When wondering whether a mortgage is applicable on a ‘dwelling’ of any kind, there is one golden rule to always remember: a mortgage is taken out against a property’s Land Registry listing. Therefore, if a property you would like to purchase or are considering investing in is not listed on the UK government’s lad registry list, you will not be able to apply for or secure a mortgage in order to purchase it. It really is that simple.
‘Mortgageable’ Types of Holiday Homes
So, can you take a mortgage to purchase a holiday home? Potentially, yes. It is not, after all, what a home is bought, sold or used for that determines whether it is mortgageable; it is, remember, whether it is listed as land registered. Therefore, a ‘dwelling’s’ purpose may affect the type or conditions by which you can secure a mortgage, but it what a ‘dwelling’ is made of that will determine whether it is mortgageable.
So, brick and mortar holiday home properties will almost always be mortgagable as they are sold along with the land upon which they permanently reside. That is, should you choose to demolish the entire property, as the owner, you will almost certainly retain the right to the land upon which it sits – or sat, as the case may be. Hence, you can subsequently and consequently rebuild or otherwise use the land, in accordance (of course) with building regulations and any land uses the land is fixed with.
Further, this is true whether you purchase a holiday home within the UK or abroad and you can learn more about buying property overseas via the information contained on the Right Move Property website or, alternatively, by contacting us here at Search Mortgage Solutions.
‘Non-Mortgageable’ Types of Holiday Homes
In contrast, holiday homes of a mobile or movable nature, such as caravans and trailer and park homes like those bought and sold independent of the land upon which they exist or are situated cannot be as such registered on the UK land registry and so cannot be mortgaged. In some cases a caravan, trailer home or park home may be sold or bought along with a lease for the land upon which it resides, but then the right to remain upon that land is due to having leased it. Hence, you do not own the land, despite owning what currently resides upon it.
It may seem obvious to state that mortgages are not applicable when purchasing for example a caravan or motor home, despite the fact that both are used as ‘dwellings’ and may even be permanently occupied or provide a person with a long term home. It is less obvious when purchasing a park home or lodge property like those bought, sold and advertised by Sell My Lodge which for all intents and purposes share more similarities aesthetically with a bricks and mortar built dwellings.
Further, because park home properties and dwellings are often sold via estate agencies, many believe they are bought and sold in much the same way as brick and mortar buildings and properties. The fact remains though; neither park homes nor lodge homes can be mortgaged. Consequently, when purchasing a park home or lodge property, buyers who require finance or a loan are required to take out finance such as that offered by UK Park Home Finance.