Families are facing challenges in selling inherited retirement properties, leading to financial burdens. For instance, one individual reduced the price of his late mother’s retirement flat by £55,000 but has been unsuccessful in selling it, incurring substantial ongoing expenses.
Joan Taylor purchased a flat in Burgess Hill, West Sussex, for £225,000 in 2015, with a 125-year lease in a block exclusively for individuals aged 70 and above, 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 annual costs including a service charge of £9,700, ground rent of £435, and council tax of £1,044. Expressing his frustration, he mentioned that what was meant to be an inheritance has turned into a financial burden.
Similarly, another individual shared a similar experience, reducing the asking price of their mother’s flat by £200,000 without receiving any offers. An expert estimated that there could be approximately 10,000 unoccupied properties in privately owned retirement blocks in England and Wales.
Contrary to this, the Retirement Housing Group (RHG) indicated 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 monthly increase of 0.7% and an annual rise of 1.0% according to Halifax.
Amanda Bryden, head of mortgages at Halifax, noted the stable growth in the housing market, with prices surpassing £300,000 and annual growth reaching 1.0%. However, she acknowledged the affordability challenges faced by potential buyers amid the rising prices.
Karen Noye, a mortgage expert at wealth manager Quilter, expressed concerns that crossing the £300,000 threshold could further strain affordability for first-time buyers.