Struggles Selling Inherited Retirement Properties Revealed by Families
The challenges of selling retirement properties inherited from elderly relatives have been brought to light by families. One individual, for instance, has reduced the price of his late mother’s retirement flat by £55,000 but still faces difficulties in finding a buyer. Consequently, he is burdened with ongoing expenses for the property’s maintenance.
The flat, purchased by Joan Taylor for £225,000 in 2015 in Burgess Hill, West Sussex, comes with a 125-year lease and is exclusively for individuals aged 70 and above, limiting potential buyers. Following Joan’s passing at 96 in June 2024, her son Gordon Taylor has dropped the asking price to £170,000 but continues to encounter obstacles in selling the property.
Facing an annual service charge of £9,700, ground rent of £435, and council tax of £1,044, Gordon expressed his frustration, stating that what his mother intended as a legacy has turned into a financial burden. Similarly, another individual shared the struggle of reducing the asking price of their late mother’s flat by £200,000 without attracting any offers.
According to experts, there could be around 10,000 unoccupied properties in privately owned retirement complexes in England and Wales, although the Retirement Housing Group (RHG) notes that 95% of retirement properties are presently occupied.
In other property news, the average house price in the UK has surpassed £300,000 for the first time, increasing by 0.7% monthly, as reported by Halifax. Additionally, property values rose by 1.0% annually in January, reaching an average price of £300,077.
Amanda Bryden, head of mortgages at Halifax, noted the steady growth of the housing market, emphasizing the challenge of affordability for many potential buyers amidst the milestone of crossing the £300,000 mark. Similarly, Karen Noye, a mortgage expert at wealth manager Quilter, highlighted the increasing difficulty for first-time buyers due to stretched affordability levels.
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