Pros and cons of ‘retirement’ properties. Advice please friends.

I recently helped my 95-year old mum move into a flat near me - just a regular one; very attractive and small block. The residents are all lovely and have a WhatsApp group. She loves it and likes the independence it gives her (she flatly refuses carers etc). The service charges aren’t particularly cheap though, as it’s such a nice, well-maintained block that anlso has an lift although nothing like on the scale of a Retirement complex. There are a mixture of owners and tenants, of different ages - everyone knows each other and I have already received offers of help and assistance for my mum - but she finds she can manage quite well and also doesn’t want to be surrounded by a lot of “old” people. The other more elderly lady living there (only 84) is very “with it” - goes out and about and even has a gentleman friend in the next village.
It depends how you are. Even though she is 95, my mum enjoys looking at social media and can email her friends although her favourite is WhatsApp. So…..

I managed one of these retirement developments for 3 years before I retired so I can see both sides of the debate. Here are some immediate thoughts:

I saw new residents move into the development, make good friends almost immediately and really look out for each other as they got older. The social aspects of living in these retirement apartments can be invaluable.

On the other hand, some developments can be quite clique-y and have their fair share of mean girls (and boys) who love to cause trouble.

Towards the end of my time there (I retired 4 years ago) I got a sense that some families were attempting to use them as a cheap form of care home (we definitely didn't offer care but as manager, I made sure that residents were 'accounted for' each day (either by phoning them in person or knowing their habits such as what time they opened their curtains or were likely to walk by my office). During the first lockdown, the son of one resident thought that I would do the shopping for his mum and get her medicine from the pharmacy, even though he only lived 5 minutes away!

The existing residents were often extremely vocal about this 'cheap care home' practice. They hated other people in the town to think of the development as 'an old folks' home'.

The main problem I had when trying to make sure the development ran smoothly was the fact that we were only allowed to use contractors from an approved list. They were often more expensive than local tradespeople and sometimes travelled from one end of the country to the other to do the job. We had a TV aerial contractor who came from the south of England up to the Lake District for a 1 hour job and a roofing contractor who came from the North East. Of course, the cost of the travel time was passed on to the residents.

Hope that helps!

Nit heard anything good about these retirement flats. I would buy a ground floor flat in a nice area and fingers crossed you should be ok. Wishing you well.💐

Personally I would avoid them. It took forever to sell my mum's in Wales and she finally took a massive loss. All the while she was there she did enjoy it but said with hindsight she wouldn't have done it.
There is a development in our town and they always have flats for sale and a retirement village where my son lives which is the same.
I agree with newnanny a ground floor flat near amenities seems the way to go.

I have also heard they can take years to sell because developers are always building new ones so people go for those first. I'd get a normal ground floor flat within walking distance of a GP, shops I would have said bank but they are all closing so cash hole in the wall.

The one thing that would make me consider a retirement flat is the fact that there wouldn't be the possibility (I assume) of suddenly finding that the flat next door/above/below mine was going to be let to several students or used as an Airbnb. At least with a retirement flat you know the occupants have to be over (55 or 60?) although that still doesn't mean they wouldn't hold wild parties I guess!

Selling a retirement flat is a nightmare. One well-known company owning these blocks makes it very difficult, complex and expensive - they charge a percentage of the value of the property, plus for "management packs" for both buyer and seller solicitors (at £365 each) a "contingency fee" (for my sister's 1-bed flat this was £1,800) plus of course the management, ground rent, etc fees. In all it cost nearly £20,000 to sell my sister's flat after she died and we lost £50,000 on the price as well. It wasn't a particularly valuable flat in the first place! Do message me if you want to know which company it was.

I would avoid as don't want to leave my son with a problem. If however, money not a consideration I know people who say its the best thing they have done. I just do not fancy community living as one of my neighbours is a nightmare, everyone avoids her, nosy, buts in when people visit, doesn't let you get a word in and all she talks about is her children and carries her phone to show you her pictures of them, even at a service at the crematorium recently, her long suffering children visit each day on a rota system. They deserve medals. Fancy having her next door.

Jewelle, that’s good news for your mum, some we’ve viewed looked nice but we have a budget and don’t want to add to our children’s difficulties when the time comes.

We are just waiting to exchange contracts for my mum on a retirement flat. Yes, we are aware of the high service charges and everything else, including reselling, but to be honest for us the benefits far outweigh the high costs. That said we, and she, can afford it.

It is a fabulous place she can’t wait to move in and we have spoken to many people whose relatives live there and they absolutely love it.

Again, thank you all so much for your encouraging comments and wise advice. Moving from a big house to a small apartment is a bit of a step into the unknown but we’d like to put down roots somewhere while we are still together so that when eventually there is just one of us ….. Franbern, your mention of using Alexa in an emergency is inspired! I’d never thought of that. We will investigate connecting it to our phones. And ferry123, I’ll update you on where we end up.

BluebellGran best of luck! I think that's a sensible decision.

Willingness to store your furniture and perhaps rent for a few months probably puts you in the best possible position. You then effectively become the end of any chain and as you say, become cash buyers.

And you're absolutely right in not looking for somewhere else now. It's all too common for buyers to set their heart on somewhere before selling and then get disappointed.

Keep us updated!

Bluebellgran, I wouldnt touch them with a barge pole. It took months for my mother’s retirement flat to sell, and in the meantime myself and my brother were responsible for all charges, including a high service charge and ground rent amongst other outgoings.

Thank you all for your advice. Very grateful. I think we will look for a normal apartment, preferably ground floor. The sale of our current house will go live over the weekend but although we are keeping our eyes on what’s available in St Albans we won’t look seriously until we have a buyer. If necessary we’ll put the furniture we want to keep in storage so that we stand a better chance as cash buyers. Wish us luck!

Mil bought a retirement flat when Fil started showing signs of dementia, she bought new in a nice area that was convenient to my Sil. Fil went into a nursing home and Mil felt safe at the retirement flat, had friends there and used to use the dining facility most days. However, a few years down the line, the food in the restaurant had deteriorated, most of her friends had died, flats were becoming difficult to sell as the company was always building new ones. She caught norovirus and it proved impossible to find any care for her as Sil was abroad and we live 3 hours drive away, Mil was in her late 90's, very fit for her age with all her faculties but she decided to come to live with us. It took 3 years to sell her flat and she was paying 6.5K p.a. in service charges although she wasn't living there. The flat eventually sold for £60K less less than she paid for it nearly 20 years before but at least it was sold before she died at 101. I wouldn't touch one with a barge pole.

Service charges can be crippling in retirement complexes. Plus they are only ever leasehold which, personally, I would avoid at all cost.

I agree with previous posters. A decent flat in a privately owned block with good management would be preferable.

Franbern has made a few good points and the service charges are always going to go up and eg if the roof needs to be replaced, you would be asked to pay for a % of that.

I also would buy a "normal" flat and you would have a lot more money in your bank account.

It will cost you more but buy somewhere near shops and public transport because eventually you will have to give up driving.

Some people are put off buying retirement flats because of these charges.
I don’t want to be a doom monger but the facts of life are that there will come a time when that retirement flat will go up for sale.
These service charges will have to be paid while your family is waiting for a buyer. Bearing in mind the drawbacks of these properties this could take a long time.

Retirement flats do have extremely high service charges. Mainly to pay for the Warden/Manager, etc. However, they usually now are only on duty Mon-Fri 9-5, so residents then depend on an external call company and have pull cords on most of their flats.

Retirement properties usually have a lounge area where activities and meetings for residents can be held regularly, along with a small kitchen area attached to this. Usually a laundry room with washing machines and tumble dryers, so that residents do not need tohave their own. Also mostly they have one flat which can be rented out for residents visitors can stay in. Often there can be rules in place as any alterations to the flats, and even the ability only to use contractors listed by the management company. There are often rules in place about selling any flat which means that the Management company takes a percentage from every sale.

Non-retirement properties usually have larger flats, almost definitely larger individual kitchens. Service charges are nearly always 50% or even more cheaper than retirement properties. Far fewer restrictions with regard to work inside individual flats, no involvement money=wise with sales, etc.

These days having Alexa in a flat can give all the reassurance of getting assistance either from a local family member or even by ambulance, etc easily and quickly and at no cost other than the original cost of purchasing one of these machines.

Personally, I am very happy with living in a normal flat. Lots of space, a lovely balcony, a garage. We do have the occasional communal afternoon tea party/coffee morning, in our large entrance foyer for flat owners. Alexa gives me re-assurance should I need help at any time day or night. I prefer my own washing machine etc. rather than a communal launderette type thing. For social activities I have so very many to choose from in my town, all within ten to fifteen minutes from my flat, and actually prefer that to what can be the rather claustrophobic atmosphere of only ever meeting up with people living in the same block. All very well if you get on with everybody, can be disastrous when people fall-out!!!!