Retirement Apartments

My father lived his last years in a retirement flat and it was fine when we came to sell, no issues, no weird charges, and indeed it sold very quickly. So I think they are not all equal.

It’s really worrying, especially when you think about the children left to deal with everything after their parents pass away. You’d expect a retirement apartment to give you peace of mind, not become a financial burden for your family. The rising service charges are shocking too, particularly when the property has lost so much of its value. I can understand why the programme put you off buying one. There really needs to be more transparency about the costs and what happens when the owner wants to sell.

The difference in whether Council Tax is paid seems to rest on whether the property has been past to the beneficiary or not. I imagine this applies to any property.

The payment for services seems to vary according to the lease and how helpful your Freeholder decides to be.

Taking a long time to sell is just the same as in houses. If you overprice it it could mean a wait. Some positions/sizes are easier/harder to sell.

AI suggests the following:

The practical approach when selling an inherited flat

I would suggest that the executor or beneficiary's solicitor:

Establish who legally owns the leasehold interest and whether probate or letters of administration have been granted.

Notify the local council of the death and confirm the applicable Council Tax exemption and the date liability begins.

Request a full service-charge and ground-rent statement from the freeholder or managing agent.

Check whether any outstanding sums are validly due and whether any charges are disputed.

Establish what must be paid or documented for the leasehold sale to complete.

This can help avoid paying charges that are not properly due, while reducing the risk of a sale being held up by an unresolved account.

placidoii

It’s really worrying, especially when you think about the children left to deal with everything after their parents pass away. You’d expect a retirement apartment to give you peace of mind, not become a financial burden for your family. The rising service charges are shocking too, particularly when the property has lost so much of its value. I can understand why the programme put you off buying one. There really needs to be more transparency about the costs and what happens when the owner wants to sell.

Your interpretation of the programme makes me feel it has been framed in a particular way and this cheers those looking for problems. Selling a property isn't simple whatever it is. It is transparent but it is also a legal process so it's sensible to seek advice.

No point in making a programme about a hunky dory situation. Of course it has to be slanted to the negative

I really wish I could move into a retirement property that was freehold and with its own small garden because of my dog. There is a retirement village close to me that I could never afford but also in the same village small bungalows for the over fifties but they have a caretaker and a communal laundry and garden.

MayBee70

I really wish I could move into a retirement property that was freehold and with its own small garden because of my dog. There is a retirement village close to me that I could never afford but also in the same village small bungalows for the over fifties but they have a caretaker and a communal laundry and garden.

Maybee. Are the little bungalows with caretaker social housing? A lady I know sold her small house as she could no longer manage the stairs and got one like this. It is lovely and she is very happy there. Obviously as she has the proceeds of sale of her house she has money so she pays full rent but she is happy to do so. I hadn’t realised this was possible.

Aveline

No point in making a programme about a hunky dory situation. Of course it has to be slanted to the negative

You may see life that way Aveline. I choose not to. I think you have just described the the difference between brainwashing and learning. I definitely prefer the latter.

MayBee70

I really wish I could move into a retirement property that was freehold and with its own small garden because of my dog. There is a retirement village close to me that I could never afford but also in the same village small bungalows for the over fifties but they have a caretaker and a communal laundry and garden.

I believe we should be doing more to keep people in their homes. This might help. Bungalows seem to be a precious commodity in social housing though. You wouldn't have anything to pass on from that source though which seems, for some, to be more important than their autonomy.

Re 'learning' comment - real learning would include the other side of the situation. The retirement complexes that are not leasehold and don't have exorbitant charges. TV commissioners are unlikely to buy a programme like that. No brainwashing here, just clear thinking.

Primrose53

MayBee70

I really wish I could move into a retirement property that was freehold and with its own small garden because of my dog. There is a retirement village close to me that I could never afford but also in the same village small bungalows for the over fifties but they have a caretaker and a communal laundry and garden.

Maybee. Are the little bungalows with caretaker social housing? A lady I know sold her small house as she could no longer manage the stairs and got one like this. It is lovely and she is very happy there. Obviously as she has the proceeds of sale of her house she has money so she pays full rent but she is happy to do so. I hadn’t realised this was possible.

I don’t think they are social housing. When the estate was built I think they had to build a few custom built properties for the elderly. This was before the huge Richmond Village was built. They still take ages to sell, though. And annoyingly, unlike my own village it isn’t on a regular bus route. There are some flats in my village for the elderly but apart from the ground floor ones they are up a flight of stairs so people move into them and a few years later find themselves struggling to climb them. They do, however have some small bungalows with gardens which I might enquire about. Although I feel a bit depressed realising that I’m contemplating living in one as the people in them seemed positively ancient when I first moved here and, whichever one I live in I would have known the previous tenant quite well and I was very fond of all of them.

I believe we should be doing more to keep people in their homes. This might help. Bungalows seem to be a precious commodity in social housing though. You wouldn't have anything to pass on from that source though which seems, for some, to be more important than their autonomy.

One of the attractions of these developments is the security and company they give. There are many lonely isolated people living alone in bungalows.

What is needed is regulation of this sector of the housing market. Those living in them should be entitled to see the complete accounts and be able to question the Lessor about how charges are reached. They should be able to ask to see the competitive quotes the lessor received before signing up with a specific service supplier. They should also be able to see the specifications issued by the lessor.

Exit charges should be limited to the actual costs, legal and administrative, that the change of flat owner entails. Better still would be to rent one, rather than buy it.

M0nica I found your comments about retirement flats and transparency interesting, as I own a leasehold retirement flat myself.

My own file for my flat is one of the largest I have, because the management company does provide a considerable amount of information about the accounts and services. Some is required by law, and some seems to be good practice on the part of the management company/freeholder

As I understand it, leaseholders have statutory rights to obtain summaries of service-charge costs and inspect the supporting accounts and receipts. There are also consultation requirements for certain major works and long-term contracts, which can give leaseholders an opportunity to examine estimates and comment on proposed arrangements.

However, I don't think the law necessarily requires a landlord to send everyone a complete set of accounts, all the competing quotations and every specification for every service as a matter of course. There is a difference between having a right to request information, having a right to be consulted in particular circumstances, and receiving all that information automatically.

There are also rights to challenge service charges that have not been reasonably incurred, or where the work or services are not of a reasonable standard.

Exit fees are another issue - my solicitor made sure I was aware of the way our sinking fund works. As I understand it these can be written into retirement-flat leases, and that there isn't a general rule limiting every such fee to the actual legal and administrative costs of a sale. The wording of the lease and the circumstances matter.

I think we should recognise and welcome management companies that provide good information voluntarily, while also ensuring that residents know what they are legally entitled to ask for.

I can see also the attraction of renting rather than buying in a retirement development, as it may avoid some of the complications of leasehold ownership. We have some rentable ones in our town but I have a feeling they are few and far between.

DAR I am not suggesting that everyone gets all the accounts and supporting papers but that those living in the flats should be entitled to see them, if they wished.

One of my first tasks when I worked for Age Concern was helping a community of people living in some charity run flats where annual maintenance costs were rocketing. Because I have some accountancy experience and the charity let me see the backing papers. I was able to untangle the problem, which related to how heating bills were recorded. This led to a reduction in their charges.

Well done you. I think, perhaps, we need more Monicas to go round. Putting people at ease with knowledge has to be one of the kindest things anyone can do.