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Retirement developments...catch?

bobbymotors
bobbymotors Posts: 746 Forumite
in House buying, renting & selling
Can anyone enlighten me as to the various catches (if any) with these places as they are 60+ only and you appear to be able to get a better place for your money?
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Comments

  • Guest101
    Guest101 Posts: 15,764 Forumite
    bobbymotors wrote: »
    Can anyone enlighten me as to the various catches (if any) with these places as they are 60+ only and you appear to be able to get a better place for your money?



    To buy or to rent?


    Presumably to buy? You should read the lease carefully. Otherwise I would say they are simply harder to sell due to limitations of buyers.
  • aneary
    aneary Posts: 921 Forumite
    The service charge tends to be a lot higher as they have wardens etc.
  • bobbymotors
    bobbymotors Posts: 746 Forumite
    Guest101 wrote: »
    To buy or to rent?


    Presumably to buy? You should read the lease carefully. Otherwise I would say they are simply harder to sell due to limitations of buyers.

    yes, to buy.
    And when you die can you pass the lease on?
  • theartfullodger
    theartfullodger Posts: 14,591 Forumite
    Name Dropper First Anniversary First Post
    edited 19 June 2017 at 5:06PM
    Indeed, as guest says: And service charges

    This may help
    https://www.ageuk.org.uk/Documents/EN-GB/Factsheets/FS2_Buying_Retirement_Housing_fcs.pdf
    - and this
    http://www.housingcare.org/elderly-uk-sheltered-housing.aspx
  • kingstreet
    kingstreet Posts: 38,763 Forumite
    First Anniversary Name Dropper Photogenic First Post
    Restricted sales market = unmortgageable.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • Guest101
    Guest101 Posts: 15,764 Forumite
    bobbymotors wrote: »
    yes, to buy.
    And when you die can you pass the lease on?



    It's not a catch all situation. Which is why it's vital to read the lease carefully.


    Sometiems yes, sometimes no.
  • Tiners
    Tiners Posts: 232 Forumite
    High service charges

    High ground rent

    Substantial depreciation especially when bought from new.

    Onerous and expensive catches in the lease (management co charging for a 'sales pack' when you come to sell and taking a percentage of the value when you do eventually manage to sell are just 2 examples).

    Intransigent/incompetent management companies... they will make it as difficult as possible for you to sell on, in an ideal world they would like a block full of empty, unoccupied retirement apartments, as someone will still be having to pay the ground rent, leasehold charges and management fees even if the occupant has moved out or died.
  • eddddy
    eddddy Posts: 16,432 Forumite
    First Anniversary First Post Name Dropper
    Retirement properties are often higher density - which makes them cheaper to build in the first place.

    Properties are not mortgageable, but typically owners are in their 70s or 80s - so couldn't get mortgages anyway.

    (Often, the owners are widows/widowers downsizing from 'empty-nest' homes, with paid off mortgages.)


    Service charges are high, probably because...

    - They often have a warden
    - They often have communal areas (e.g. a lounge)
    - If they are flats, they will have lifts
    - Often the lease makes the freeholder (mgmnt co) responsible for...
    .. - Plumbing/bathroom fittings/ kitchen fittings in the flat
    .. - Heating in the flat
    .. - Electrics in the flat

    (e.g. If the heating breaks down or needs replacing, it's the freeholder's responsibility.)

    Look out for 'deferred service charges' which are payable when the property is sold.

    In London, they seem to increase in value at the same pace as other properties - don't know about elsewhere.
  • theartfullodger
    theartfullodger Posts: 14,591 Forumite
    Name Dropper First Anniversary First Post
    Mortgages are available to those in late 60s, early 70s
  • kingstreet
    kingstreet Posts: 38,763 Forumite
    First Anniversary Name Dropper Photogenic First Post
    theartfullodger wrote: »
    Mortgages are available to those in late 60s, early 70s
    Yes and also include lifetime products and equity release.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
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