Retirement flat management fees

fishergelic

I am considering moving to a retirement flat, as I can't manage my small house owing to ill health. I am on a very low income, but I have savings. I am hoping there will be some equity left from the house sale as the flat should be cheaper. However not knowing how long I might live, I might run out of capital/savings in my 80's, and find it difficult to meet the management fees. What currently happens to people who are in this position? I know we can't know what benefits will be available some 15-20 years hence, but this must affect some people now! I am in the position of not being eligible for social housing, (understandably), but not able to afford the other retirement options long term. Any advice?


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Errata

You might find the cost of buying a retirement property will more than equal the money you get from selling your home; they tend to be quite expensive.
Should that be the case, the management fees can be anything between £25 and £40 a week now. What they might be in 20 years time is anyone's guess, as is what financial support the government might offer by then.

missile

You might want to consider renting rather than buying. Use the capital released to enjoy your golden years.

lessonlearned

Can you stretch to a small bungalow. All the benefits of a flat ie. single storey living but no management fees.

Savvy_Sue

fishergelic wrote: »

I am in the position of not being eligible for social housing, (understandably), but not able to afford the other retirement options long term. Any advice?

Have you checked the social housing options in your area? If you are after sheltered accommodation, you may find that you are eligible, because the income rules are not so rigid for that.

teajug

Savvy_Sue wrote: »

Have you checked the social housing options in your area? If you are after sheltered accommodation, you may find that you are eligible, because the income rules are not so rigid for that.

If you are able to get sheltered accommodation make sure you dispose of most of your belonging as there are very small indeed. However, it will expect it depends on the country that you move to. I know a person that lives in one of these flat in a salubrious area of London and it is very small but well looked after.

Best of Luck

namecheck

lessonlearned wrote: »

Can you stretch to a small bungalow. All the benefits of a flat ie. single storey living but no management fees.

That idea could be right for some people.

However, the OP would still have to deal with, and pay for, the maintenance of the property and the garden. And bungalows can be pricey as they are perceived as being ideal for retired people.

There is also a potential security issue with bungalows, eg would you feel happy with your bedroom window open at night.

Savvy_Sue's suggestion is a good one.

baxtor

missile wrote: »

You might want to consider renting rather than buying. Use the capital released to enjoy your golden years.

I am renting a flat now that I am not at all happy in, although the rent is reasonable. Like the o/p I have some savings but not a high income.

I want to use my capital so I can live somewhere I can feel comfortable and at peace in so I can hopefully, enjoy a few more "golden years".

What I plan to do is to look for a much better flat or bungalow that I can easily afford using my savings and income.

It is some time since I was in the position of hunting in the private sector for somewhere to live and I was wondering what the attitude of landlords and estate agents is to older people. Is there any discrimination?

Also, I wonder if landlords are happy to take on people who can afford their rents with the capital they have got but may fall a little short on the assessment of income.

I agree entirely with missile; that savings should be used to improve quality of life. The place where you live is key to improving that quality of life.

lessonlearned

It all depends where you live of course but in my area there are bungalows available as part of sheltered accommodation schemes, available to own outright, shared ownership or rent only.

I think spend some time having a good "google" to explore all your options and then go and have a look at a wide variety of different types of property.

The problem you will always have with flats, either rented or owned is that the management fees can be astronomical, especially if the apartment block contains a lift.

I am currently looking at downsizing too and I have been pleasantly surprised at the cost of bungalows. I think they have been rather looked down upon in recent years and have fallen out of fashion. They can represent really good value for money.

Whilst security can be an issue I think if you are reasonably security conscious and put a few precautions in place you should be ok. Decent fences and a gate, plus an alarm should be sufficient. Good locks and bolts.

If you are really nervous then a CCTV camera can be installed for very little.

Unless you live in an apartment block with secure entry or one that is in a gated community then you will still have safety and security issues and of course a ground floor flat is just as vulnerable as a bungalow. I would say even more so because you cannot fence it off in the same way that you could a bungalow and you never know who is roaming around.

Of the two I would say that a bungalow could be made far more secure than a flat.

Fully secure apartment buildings/gated communities don't come cheap.

One thing I would advise is not to "advertise" the fact that the property is lived in by someone who is frail or vulnerable. I always shudder when I see properties with grab or handrails on the outside. Bit of a giveaway.

Maintenance wise a bungalow will easy enough - unless of course you are disabled or particularly elderly. Cleaning out the guttering, windows, slapping a bit of emulsion on is far easier in a bungalow than in a two or three storey house. A tradesperson wouldn't need specialist ladders or scaffolding. If push comes to shove it's probably cheaper to pay a handyman to do a few bits and pieces now and again than to pay exhorbitant management fees.

As for gardens, well just choose one that is small enough to be manageable, you can always have it paved or gravelled over with just a few pots or a raised border for a few pretty shrubs and flowers.

One thing I would strongly advise is to try and forward plan.

Try to pick a property with easy wheelchair access. Avoid steep slopes and flights of steps, and take a good look at corridors etc. Are they wide enough for a wheelchair or a zimmer frame should the need arise.

Having cared for my disabled husband and learning the hardway just how difficult it can be with wheelchairs and zimmer frames etc I now have quite a check list for my next property.

Good luck with your move.

missile

baxtor wrote: »

I agree entirely with missile; that savings should be used to improve quality of life. The place where you live is key to improving that quality of life.

My mother qualified for a very nice flat provided by the British Legion, as she was in the wrens.

I think it is disgraceful that better accomodation is provided for prisoners than law abiding people in their golden years.

I hope you find somewhere suitable to meet your requirements.

Errata

It doesn't look like anyone can come up with the info the OP needs. The only info I can find is from the Shelter website -

Housing benefit can cover:

• rent
• some service charges, such as paying towards the upkeep of communal areas, or for a caretaker.

and on the Turn2Us website housing benefit "It can also cover other housing costs including ground rent and service charges in some circumstances