Considering your options for retirement, it’s key to plan for the long term. Financially, park homes have many benefits, both to buy and run, but a lot is still locked away in the value of the home. This naturally leads many to consider equity release.
Equity release has become a more attractive option amongst retirees, with many wanting to take advantage of their savings that are locked up in their existing house. Similar to brick and mortar homes, a common question may come to mind: is equity release possible on park homes?
What is Equity Release?
Equity release is a scheme that allows homeowners to borrow against the value of their property, receiving lump sum or regular payments while retaining ownership. The amount available depends on various factors, including your age, health, and property value. Equity release schemes are most associated with bricks and mortar properties, with homeowners of retirement age.
Can You Take Out Equity Release On A Park Home?
Lenders are more likely to secure funds against bricks-and-mortar properties because of their legal status. Park homes on a residential development are considered a ‘chattel’ (personal property) in the eyes of the law, which makes securing funds against them more difficult. Their title is rarely registered with the Land Registry due to their placement on leased land or private sites which again makes equity release less viable. For most park home residents, standard equity release is an unlikely option. That said, there are specialists out there that do deal in it.
The Broader Benefits of Park Home Living
The concept of freeing up equity does still apply to park home living. They are typically more affordable to buy and run than their bricks and mortar equivalents. This is one of the many reasons why many over the age of 55 downsize to them. As such, it provides an opportunity to release capital from your existing house, without borrowing money. You’ll hopefully end up with a significant sum of money after making your park home move.
The purchase of a new park home gives tremendous flexibility in terms of what you can afford, so you can select/design/adapt a home based on a budget that ensures that you have money left over. Moreover, there are potentially other finance services available that may be able to contribute additional funds including personal loans and specialist park home finance (although their interest rates may be higher than rates found at main high street banks).
Free Up Equity for Your Retirement
There’s inevitably a lot to consider when planning your imminent retirement and key to all of that, is often having the funds to sustain a good living standard. Park home living can be an excellent way to free up equity. Moreover, it has the potential to improve your standard of living; a park home move can offer more value than finances alone.
Visit Parklands of Lincoln
Want to learn more about how park homes could transform your retirement? Get in touch with us today. By moving to our retirement park in the heart of rural Lincolnshire, you could truly make the most out of your retirement. Enjoy:
- More money in your pocket from reduced living costs
- More time for the things you love with minimal maintenance
- Everything you need nearby in our well-connected location
- A supportive, secure community of like-minded neighbours
And best of all, your home, it’s chosen and designed by you, to your exact needs and preferences.
Open for visits every Wednesday – we encourage you to come and explore what we have to offer. Visitors are often surprised by the quality, comfort, and possibilities our homes provide.
