The popularity of retirement villages is on the rise in the UK, with 70,000 people currently residing in such developments in Britain, according to recent reports.
Leanna Byrne, a property law solicitor at Hughes Solicitors in Heathfield, outlines the pros and cons of buying a property in a retirement village and explains all the elements you should consider before taking the plunge.
Retirement villages are specialist communities which typically offer independent housing to buy with a range of facilities on-site for retirees, as well as care and support for those that need it.
They usually have a range of different accommodation kinds to choose from, including houses, bungalows and flats, and are often set in appealing rural settings.
A range of leisure facilities – such as swimming pools, bars and restaurants, and classes and entertainment – are usually available, as they are designed to offer a strong sense of community which helps ward off the loneliness experienced by many elderly people.
Apart from offering a safe, luxurious and sociable environment with an array of facilities situated very close by, another upside of a retirement village is that maintenance is handled by the retirement village management company. Since they are responsible for keeping the site in good condition, you do not have to worry about things like gardening or cleaning outside in the communal areas.
However, there are a few downsides to consider before buying a retirement village property in regard to cost and resalability. Retirement village homes tend to be more expensive than normal property and, given that they are only attractive to retirees, they may be harder to sell because your potential buyer market will be much restricted.
Other considerations include the fact that service charges and maintenance fees and can be quite steep, depending on the services and facilities available. If the management company of the retirement village is run by the freeholder or their agent, and not run by the residents, these charges can increase alarmingly as time goes by. You may also have to pay other expenses such as council tax and utility bills as these will not be included in the service charges.
The terms and conditions that apply when buying such properties often include ‘event clauses’ which mean you have to pay a fee if a specified event takes place, such as the sale, transfer or sub-letting of the property. Such fees are frequently based on a percentage of the sale price or market value of the property, and in some cases, this percentage will rise for every year you have lived in the property, meaning a substantial bill can become payable.
These terms and conditions will often place restrictions on the sale of property: potential purchasers may require vetting by the freeholder, for instance, or only a specific estate agent may be used, with additional fees involved for using them.
How a solicitor can help
As we have seen, there are certainly many benefits to buying a retirement village property, but it is a good idea to take legal advice before you embark on such a journey.
Our specialist property solicitors can talk you through your retirement plans and help you assess whether a retirement village is right for you. They will check all the small print to make sure there will be no nasty surprises further down the line. If you decide to go ahead, they can see you through the conveyancing process and be at hand with legal help and advice until you are settled into your new home.
For more information, please contact our property team on 01435 890 101 or email Leanna Byrne at leannabyrne@hugheslaw.co.uk.
This article is for general information purposes only and does not constitute legal or professional advice. Please note that the law may have changed since the date this article was published.