Agreement?

A park home ownership licence to occupy offers several benefits compared to leasehold or freehold arrangements:

• Lower purchase costs compared to traditional houses
• No stamp duty on buying a park home
• Security of tenure under legal protections
• Community living in a peaceful environment

Things to Consider Before Buying a Residential Park Home

Before buying a residential mobile home, it's important to:

1. Review the pitch agreement carefully – Ensure you understand the terms, including pitch fees and any future increases.
2. Check the park's legal status – Some parks have a residential licence, while others are only for holiday use.
3. Understand selling rules – If you decide to sell, you must follow the correct procedure, including paying a commission to the park owner.
4. Confirm the park’s maintenance responsibilities – Check what services are included in your fees.

Park Home Living at Crowsheath Estate

At Crowsheath Estate, we offer high-quality residential park homes in a well-maintained and secure environment. Our homes are set in beautiful surroundings, providing a peaceful lifestyle while still being within easy reach of essential amenities. If you are considering moving to a home park, we can guide you through the process and ensure you understand your rights under your licence agreement.

Find Your Perfect Park Home

If you're looking for a mobile park home in a residential park, contact Crowsheath Estate today. We can help you find the ideal home and answer any questions about park home ownership and pitch agreements.