Retirement Developments
What to look for when buying a new home:
House builder’s optional extras
Buying a new home in a recession
What you should know about timber frame
Retirement Developments and Retirement Living
Benefits of retirement living
There are benefits for those looking to move into a new home on a retirement development.
As we get older the greater the need for the added security of living in a purpose-built
new home aimed and designed specifically for retired people. The main advantages
of retirement living are:
Some developments are walking distance to shops or near town centres.
The size of the property is generally smaller and easier to manage and keep clean.
Maintenance and management of the property are taken care of but see below!
Most retirement apartment schemes have a resident warden or a 24-
The schemes have added security and safety features.
There is a sense of companionship and community with like-
You are able to retain an independent lifestyle whilst having access to community facilities.
Staysure Retirement Homes Portal
High annual management fees and charges
Those buying a new home on a retirement development need to be especially careful. Whilst this type of development can have advantages such as security, companionship and special facilities, they come with one big disadvantage – ultra high management fees. These can be as high as £3,000 a year in a Retirement Villages scheme and make a big dent in a pensioner’s income and savings.
There are currently cases in the news where the elderly owners are being exploited by managing agents and leaseholders, charging residents for everything they can think of including ground rents that are twice the normal rate and rental fees for warden’s accommodation.
One company is the giant Peveral Property Group, which has come under particular criticism for the amount of fees charged to residents in the properties that they manage. Peveral together with Fairhold are part of the Consensus Business Group, a private company and the largest owners and managers of retirement leasehold properties in the UK.
The charges to residents can include fees from subsidiary companies owned by the management company. The Consensus Group also includes:
1. Cirrus Careline, the provider of emergency alarm call services.
2. Kingsborough
Insurance, the Broker that arranges all the buildings cover.
3. BNS Telecoms who provide
the office phone service and the dedicated Careline link.
4. Retirement Homesearch,
an estate agency specialising in selling retirement flats.
Exit fees when it is time to sell
What can you do
All management charges and fees can be disputed at a Leasehold Valuation Tribunal.
However it is also possible to remove the managing agent using a five-
The Campaign Against Residential Leasehold Exploitation (www.carlex.org.uk) has been set up to help those being exploited by exorbitant management charges and onerous conditions to take control. It is believed there are around 12.5 million people over 65 in the UK, many living on a retirement development. The Carlex website is full of stories and information on managing agents, charges and action being taken by leaseholder’s groups.
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The final insult is that nearly all retirement developments charge an exit fee of up to 10% when the property is sold. This, together with the high annual fees required make these unattractive to subsequent purchasers and many are now being sold at give away prices by relatives after the resident has died or moved permanently into a care home.
Finally remember that specialised retirement developments, especially those for the
over 60’s tend to have less parking spaces available and very rarely have garages.
The most well-
For more information on management charges and leasehold properties and advice on buying a flat click on the links.
