Families are facing challenges in selling inherited retirement properties, leading to financial burdens. One individual reduced the price of his late mother’s retirement flat by £55,000 but has not been successful in selling it, resulting in significant ongoing expenses.
The flat, purchased by Joan Taylor for £225,000 in 2015 in Burgess Hill, West Sussex, comes with a 125-year lease and is restricted to individuals over the age of 70 for purchase, further limiting potential buyers. Following Joan’s passing at 96 in June 2024, her son, Gordon Taylor, lowered the asking price to £170,000 but continues to struggle with the sale.
Gordon is now responsible for covering the annual service charge of £9,700, ground rent of £435, and council tax of £1,044 while dealing with the property. Expressing his frustration, he mentioned, “She probably thought she was leaving something to her offspring, only to find that it’s become a millstone.”
Another person shared a similar experience, having reduced the asking price of their late mother’s flat by £200,000 without receiving any offers. According to an expert, there may be approximately 10,000 long-term vacant properties in privately owned retirement complexes across England and Wales.
Despite this, the Retirement Housing Group (RHG) reported that 95% of retirement properties are currently occupied. In other property news, the average house price in the UK has surpassed £300,000 for the first time, with a 0.7% monthly increase, as reported by Halifax.
Amanda Bryden, head of mortgages at Halifax, highlighted the market’s stability, with a 1.0% annual growth pushing the average home price above £300,000. However, she acknowledged that affordability remains a significant challenge for many potential buyers.
Karen Noye, a mortgage expert at wealth manager Quilter, expressed concerns about the impact on first-time buyers, stating that crossing the £300,000 threshold poses additional affordability challenges.