Retirement property won't sell

[Queenofscones]

I have a friend whose father bought a 1-bed flat in a nice retirement village in a rural area in 2004. There's a restaurant on site and quite a lively social scene. The father paid £95k for it in 2004 and was happy there. He had to go into nursing care two years ago and died not long afterwards. My friend and her family have been trying to sell the property ever since. It was originally marketed at about the same price her father had paid for it but didn't sell. The family paid to have the kitchen and bathroom updated and decorated the place and replaced the living room carpet. Still no sale. They've take if off the market for a while and relisted at a lower price on several occasions and it's now down to £45k and there has been no interest. In the last couple of years the service charge has been £4.5-5k pa and the beneficiaries have had to pay that. Now the council are trying to hit them with council tax too.

The lease doesn't allow them to let it. The management company just shrugs. It's a nice little flat and when it was bought looked out over the gardens and onto open fields, but since it was purchased the owners of the place have built a new complex in front and it's lost the view and is now badly overlooked.

Has anyone else experienced anything like this? What did you do?

I've investigated these kind of properties for a relative in one location

Brand new 300k
Second hand 130k
Look at the price difference !
Minimum 6k service charges per year + the usual utility bills
Lots of rules & regulations, although there were a couple of rooms in the block that guests could stay. I assume that these rooms had to be pre booked before arrival.
Minimum age, no pets
Lots of stories in the press, where relatives were stuck paying service charges, unable to rent out or sell.

I am sorry that you are in this situation

It's a real shame because the concept is a good one and (I think) addresses real challenges with getting older, remaining independent, keeping a social life and feeling safe etc.

But the costs and charges need addressing so it feels less like a scam and the companies behind them need regulating so that they have more responsibility for keeping them as good places to retire in.

Plus, I think people who live in them need greater rights to keep pets, have guests etc.

Even renters have the right to keep pets now (or not be discriminated against on that basis).

My friend lives in one of these. It's a lovely place. But a half hour tram/ bus ride to the city centre. Not great when you are to infirm for that. His is a lovely flat and it's a popular development. So hopefully his executors won't have any issues.

All the rules were in the small print

Same as had to be over X age to live there

They were offering free removal service to get people to move in too as an enticement !

Because when you buy a retirement flat for the over 60s, you don't expect someone next door to invite over a crying baby that keeps you awake all night, or a teenager with a loud music and skateboarding habit.

Some flats have management companies & freeholders attached to them

They can set their own rules like age restrictions, pet restrictions etc

For example if you own a flat & rent it out to someone else. The management company can charge the flat owner a sublet fee.

It is not the same as a freehold

This is also how these companies get round the rules for pets etc

My DG moved into a Macarthy & Stone 23 years ago. You were allowed to bring an existing pet but not replace it. Miraculously her neighbours cat, seemingly quite elderly when the complex was built, is still doing well although his great age seems to have changed his colouring from black with white paws and a white muzzle, to all black. No one minds.
Her service charge is £2300pa which seems reasonable enough.

Sorry you are finding this out

These kind of retirement flats are not anything like other property in terms of maintaining their value. Any there is an oversupply of them as well.

Sorry