Buying a Retirement flat with confidence

In many ways, buying a retirement flat isn’t too different to buying any leasehold flat. You will be responsible for the payment of ground rent and service charges, for example.  However there are some key distinctions which you should be aware of.

In this article, we guide you through some of the frequently asked questions regarding a retirement flat purchase.

Is there are age requirement for buying a retirement flat?

Yes, and the age restriction will be set out in the property’s Lease. Where there are two occupiers, the Lease usually provides that one person has to meet the primary age limit and the second occupier can meet a slightly lower age limit. For example, the age limit may be 60 for the first occupier but 55 for the second occupier.  

Do I need permission from anyone before I buy the property?

The Lease will typically require the Landlord to provide written consent for you to buy the property. This may involve a meeting with the House Manager so they can assess your suitability for the property, and, in some cases, you may be required to provide a letter from your GP which confirms mental capacity or any issues with mobility which may affect your ability to live independently.

Your solicitor will send a copy of your identification documentation (e.g. passport, driving licence, birth certificate) to the Landlord to evidence that you meet the age requirement as part of the conveyancing process.

Are there any fees or service charges to pay?

Yes, you will pay a service charge. This is an annual contribution towards the communal areas of the building and gardens. This may be collected in monthly or half yearly instalments. You may find that the service charges are higher for retirement flats than standard leasehold flats and this is depending on the services provided - such as communal living areas, house manager accommodation and guest suites.

The Lease may also require you to pay an annual ground rent. Details of the ground rent (and how frequently the rent is reviewed) will be contained in the property’s Lease.

Finally, a lot of retirement flats require you to pay exit fees – these are called contingency and transfer fees and are usually around 1% of sale price or market value. These are paid by the Seller when the property is sold to the new Buyer - but do bear in mind that you will have to pay these when you come to sell the property in the future.

Exit fees will usually go towards building a contingency fund (or ‘sinking fund’) for the development for funding any works which are required.  

What is a House Manager?

A house manager is someone employed to be the main point of contact for any questions or concerns the residents have. They are also responsible for overseeing any onsite facilities, managing any communal areas and arranging social events.  

There are a number of rules and regulations which you need to be aware of when buying a retirement flat. It is important that you receive the correct advice from a firm who are familiar with retirement property Leases and can guide you through the process with confidence.

If you are buying a retirement flat, please get in touch with our helpful and experienced Property Specialists at mosshaselhurst on 01606 74301 and we will be happy to provide a quote.