Post by MikeMusic on Feb 27, 2022 17:23:41 GMT
Information on what you can be paying if you buy a retirement flat for anyone thinking about it for themselves or a relative
From what I know the companies who sell and run these set ups are looking to maximise revenue at every opportunity.
The old punters or family have no choice and have to cough up
Look very carefully at any piece of paper you have to sign
"Reasonable charge" means they can charge more or less what they want
Purchase cost
Look out. Buying brand new may seem a good move
Purchase price is 10-20% higher than 2nd hand.
Ongoing costs
Ground rent. Ball park £250 per quarter
Service charge. £2000 per quarter. Do not expect much for that. We certainly didn't see it in the example we know.
The manager of the set up we know was often away, no cover for the oldies and if you wanted something you almost certainly do it and pay for it yourself.
Classic in this 2nd floor flat. There is a lift but you are not allowed to move furniture and other in it. Only people.
So up and down the stairs
You pay for electricity and gas, if available yourself.
There may be other charges I have forgotten
The real salt in the wounds comes when you sell.
We bought in 2nd hand 2003, just sold and lost just over 10%. Yes, on property.
It gets worse selling. On top of that
Management pack fee £320
Management Contingency Fee £1,130
Another management pack £150.00
Another management Transfer fee £1,130
Two different management companies both charging what they want
Plus estate agent and solicitor fees of course
Tread carefully if you are looking at doing this.
Better still buy a conventional place
From what I know the companies who sell and run these set ups are looking to maximise revenue at every opportunity.
The old punters or family have no choice and have to cough up
Look very carefully at any piece of paper you have to sign
"Reasonable charge" means they can charge more or less what they want
Purchase cost
Look out. Buying brand new may seem a good move
Purchase price is 10-20% higher than 2nd hand.
Ongoing costs
Ground rent. Ball park £250 per quarter
Service charge. £2000 per quarter. Do not expect much for that. We certainly didn't see it in the example we know.
The manager of the set up we know was often away, no cover for the oldies and if you wanted something you almost certainly do it and pay for it yourself.
Classic in this 2nd floor flat. There is a lift but you are not allowed to move furniture and other in it. Only people.
So up and down the stairs
You pay for electricity and gas, if available yourself.
There may be other charges I have forgotten
The real salt in the wounds comes when you sell.
We bought in 2nd hand 2003, just sold and lost just over 10%. Yes, on property.
It gets worse selling. On top of that
Management pack fee £320
Management Contingency Fee £1,130
Another management pack £150.00
Another management Transfer fee £1,130
Two different management companies both charging what they want
Plus estate agent and solicitor fees of course
Tread carefully if you are looking at doing this.
Better still buy a conventional place
