Inheriting a retirement flat from a loved one can become a financial burden for families in England and Wales. Many find themselves unable to sell these properties, leading to mounting service charges and other fees.

The Financial Strain of Inherited Retirement Flats

Numerous families report paying thousands annually for empty retirement flats that they inherited. These properties, meant for older buyers, often linger on the market despite significant price drops. One family's attempts to sell their late mother's flat have seen the price slashed by £200,000, yet they have received no offers, leaving them with ongoing service charge debts.

A National Issue: Empty Retirement Homes

Experts estimate there could be around 10,000 long-term vacant retirement properties across the country. These homes, restricted by age requirements, are difficult to shift. For instance, Gordon Taylor's mother bought a flat in Burgess Hill for £225,000 in 2015. Sadly, after her passing, it remains unsold with a reduced price of £170,000, incurring annual service fees exceeding £11,000.

Understanding the Sales Challenges

The specific terms of the leases mean buyers must be over a certain age, limiting the pool of potential purchasers. Taylor suggests that the high fixed fees have deterred interest, resulting in many similar flats remaining on the market.

Industry Response and Criticism

McCarthy Stone, the company behind many such developments, argues most residents are satisfied and that they offer options like service charge deferral to ease the burden. However, critics point to restrictive leases and high charges as significant hurdles preventing sales.

Potential Solutions and Broader Context

Campaigners argue for revisiting lease terms and suggest reducing service charges until sales are completed. This problem is compounded by an oversupply of retirement properties and a changing perception of communal living post-COVID.

While the Retirement Housing Group insists that most properties are occupied, the reality for many families is an ongoing struggle to sell these inherited homes, facing costs they never anticipated.

The call for change is growing, with families like Taylor's refusing to give up, seeking solutions to an issue that affects thousands.

Source:bbc uk