Retirement properties: Law Commission consultation

As it was publicised over the Christmas period when many of us were busy doing other things you may have missed that the Law Commission is currently running a consultation on the fees that many freeholders charge their retirement property tenants.

The consultation is looking in particular at “exit” or “sale” fees that need to be paid to the retirement village when you come to sell your property – these can be up to 30% of the sale value although somewhere around the 12% mark is more common.

The consultation is open until 29th January so don’t forget to have your say before then if this affects you…..

Some residential leases require the leaseholder to pay a fee when they resell the property, sub-let it, and on certain other events. The fee can be up to 30% of the property’s resale price. The money either goes to the landlord or into a fund for the long-term maintenance of the site.