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Original poster

Retirement property with a short lease

17 replies

supercalifragilistic123 · 29/07/2022 15:06

My DM has fallen in love with a retirement property but the lease is only 64 years. Is this an issue? She is a cash buyer.

It is a probate sale so apparently the daughter cannot extend the lease herself.

OP posts:
titchy · 29/07/2022 15:07

Well not for her! But you're unlikely to be able to sell it...

Original poster
supercalifragilistic123 · 29/07/2022 15:10

That's what I'm worried about! Especially with the hefty service charge... 😳

OP posts:
kirinm · 29/07/2022 15:21

Your DM can extend the lease herself in two years time (assuming she buys it) but I'd be looking at trying to ascertain what the cost is likely to be and factor that into the price she's willing to pay.

If the lease isn't extended then if the property is left to you, you'll need to extend it or it'll soon end up back the ownership of the freeholder.

bilbodog · 29/07/2022 15:24

Look carefully at retirement properties - they can be very difficult to sell on and we lost a lot of money on the one my MIL bought.

Original poster
supercalifragilistic123 · 29/07/2022 15:39

I've just done a calculator and it's 30k to extend the lease 😲. We've done our research and understand the pros and cons. This isn't a new build (obviously!) So was hoping it wouldn't be so risky. I'm think we're going to have to negotiate a hefty discount to make it worthwhile.

OP posts:
DelphiniumBlue · 29/07/2022 15:43

Your mother will be able to extend the lease once she has lived there for 2 years, at a price.
You can get a valuation now, but of course the price could change. There is a calculation, based on the value to the freeholder and the lessee, which will in turn be based on property values at the time.
If she doesn't extend it, yes it will be harder to sell in due course.
Dos the current price reflect the lease term?

TheHomeEdit · 29/07/2022 15:47

I’m in the same position- only the lease only has 62 years left and by the time she is able to buy it will be less than 60 years so cost even more. I’m working on the theory that it will probably sell at a loss when the time comes but frankly I want her living somewhere safe and suitable and this is the only place she has shown any interest in. It’s not like she will need money to buy another property so I’m just accepting it will sell for less.

BluOcty · 29/07/2022 15:55

The government is supposed to be advancing legislation that removes marriage value (which is what helps push the price up under 80y) but they are dragging their feet massively. It has been years in the making. Check out the leasehold knowledge partnership and other groups, some really helpful ones on Facebook.

Yesthatismychildsigh · 29/07/2022 16:05

bilbodog · 29/07/2022 15:24

Look carefully at retirement properties - they can be very difficult to sell on and we lost a lot of money on the one my MIL bought.

I agree. I saw a horror story once on here, often wondered how it ended up. Please google the hell out of the company.

titchy · 29/07/2022 16:10

In all honesty even with an extended lease you may well end up declaring her estate bankrupt given the service charges that will accrue before you sell. But that may not be important to either of you. If it is, then could she rent in a similar type place?

titchy · 29/07/2022 16:10

Is it McCarty and Stone? They're a nightmare....

Clymene · 29/07/2022 16:11

Don't buy a retirement property. Cheaper to get a flat and a carer

Original poster
supercalifragilistic123 · 29/07/2022 18:02

The company is Broadleaf. The service charge is around £300pm which is affordable for her as she has a generous pension.

Not so affordable for me though!

I really want her to be happy and settled as she's on her own now. I think it's probably the right place for her I just don't want it to end up being an expensive mistake. I worry that a flat on her own she'll become isolated and lonely. She doesn't need carers yet but may do at some point.

OP posts:
MinnieMountain · 29/07/2022 20:30

Are there other retirement complexes nearby that she could look at? It seems a shame to faff about with a lease extension.

Retirement flats have ridiculous fees added when you sell (and when you buy- I’m a conveyancing solicitor) but DH’s DGM went into it with her eyes open as to the cost and it really suited her. She liked that she had her own front door but there was also an area for socialising. Having a warden on call was particularly useful when she had a fall.

Kittyshopping · 29/07/2022 20:35

Buyer beware. My mother was happy in her retirement flat but it took me almost three years to sell when she died and we still had to pay the expensive factoring fees even while empty. I noticed Mc Stone are entering the rental market. A much better arrangement IMO.

Clymene · 29/07/2022 22:22

And why do you think she won't become isolated and lonely in a retirement flat?

Honestly, she would be better off going into a home or proper sheltered housing. Retirement housing is a total rip off

starpatch · 30/07/2022 07:48

Clymene you are right but proper sheltered housing is often only for those in housing need, ie some one with a home to sell wouldn't qualify. Extra care housing run by housing associations sometimes have units to buy.

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