Debra Morley, Chartered Legal Executive

Are you considering moving into a retirement property? Perhaps you are adapting to a change in circumstances such as the loss of a partner, deterioration in health or mobility, or maybe just looking to downsize and plan ahead.

A retirement property can provide a practical and supportive alternative to living independently at home, while avoiding full-time residential care.

What type of property is it likely to be?
While not all retirement properties are leasehold, most tend to be. These are usually apartments within a larger block, often with shared communal areas and facilities. Leasehold properties are leased from the landlord for an agreed length of time (‘term’) subject to an annual fee (‘ground rent’) plus regular payments towards services and maintenance of the building provided by the Landlord or the company/agent they appoint to do so on their behalf (‘service charge’).

Why choose a retirement property?
Retirement properties can be a favourable option for those who do not want residential care but find living at home challenging. Benefits include:

• Balancing independence with safety
• Physical and emotional support
• Opportunities to socialise and engage with a wider community
• Practical resources such as in-house dining, hairdressing, chiropody, laundry, healthcare, and 24-hour on-call wardens
• Many utilities (gas, electric, water, telephone, buildings insurance) included in service charges, reducing the burden of managing and maintaining your own home.

Important considerations

• Fees may be payable to the landlord and/or management company when buying a retirement property, such as Notice of Transfer, Deeds of Covenant, or Certificates of Compliance.
• Regular ground rent and service charges are payable whether or not you live there. These may increase over time, so you should review lease terms with your solicitor carefully.
• When selling the property, administrative fees may be payable to the landlord or management company for a ‘management pack’.  This is required by solicitors as part of the legal process. Exit fees, sometimes 1–2% of the sale price, may also apply.
• Leases range from 99 to 999 years. Properties with less than 85 years remaining may require a costly lease extension.
• Leases include covenants that restrict what you can do, who you can sell to, and may require buyers to meet minimum age or health criteria. It is important to also consider what might happen if your health suddenly deteriorates during ownership.

In summary
A retirement property can be an excellent choice for some, offering support, security, and convenience. However, it is important to understand the financial obligations, legal restrictions, and responsibilities involved. Speaking with a solicitor can provide clarity and ensure you make an informed decision before proceeding.

At Chubb Bulleid Solicitors, we have an experienced team of Residential Property Lawyers, across offices in Wells, Street, Somerton and Taunton, who are at the end of the phone should you have any initial queries, or wish to obtain an estimate of fees for acting for you in relation to any sale or property purchase.  Do get in touch with one of our professional and approachable team – no question is a silly one and we will do what we can to answer any questions you may have.