Buying or selling a retirement flat

Retirement flats and bungalows are bought and sold like other homes, sometimes by a family on behalf of a parent. Their leases can carry charges that fall due when the home is sold or let, or when someone new moves in.

Almost always a lease

The Law Commission says retirement homes "are almost always sold on a leasehold rather than freehold basis". A leaseholder owns the home for a fixed period, and the lease says how many years that is.

The government's planning guidance describes one kind of retirement housing, age-restricted housing, as "generally for people aged 55 and over and the active elderly".

Event fees

The Law Commission says "Many of these leases require the owner to pay a fee on certain events", such as a sale, sub-letting or a change of occupancy. It calls these "event fees".

In 2013, the Office of Fair Trading looked into transfer fees, which are one type of event fee. It found that lease terms imposing them were "potentially unfair". The Law Commission later found that event fees can be disclosed too late for the buyer to take them into account.

What the Law Commission recommended

The Law Commission published its final report on 31 March 2017. It recommended a code of practice that would limit when an event fee can be charged, and in some situations how much. Under the code, landlords would give buyers transparent information about event fees early in the purchase.

The Law Commission says the government sent a final response "confirming that the majority of the recommendations will be implemented". In November 2024, the Older People's Housing Taskforce reported that many people who responded to its call for evidence asked for those recommendations to be implemented. It says the code would give buyers "worked examples of the amount they might need to pay in the future".

What the listing should tell a buyer

National Trading Standards says estate agents are already obliged under consumer protection law not to leave material information out of a property listing. Its guidance for agents, published in full on 30 November 2023, sets that information out in three parts.

Part A includes the council tax band or rate, the price and "tenure information (for sales)". Part B covers information for every home, such as the type of property, the rooms and the utilities. Part C covers information a seller needs to give only if the home is affected, "such as flood risk or restrictive covenants".

Before making an offer

A buyer can ask to see the lease, the latest service charge summary and the number of years left on the lease. GOV.UK says that when there are 80 years or less remaining, "the cost of extending it increases significantly".

A solicitor can explain what a particular lease says about event fees. The Leasehold Advisory Service says it gives "free, government funded advice" on problems with a leasehold home.

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