Guest Blog by Tracy Ashby, Partner in the wills, probate and lifetime planning team based at FBC Manby Bowdler
Retirement living: protecting your family’s inheritance
Thinking about downsizing or moving to a retirement property? It’s a popular choice that offers many benefits, but there are important considerations that go beyond your immediate needs. It’s crucial to think about both your current requirements and what might happen after you’re gone.
The appeal of retirement living
Retirement communities continue to be popular for good reason. They offer a chance to downsize and join a community of like-minded people in a secure environment. For many, this lifestyle change provides peace of mind and a more manageable property in later years. But before you make the move, it’s worth taking a closer look at what you’re signing up for – particularly when it comes to the financial commitments involved.
What to consider before signing on the dotted line
Most retirement properties come with lease agreements that include ongoing fees. Tracy advises that anyone considering buying one should thoroughly read and understand these terms before proceeding. Pay special attention to:
- Service charges and their potential to increase
- Rules around sub-letting
- Age restrictions that might limit who can buy the property in future
Many retirement properties can only be sold to people over a certain age – often 55 or even 70 – which can significantly narrow your potential market when it comes time to sell.
Thinking beyond your lifetime
Here’s where things get interesting (and potentially costly). Those annual service charges, rents and other expenses don’t stop when you die. Even though the property is empty, the charges continue to mount up throughout the probate period, or as you wait for a buyer, potentially costing your family thousands of pounds. And retirement properties can take longer to sell then family homes, with little or no marketing support from in-house teams. And don’t forget, after 12 months of being empty, local councils double the council tax due on the property – while some leases even entitle landlords to an additional commission payment when the property is eventually sold. “I would urge anyone buying a retirement property to ensure that their executors are aware of the circumstances of the lease and that they have the means to pay any expenses,” Tracy recommends.
The rental solution – or is it?
Many families try to offset these ongoing costs by renting out an inherited retirement property while searching for a buyer. But before making such plans, check the lease carefully – there may be clauses that prevent sub-letting entirely or require additional fees for landlord consent.
What should you do?
The message is clear: always seek proper legal advice before buying a retirement property.
Understanding the finer details of the lease agreement will help ensure there are no unpleasant surprises for your loved ones down the line.
While a retirement property might be perfect for your current needs, taking time to consider the longer-term implications will help protect both you and your family’s interests.
Tracy Ashby is a partner in the wills, probate and lifetime planning team based at FBC Manby Bowdler’s Knowle office, Chester Court, 1673 High Street.
For more information, contact Tracy on 0121 740 0983 or tracy.ashby@fbcmb.co.uk