Problems with Leased Lots

[Michael Fasig]

I am retiring in the Spring and my wife and I have decided to permanently relocate to an over 55 MH park on the Gulf side of Florida. We have visited the area several times and surfed the internet extensively and have found several parks of interest. Now for the BIG QUESTION, do we lease the lot or buy.

Quite frankly we would like to purchase a home for $100K or less and lease the lot because we could get a much better home than trying to purchase home and land for the same money. However, I have been reading war stories about big developers coming in, buying the land from the park owner and giving the leasees 90 days to get out. And with less than adaquate compensation to make a move. This worries us emmensely because we could lose everything we have.

My question to you: are there any lease agreements out there that protect the leasee from this type of action. I'm also wondering if I would be better off financing the land because the payment would probably be close to the rental cost of the lot. Any thoughts that might help us in making this decision?

[mac]

I'd buy the land whenever possible, especially if a mortgage were required - for two reasons - first, a real-property loan (land+home) carries lower interest, due to lower risk; second, it alleviates the concern you raise.

[Gene]

When leasing in a park that is already owned by the big guys what are the liabilities regarding leases? Any thoughts about the CPI indexed increases?
Any opinions about the parks that offer "life time" leases for a set price? Has anyone read these type leases to know if there are protections if the park is sold?

We are within a few months of beginning our physical search in central Fl for a desirable 55+ park and appreciate any advice.
Thanks

[Michael Fasig]

I'm beginning to wonder if Florida will really fit our retirement dream. If I understand it correctly the closer I get to the coast with a leased lot the greater probability that a developer will come in and purchase the land from the park owner. If this happens I'm given 90 days to get out or my new home is destroyed, only receiving limited compensation for the move opposed to fair market price for my home.

If I purchase the lot it could still be taken under eminent domain. This has now become a very easy process based on the latest Supreme Court decision. In this case I am paid fair market price for my home based on "personal property" values, cost less depreciation opposed to "real property" values.


If I'm fortunate enough that developer’s will stay away and the city won't want my land for a new Walmart I have just succeeded to elute one big hurdle. However, the next hurdle is obtaining homeowners insurance at a realistic price. The more I read the more I feel this might be a real concern. Especially after last year’s hurricane record.

I'm not a pessimistic person, but this is becoming a major decision and one that could make or break us.

[Jane]

Consider resident owned parks only, there are about 40 in Pinellas County. These are primarily co-ops and a lot are almost 100% owned by the residents who are very conservative and their park won't be sold until hell freezes over.There are also a very few where you own the real estate beneath you. Most of the parks being sold are run down by private owners although one owner of a small park here gave the land to the residents when he retired.

[rmurray]

Nice resident owned park on gulf side of state with many existing homes fdor sale...

Lazy River Village..

http://www.lazyrivervillage.com/

Water fornt homes seem to be available at reasonable prices...

[darell e.]

Is there anywhere on the internet you can go to get a list of resident owned parks in Pinellas county? I know of 4 or 5, but not 40. If you must live in a 55+ park it would be best to move in one where you own a share.