Press release —
Spiralling Retirement Community Property fees force sale of flat for just £1
Former retirement community flat owner loses everything as she gives property away for nominal sum
The retirement community dream
For many of us, our parents start to need help in small, then escalating ways while we are still relatively young and managing our own families and careers.
At some point, it can become clear that their momentary lapses may begin to present a danger to themselves and others. In some cases we can move them in with us or live close enough to keep a closer eye on them, but it is not always possible for reasons of space, safety and privacy.
Care homes used to be the only option, but for a person able to manage their own lives 90% of the time, the idea of being moved to a regimented living environment where very little personal autonomy remains can sound like a living hell.
Retirement community properties would seem to be the ideal solution. The elderly person retains agency over major and minor life decisions, but different tiers of help are available for when they need it.
Perfect...
The unfortunate reality
Only around 1% of UK pensioners live in retirement community properties. This is significantly lower than in other developed countries, with comparable rates being roughly 5–6% in the USA, Australia, and New Zealand, indicating the UK market is roughly 20 years behind in this sector.
The main reason may be a lack of confidence among the UK elderly and their families. National retirement community property developers have come under heavy fire in the media over the last few years. Several cases have been reported to credible outlets, covering how 'out of control' fee increases have led to devastating crashes in property values, and associated difficulties in selling.
European Consumer Claims (ECC) are the company seeking financial compensation for people who were mis-sold retirement community properties retirement. ECC client David (name changed at own request) recently attended his annual tenants' meeting on behalf of his parent who owns a flat in a well known retirement development aimed at the over 70s. He also keeps in touch with many of the other owners and he has shared in confidence with ECC many of their devastating experiences.
The consistent theme is that people are finding it extremely difficult to sell retirement community properties without significant discounts on the price they originally paid.
"People are telling me that they can't sell even when they discount by 50% or more," says David "It's the fees, they are out of control and prospective buyers just don't want that kind of ongoing expense. Especially when they know that there is no limit or restriction on how much those fees can be increased by the management company each year.
"I talked with multiple different estate agents when trying to sell my parent's property, including the developer's own in-house resales team. Every professional I spoke with told me that these properties are extremely difficult to sell. Many of them believe that sooner or later people will end up giving these properties away in order to escape the commitment of the annual fees.
"I personally met one former owner who sold their property for the nominal sum of one pound sterling for that exact reason. They were around £80,000 behind on the fee payments, and the new owner had to pay those, so it wasn't like they were getting the flat for free. But it illustrates the desperation involved. The sellers lost everything."
Expert comment
Consumer expert Greg Wilson, CEO of European Consumer Claims, believes the situation may get worse before it gets better.
"We are used to this pattern with timeshare ownerships and holiday park lodges," explains Wilson. "The fees spiral out of control to the point where owning becomes a serious financial burden that no potential buyer wants.
"With timeshare memberships, people are not only unable to give away something they may have paid tens of thousands of pounds for, but in most cases they need professional help to free themselves from the ongoing fee commitment. Holiday parks have similar issues but for different reasons. It comes as no surprise that people are having to drastically reduce their asking price for these retirement community properties, nor that this person had to sell their flat for one pound just to escape the crushing financial burden.
"With retirement community properties the stakes are even higher than with timeshare or holiday parks The sums involved are hundreds of thousands of pounds and often represent a person's whole life savings. The fact that they are elderly and vulnerable compounds the harm being done. The government is currently taking steps to curb the annual costs, especially in the cases of leasehold properties like the ones offered by UK giants McCarthy Stone and Churchill. However these proposed laws may not be fully operational for a number of years, and there are also countless historical cases of mis-selling that need to be addressed.
"The long and short of it is: If you believe that you have been mis-sold a retirement community property do not give up hope. Seek expert advice. You may well find that you have legal avenues available to seek financial redress."
Related links
- European Consumer Claims (ECC)
- Greg Wilson: Consumer hero
- Retirement community consumer abuse epidemic wiping out life savings across Britain
- Urgent calls to regulate the UK retirement community industry
- Retirement home nightmare: Who can a full time worker trust with their elderly relatives' wellbeing?
- Leading claims firm targets justice for Brits who lost life savings buying retirement community properties
- ‘I bought elderly mum flat in a retirement home, now we face losing £200K – staff call her building ‘the triangle of death’
- I can't sell Mum's retirement flat - and it's costing me thousands
- This article is more than 1 year old My brother has fallen victim to the retirement home transfer fee money grab
- ECC Managed Retirement Property Claims
- Maintenance bills leaving your account, or a compensation award being paid in? The choice is yours
- Lifeline for Cornish couple who 'lost savings' to billionaire Alfie Best's holiday park, as leading UK firm ECC steps in to help
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Relevant websites for this article
www.holidayparkadvicecentre.co.uk
www.americanconsumerclaims.com
www.timeshareadvicecentre.co.uk
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