Retirement Homes

RSZara

Hello,

I couldn't find a thread on retirement homes so started a new one....

I am looking into retirement home purchase and the associated fees eg if the home is sold.

My questions are;

1. Have you recently purchased a retirement home and know about event fees/exit fees eg 10% needs to be paid when the property is re-sold? at what stage of the purchase were you made aware of these?
2. What has your experience been of buying a retirement home?
3. Were you given fee information in a clear format?
3. Do you use the website Elderly Accommodation Councel (EAC) to find advice and information?

Thank you

Fermion

Haven't purchased but I have recently sold my late Mother's retirement apartment which she had lived in for 29 years.
1. She/we were aware of the exit fees on selling the property - they were originally 1/4 of 1% per annum of the purchase price on sale - but these were changed 5 years into ownership for new tentants to 1/2% of 1% per annum. So a bit less for my Mother's apartment.
2. Her/our experience of buying an "Independent Living" retirement apartment has been "caveat emptor" - the lease terms are very restrictive and the Service Charges seemed to go up significantly every year. However the main issue is trying to sell the Retirement Properties once they are more than 5+ years old - most retired people only seem to want "shiny new" properties so the market for second hand retirement apartment is very limited and niche. It actually took us 9 months to sell the property at a knock down price, and of course the Executor has to pay full council tax on the property 6 months after probate.
3. Exit fee info was clear - but check if this is based on the original purchase price or the final sale price.
4 we didn't use the EAC to find information - didn't exist in those days

RSZara

Thank you Fermion, very helpful

bob_a_builder

Just in process of buying one for mum...
it is a shiny new one I'm afraid ! - well 1 year old , was show flat

1. buying now, hope to complete in a week or two
on resale they reserve the right to resell themselves for 8 weeks, if they do you pay them 1% +vat
Service charges continue till its sold
we asked about this fairly early on, not in brochure

2. pretty good, but its no chain + cash purchase so should be straight forward

3. service charges were clear

4. Have used homecare.org which is part of EAC

Browntoa

Moved from pensions forum to here as better suited

bouicca21

Several friends have either bought or had relatives who bought retirement properties.



Two are delighted and as they had to wait for flats to become vacant believe that resale will not be a problem. The developments in question are nicely situated for shops and public transport.


In other cases when flats have had to be resold the cost has been a problem. Resale was not easy - one took a year to sell. Service charges continue whether the flats are occupied or not; there were fees for letting as well as fees when the flats were ultimately sold.


And finances aside, the social life offered can be great or, if the neighbours are difficult, awful. The description of one sounds like warring tribes with the residents split into hostile groups.