Families are facing challenges in selling inherited retirement properties from elderly relatives, struggling to find buyers despite lowering prices. One individual reduced the asking price of his late mother’s retirement flat by £55,000 but remains unsuccessful in selling it, incurring significant annual fees for the vacant property.
The flat in Burgess Hill, West Sussex, purchased for £225,000 in 2015 by Joan Taylor, came with a 125-year lease and is restricted to individuals over 70 years old for purchase, limiting potential buyers. Following Joan’s passing at 96 in June 2024, her son Gordon Taylor has dropped the price to £170,000 with no success in finding a buyer.
Concurrently, he is burdened with covering the annual service charge of £9,700, ground rent of £435, and council tax of £1,044. Gordon expressed disappointment, stating that what his mother thought would be a legacy has turned into a financial burden.
In a similar situation, another individual disclosed that despite reducing the price of their late mother’s flat by £200,000, they have not received any offers. An expert suggested there could be approximately 10,000 unoccupied properties in privately owned retirement blocks across England and Wales.
Contrary to this, the Retirement Housing Group (RHG) reported that 95% of retirement properties are currently occupied. Furthermore, in recent property news, the average house price in the UK has exceeded £300,000 for the first time, reflecting a 0.7% monthly increase and a 1.0% annual rise according to Halifax.
Amanda Bryden, head of mortgages at Halifax, highlighted the market’s stability with prices surpassing £300,000 for the first time, acknowledging the challenge of affordability for potential buyers. Karen Noye, a mortgage expert at Quilter, echoed concerns about affordability, particularly for first-time buyers, as property values continue to rise.
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