Selling an inherited retirement home can be tricky. With a limited pool of buyers who must be over the age of 50, have cash in the bank, and be willing to purchase your retirement property.
Even though there is a limited market, you will need to be mindful of monthly service charges, which can easily run into tens of thousands of pounds.
Whether you have just applied for a Grant of Probate or are looking to sell an inherited retirement home, this article will go into more detail about what you can do.
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Prepare the property
Statistics from the Office of National Statistics reveal that life expectancy increased in 2019 after a period of stagnation. Women can expect to live up to 24 years after retirement, while men have 20.
Making sure that a retirement property is ready to be sold is essential. The way it is marketed may not be the same as a regular property, but preparation is equally important. Here are some tips to ensure a successful sale:
- Don’t underestimate the importance of good kerb appeal and a well-maintained front door. HomeOwners Alliance found that 68% of homeowners said that the kerb appeal was a major factor when choosing a home, and 51% said that a nice front door was a must.
- When selling a property intended for retirement, comfort should be the priority. Make sure all areas of the house are neat and tidy, and consider hiring professionals to clean the curtains, carpets, and any furnishings that may be harbouring dust or other particles.
- Lighting is also an important factor to consider when selling a house. Many sellers overlook the importance of good lighting, assuming buyers will replace it, but having bright and comfortable lighting can make the house seem larger and bring out the features of the house.
- One of the main distinctions between a regular residence and a retirement flat is the concept of spaces. Retirement properties tend to have more communal rooms and areas such as lounges, which are essential for homeowners to be able to socialise.
- When it comes to boosting the value of a retirement property, there are certain features that can help.
For instance, having a panic button in place can make potential homeowners feel more secure. The value of retirement properties goes beyond just the house itself. Retirement properties come with the community.
Highlight the advantages and let buyers know that they can enjoy them if they purchase the property. Show them that the property can provide them with a better lifestyle and social life. Focus on the positives and make sure buyers know that they can make the most of them.
Some considerations and challenges
Despite having a perfect and a well presented retirement property, there is no denying that it is rarely a lucrative investment.
Property expert Ross Clark says that the demand for dedicated retirement housing is sluggish despite the ageing population and national property shortage.
This is a tough obstacle to overcome when selling in such a difficult market. Here are some considerations to keep in mind.
- Be aware of any hidden costs or expenses. Ensure that the retirement property you’re selling is free of exit fees, service charges and maintenance bills.
- Think carefully about the valuation of your property. Retirement properties are prone to drastic depreciation, and the longer your property is on the market, the cheaper it becomes. Consider using sites that offer market appraisals to ensure that you don’t lose out when selling.
- Finally, remember that the sales process for retirement properties can be complicated. It can be beneficial to consult a professional who specialises in retirement properties.
They are better equipped to handle the progress of the sale, especially in a difficult market. Collaboration is key when dealing with an agency or even a single agent, and good returns can be achieved with the right planning and strategy.
A retirement flat is a leasehold property in an age-restricted development, such as a retirement village in the UK.
Most of these flats are sold on a leasehold basis, which means that the tenant is granted a long-term tenancy – typically 99 or 125 years, although some newer flats have a lease of up to 999 years.
Along with the purchase price, buyers will often have to pay ground rent, which can be anything from £50 to £300 or more.
Retirement flats are particularly attractive to people aged 55 and over, and landlords usually only sell to people in this age group. There are many advantages to buying one, which are outlined below.
Pros of buying a retirement flat
Retirement flats offer a range of benefits that need to be emphasised when you are trying to sell them. Some of the key advantages of purchasing a retirement flat include:
- Safety and security.
Having a community of people around you gives you the opportunity to form meaningful relationships and enjoy companionship.
At the same time, you can still enjoy independence by living in your own space. In addition, retirement flats provide additional layers of safety and security, so you can rest assured that you are safe and secure.
Cons of buying a retirement flat
Purchasing a retirement flat can have its advantages, but there are also a few drawbacks to be aware of.
- Service charges,
- Difficulty in selling and
- Exit fees.
In the UK, retirement flats tend to be more expensive than their open-market counterparts due to the service charges associated with them. These charges typically cover the maintenance of the complex and the facilities available there.
The market for retirement flats is much smaller than those on the open market, meaning selling your retirement flat can take much longer.
Exit fees may be charged when the flat is sold. These fees are used to cover the upkeep of the retirement village and any future repair costs. Make sure to read the terms of your lease carefully to be clear on the details of these fees.
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We provide the perfect solution to sell your inherited retirement home quickly.
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- The price we’ll offer is the price that you will receive with no hidden deductions.
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- These valuations or surveys result in delays and price reductions later on.
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