PC ground rent and service charge.

peb

If it's a retirement flat service charge is usually comparatively low with the main payment due on a sale,  I'd just mention it's unlikely a relative can just move in.  

born_again

catlover57 said:

Hello just asking for a friend.
She is thinking of buying a retirement flat to live in.
Will she be allowed to claim pension credit after buying the flat (inherited £70000)? as she will only have about £3000 capital left.
Also if she can, will they help with ground rent and service charge?
Just to mention she lives with her sister at the moment and won't be pension age until Jan 2024.

While off tack of question.
Is this one in one of these retirement complexes that are springing up everywhere. If so. Be careful, as they may find it very hard to sell later at even a below purchase price. Or a burden on estate..

https://forums.moneysavingexpert.com/discussion/6340510/selling-a-retirement-apartment

https://www.theguardian.com/money/2021/mar/28/i-cant-sell-mums-retirement-flat-and-the-charges-are-mounting-up

Muttleythefrog

catlover57 said:

Yes it's leasehold(long) and she knows about the horror stories of selling on after she passes away, but her family know about this and said a member would either move in or rent it out.

I would check the lease regarding restrictions on who can live there (age) and what type of renting out if any can be done. Bit wary of retirement properties as it obviously can restrict market on re-sale.

Otherwise agree with advice... hopefully services charges reasonable and can get help to pay... not sure how much help they might get with ground rent but that may be low (cannot get help for that on UC) not sure about PC.

HillStreetBlues

Muttleythefrog said:

catlover57 said:

Yes it's leasehold(long) and she knows about the horror stories of selling on after she passes away, but her family know about this and said a member would either move in or rent it out.

I would check the lease regarding restrictions on who can live there (age) and what type of renting out if any can be done. Bit wary of retirement properties as it obviously can restrict market on re-sale.

Otherwise agree with advice... hopefully services charges reasonable and can get help to pay... not sure how much help they might get with ground rent but that may be low (cannot get help for that on UC) not sure about PC.

You can get help with GR on PC

catlover57

Hi It's an over 55 retirement communal flat, and renting it out is allowed.
As I said her family are aware of the selling pitfall, and would either rent or be passed on to a family member(55 and over) to live.
Peb what do you mean  it's unlikely a relative can just move in? 

HillStreetBlues

Peb's comment would just have been a general view without knowing the facts of the situation.
As it looks like it's been thought though and ideas are in place, I wouldn't worry about the post.

peb

I've not read a retirement lease that allows someone to just move in, but you are aware of the over 55 rule and if this lease permits subletting that's good.

Some leases are worse than others -bAnchor used to be a nightmare.   a lot require doctor certificate of ability of independent living  but so long as you know the pitfalls (and you seem to) then I wish you well.

peteuk

The old adage Buyer Beware springs to mind.

Go through the lease more than once to ensure whatever your plan is fits, nothing worst than finding out the hard way.   

We looked at something similar for my father but decided against it.  When we looked at the pictures they all seemed to be taken with the lights on, so when we visited it was apparent there was not really much natural light.  We soon deduced that he would need a new white goods for the kitchen.   

The lease was stacked against him, with what appeared to be lots of restrictions which were difficult to keep up with, many sown into different parts of the lease.  In the end we decided against it. 

Can I ask, how long they have been living with her sister and where does the inheritance come from. Not sure if that has a bearing on it or not. 

catlover57

Hello peteuk I don't know how long she's been living with her sister, but I know the inheritance was from her late mother. She will go through with her family about all the restrictions, but I think she's more concerned about the help with ground rent and service charge being paid by PC. Also she needs to find out in detail what the service charge covers,  like if the roof leaks (does it cover that) At the end of the day she'll weigh the pro and cons and take it from there.

HillStreetBlues

Roof leaks can be claimed, as can other repairs for communal use.
So for example if there is a door to enter the block of flats any repair on that door can be claimed,   but a repair to the door entering into her own flat can't be.