Downsizing into a purpose-built retirement apartment or flat is something that many older homeowners ponder. Here are some things to consider if you, or a friend or relative, are looking into buying in a retirement development.
What do retirement apartments offer?
Retirement apartments, which are part of a purpose-built retirement development, are found in many towns and cities now. They’re built specially to cater for older people – typically 55+ or 60+ and are sometimes known as senior living properties.
A big attraction of retirement apartments is that they offer a strong sense of community. As they’re occupied by people of a similar age with similar interests, they can be good for making new friends.
These properties often have extensive in-house amenities, such as residents’ lounges, dining rooms, health and wellbeing facilities, cinema rooms and landscaped gardens.
Residents don’t have to worry about maintenance of the overall building or grounds. All this is taken care of and included in the service charge.
There’s often a house manager and/or warden service to take care of security and help with problems or emergencies.
Developers selling new retirement apartments sometimes offer part exchange, which can make moving easier. (It’s important to check that their offer is fair.)
Things to consider before buying a retirement apartment
There will be service charges to pay, usually on a monthly basis. There could also be other charges, such as annual ground rent or exit charges, if the property is sold on. These extra charges are likely to rise year on year.
Retirement apartments can be tricky to sell in future. Their value might not rise in line with non-retirement properties. (This is because the resale market is smaller, as they can only be occupied by older people.)
Future saleability is important to bear in mind for those who might want to move again in the future, or want to leave their property to their family.
Before buying a retirement apartment, it’s essential to weigh up all the pros and cons. Consider whether downsizing into a smaller home that is not part of a retirement development might be an option.
If you are thinking of downsizing and would like an independent market valuation of your current home to help guide your decision, then please contact us.
If you have a relative or friend who is thinking of buying a retirement apartment, please show them this article. They’ll thank you for it.
