The Concept
Most people have heard of a similar scheme called buy to let, which is where a buyer can buy a property with the sole purpose of renting it out. The mortgages are normally agreed on the basis that the buyer puts down a deposit of typically 15-25% of the purchase price, and that the rental income covers the monthly costs of the re-payments.
Let to buy, is in a way similar, in that the rental of a property is still involved, but do not need to find the property to rent out, as they already own it!
In essence the homeowner will normally be looking to move, and if they have been unable to sell and are reluctant to reduce the selling price of their home to create a sale this is an option most people do not (but should) consider, usually because they are unaware of it as a scheme. As with most schemes, the figures do have to add up, but it is very simple.
The lender (bank/building society) will want to keep the required deposit from your equity (usually 15-25%) as the Deposit. The rest of the value of the property (net of any other loans or mortgages secured on the home) will then be yours to use, in this case, pay for your new park home.
Benefits to you
- People that wish to buy a park home, can do so without having to wait to sell their home. Assuming their property is suitably valued, and achieves the level of rental income to pay the mortgage payments.
- They can benefit from any capital growth of the property whilst it is rented out.
- They can achieve the maximum rental payments, as it is likely you will be renting the home as fully furnished, as all new Park Homes come with brand new furniture, carpets and appliances.
Important Point
If you are interested in this option call the Park Home Mortgage and Finance Specialists Park Home Assist Insurance Services, who are Independent Intermediary’s and Authorised and Regulated by the Financial Services Authority. Park Home Assist Insurance Services have access to all major Mortgage Lenders and will therefore source the most appropriate deal for your requirements.