Retirement Properties – Law Commission Blasts Unfair Charges

The very high charges which can be incurred by the buyers of retirement properties have come in for criticism by the Law Commission in a recent report. After a two-year investigation, the Commission concluded that 'event fees' or 'transfer fees' charged by some landlords are excessive and unfair.  Most retirement properties are sold as long leaseholds and are often attractively priced. There are currently more than 160,000 such properties in the UK.

The Commission found that owners of retirement properties are often not made aware of the charges, which can amount to 30 per cent of the price of the property. The fees, details of which are often buried deep in the fine print of the purchase agreement, can be triggered by the sale or subletting of the property – for example, when the owner moves into a care home and a tenant is found for the property.

The Commission recommends greater regulation of the sector, clarity about the scale of and 'trigger events' for charges and suggests that there should be a cap on the amount that can be charged.

Until the Government acts to give effect to the proposals, your best protection is to obtain professional advice before agreeing to sign any contract for the purchase or lease of a property.

We can explain what is hidden in the small print and its potential impact on you.

Posted by Peter Nicholas on Monday, September 04, 2017 at 04:41 PM