Retirement villages compared

Are retirement villages a good idea? Buying in a retirement village has its appeals: living among people your age, as part of a community, in a new custom built home. We look at what they have to offer, but also go beyond the glossy brochures to reveal some hefty service charges and sky-high fees. Read more in our snapshot of retirement villages.

Rebecca Gamble Consumer Journalist

Considering buying a retirement property? These properties, often called retirement villages or retirement developments, are built specifically for those aged 55, 60 or 65 and over. Perhaps you are considering downsizing and moving to a retirement development – in which case read on.

This snapshot of newly built retirement villages from across England, updated in January 2025, takes a closer look at whether they are a good deal for homebuyers. Our look at retirement villages compares:

• What’s on the market
• How much the properties cost
• The fees you’ll pay
• How this compares to non-retirement properties nearby

In reading this it’s helpful to understand the different types of fees you may be charged. These retirement villages fees can include service charges, exit fees, event fees, deferred fees, sinking fees and contingency fees. It’s a lot, we know – so here is a table with a brief explanation of each. Alongside the fees of retirement villages, it is helpful to keep in mind the other costs of buying a property generally.

But with retirement villages, there’s much more to consider than just the service charge and exit fees – substantial as they can be. It’s vital to do thorough research yourself. Find out more in our guide Hidden costs of retirement properties and, as many of the properties are leasehold, it’s a good idea to be aware of the questions to ask and to ensure you have a good conveyancing solicitor to assist with the purchase.

Review of Retirement Villages

1. McCarthy Stone Heathlands, Farnham Common, Buckinghamshire

McCarthy and Stone are one of the biggest names in retirement housing and you’ve no doubt seen one of their retirement villages near you. This development in Farnham Common, Buckinghamshire, features two-bedroom apartments, priced from £420,000 for over 60s. It offers features including a homeowners’ communal lounge, a house manager, a guest suite, balconies and a camera entry system.

How much is the service charge?

For a 2 bedroom apartment the ‘estimated service charge based on similar  properties in the development’ is £122.72 a week (or £6,381.44 a year), reviewed annually. It’s worth noting Council Tax, apartment electricity, TV licence and telephone/broadband are not included in this.

The ‘calculate my own costs’ section on the website shows that this is cheaper than the suggested costs you may pay for a detached 4 bedroom house of £180 a week, or £9,360 a year. But this example assumes you currently live in a 4 bedroom house, and that you currently pay £50 a week on internal maintenance, £60 a week on external maintenance and other costs. So be sure to compare the costs with what you actually pay – the calculator is a rough guide.

How much is the exit fee?

McCarthy Stone says it no longer charges a transfer fee, also known as an exit or event fee, on all leases in all retirement properties built after September 2008. But it does charge a 1% sinking/contingency fee which is paid on resale to cover the maintenance. It also charges a ‘small admin fee’ to cover the costs of checking that the incoming occupier meets the terms of the deed of conditions. It asks people to phone the ‘Property Transfer team’ for more information.

Sinking fee example:

So, If you buy a flat for £420,000 and sell it after 5 years for £475,000, you would pay a ‘sinking fee’ of £4,750.

Our verdict: Lovely tranquil location, located on the border of the Burnham Beeches, a National Nature Reserve and a Special Area of Conservation. Property in Farnham Common is expensive so don’t expect to get a bargain by not opting for a retirement village developer property. But there are apartments available in the same price range that also have shared landscaped gardens but have a much cheaper service charge and no fee payable on selling.

2. Churchill Living, Mortimer Lodge, Bridgnorth, Shropshire

This development has 50 one and two bedroom apartments in Bridgnorth, Shropshire. Facilities include a lodge manager Monday to Friday and an owners’ lounge.

The price range isn’t easily available to see online. At least one owner living in a Churchill apartment must be aged over 60, with the partner being over 55.

How much is the service charge?

The Churchill Living website says ‘many of our Owners are pleasantly surprised that the service charges for their apartment frequently work out less than what they were paying in comparable costs on their previous property.’ But it’s not clear from the Churchill Living website how much service charge is. However, Churchill Living has contacted us directly, telling us the Mortimer Lodge development has a service charge of £2,208 per year for a 1 bed flat and £3,212 for a 2 bed flat.

KEY INFORMATION

Warning: Beware of ‘savings’ claims

A Churchill Retirement Living advert featuring TV star Esther Rantzen was criticised by the Advertising Standards Authority in January 2024 for making misleading claims about the amount of money someone could save on bills by moving into one of its retirement properties. Read more about the case here

Top tip: When you are looking to buy in a retirement village it’s important to establish the service charge and how it is likely to increase year on year, early on in your research.

How much is the exit fee?

According to Churchill Living, ‘There is a 1% contingency fund payment on resale which is ringfenced for any future works needed at the Lodge’.

Contingency fee example:

So, if you buy an apartment for £250,000 and sell it 5 years later for £280,000, you would pay a contingency fee of £2,800. 

Our verdict: We couldn’t find any comparable properties in Bridgnorth. However, there are retirement property resales available, for much less, although these may come with additional fees like exit fees and service charge.

3. Inspired Villages, Ledian Gardens, Leeds, Kent

In this development by Inspired Villages for those aged 65 or above, which is in partnership with Legal & General and NatWest Group Pension Fund, one Bedroom apartments are from £412,000, while two bedroom apartments cost from £465,000.

It definitely scores highly in the facilities stakes: there’s a ‘wellness spa’ and ‘relaxation pool’, an onsite hairdressers and beauty salon, a bistro, a café-bar and room service is available too. The property is set in landscaped gardens and there’s a gym, a library and chauffeured transport can be arranged too.

How much is the service charge?

These facilities come at a cost – but how much? When you click through to one of the available properties on the Inspired Villages website, it states the price, adding ‘Leasehold, service charges and event fees apply’. But no further information is on the page or links to how to find this information.

However, when we requested a brochure by email the information was supplied. It states: ‘For 2024, the service charge will be £8,286 per year (£8,786 for double-occupancy) divided into four equal quarterly payments.’ Although it’s not clear how much the 2025 service charge will be.

Is there an exit fee?

Yes, although it’s called an event fee. There are two options, both of which are significant:

• Option 1: The event fee is a proportion of the open market or deemed re-sale value: 8% for resales in year 1, 12% in year 2, 16% in year 3, 20% in year 4 and 24% from the fifth year. This is payable when the property is sold or there is a deemed sale
• Option 2: A percentage of the purchase price of the property set by the landlord prior to the completion of the purchase. This is currently set at 20%. This is payable to the landlord on or before completion.

Note that subletting the property is not permitted.

Event fee example

• If you choose option 1 and buy a £400,000 apartment and sell it in 5 years’ time for £450,000, you would pay a 24% event fee of £108,000.
• If you choose option 2 and pay the event fee on or before completion, this would be 20% of the purchase price of £400,000, so you would pay an event fee of £80,000. This would essentially increase the purchase cost to £480,000.

Our verdict: With the facilities on offer we would expect this to be a very pleasant place to live. But it comes at a big cost. However, if you’re looking at non-retirement properties in Leeds you’ll find apartments on the market that cost significantly less.

4. Audley Retirement Villages, Scarcroft Park, Leeds, Yorkshire

Set within 110 acres of beautiful land, close to Leeds, the Audley retirement village of 172 luxury properties built in and around the restored Grade II listed building, with one bedroom apartments from £465,000 and two bedroom apartments from £510,000, with a private gym, swimming pool, library and restaurant, for those aged 60 or over.

The properties including cottages are being sold as leasehold properties with a 250 year lease and under the terms of the lease, properties cannot be sublet.

Under the Leasehold and Freehold Reform Act, the sale of new leasehold houses is to be banned, other than in exceptional circumstances. However, while the Act is now law it has yet to come fully into effect. And it’s not yet clear whether retirement houses will be exempt from the ban. Retirement providers did potentially get an exemption in the Act but this is dependent on the secondary legislation that will need to be passed.

Government has not been forthcoming with when they will implement this part of the Act. Further consultation should not be needed but this has not been confirmed yet. We’ll keep this page updated with the latest news.

How much is the service charge?

There are three options for the monthly management fee:

• Option 1: A monthly fee of £1,034.26 for the year ending 01 March 2025 and deferred management charge of 2% per year.
• Option 2: A monthly fee of £790.91 for the year ending 01 March 2025 and deferred management charge of 3% per year.
• Option 3: A monthly fee of £547.55 for the year ending 01 March 2025 and deferred management charge of 4% per year.

Also, parking costs £600 per year.

Is there an exit fee?

A ‘deferred management charge’ is payable from the sale of your home up to a maximum amount of 28% of the ‘final achieved sales price or open market value, whichever is greater’.

The amount you’ll pay depends on the option you choose:

• Option 1: The deferred management charge is 2% per year of the final achieved sale price or the open market value, whichever is greater, increasing every year up to a maximum of 14 years (28%) – payable on change of occupier.
• Option 2: The deferred management charge is 3% per year of the final achieved sale price or the open market value, whichever is greater, increasing every year up to a maximum of 10 years (28%) – payable on change of occupier.
• Option 3: The deferred management charge is 4% per year of the final achieved sale price or the open market value, whichever is greater, increasing every year up to a maximum of 7 years (28%) – payable on change of occupier.

Exit fee example:

If you buy a £500,000 property and sell it in 5 years’ time for £560,000, you would pay a 10% event fee of £56,000 with option 1, a 15% event fee with option 2 of £84,000. While with option 3 you’d pay a 20% event fee of £112,000.

Plus, Audley Retirement Villages also lists the following as ‘Costs Upon Leaving’: a sales admin fee of 1% of the final achieved sales price or open market value (VAT applicable), whichever is greater. And an additional 2% ‘sales agency fee’ if Audley are the marketing agent (VAT applicable). On a £560,000 property, a sales admin fee of 1% plus VAT is £6,720. While a 2% + VAT sales agency fee would be an additional £13,440.

Our verdict: It looks like a beautiful development with great facilities but it comes at a cost – especially the ‘event fee’. When we took this snapshot there were no comparable properties in the immediate vicinity but by looking a few miles away, you can find much cheaper non-retirement properties that might not have the facilities but don’t come with the additional fees.

Need advice reviewing your finances for retirement? Find the right Independent Financial Adviser for you today with our partners at Unbiased

5. Riverstone Kensington, London  

Riverstone Living’s luxury development in Kensington, West London offers apartments for the over 65s from £995,950 for a one bed, from £1,250,000 for a 2 bed, and from £1,950,000 for a three bed. Facilities include a restaurant, a bar, library, exercise studio, private cinema and indoor swimming pool. Plus, there’s a 24-hour Concierge and Security. You’re not allowed to sublet or rent out the property.

Retirement villages compared: How much is the service charge?

There are different options for the monthly membership fee.

• With option 1, the monthly membership fees are: £1,499.49 for 1 beds (£17,993 per year), £1,594.98 for 2 beds (£19,128 per year) and £1,918.80 for 3 beds (£23,016 per year). With this option, the fee increases each year on 1 January in line with inflation but cannot increase more than 4% in any one year. When you sell, the membership fee will be increased in line with inflation but without the cap.
• With option 2, your membership will be the same but ‘fixed for life’ during your ownership. When you sell, the membership fee will increase in line with inflation.
• With option 3, the same membership fees apply but reduced by 50% and ‘fixed for life’ during your period of ownership. When you sell, the fee will increase in line with inflation.

Car parking space costs £3,900 per year.

Is there an exit fee?

You’ll be charged a ‘Deferred Fee’ as a percentage of the sale price when the property is sold. The amount you’ll pay depends on which option you choose above.

• Option 1: A 4% charge for every year you own the apartment, capped at 28%.
• Option 2: A 6% charge for every year you own the apartment, capped at 30%
• Option 3: A 7% charge for every year you own the apartment, capped at 35%.

You’ll also need to pay an administration fee of £550+ VAT when you sell the property; this isn’t charged if you appoint Riverstone as sales agent when you sell.

And note: there is also a restriction on selling that states that all apartment sales ‘have to be at open market value’.

Deferred fee example

If you buy a £1,000,000 apartment and sell it in 5 years’ time for £1,125,000, you would pay a deferred fee of £225,000, with option 1; £337,500 with option 2; and £393,750 with option 3.

Our verdict: This is an extremely stylish development with a wow factor offering top notch facilities – but again, they come at a high price. There are new build apartments available close by for less – they don’t have the same facilities but they don’t have the same costs.

Need advice reviewing your finances for retirement? Find the right Independent Financial Adviser for you today with our partners at Unbiased

Is renting a retirement village flat a better alternative?

One way to avoid expensive exit fees but still enjoy the facilities of a retirement village may be to rent a property.

For example, at Inspired Villages, Ledian Gardens, you can rent a property which has a purchase price of £601,000, for £3,606 a month, plus service charge. Based on the figures for service charge given for 2024 of £8,282 per year, this works out as:

Example annual cost of renting a retirement village property

Example annual cost of owning a retirement village property

By comparison, if you bought the property for £601,000, you would be liable to pay an event fee of 8% if you sell after a year (assuming you haven’t chosen to pay the exit fee up front).

However, while this example shows that renting is cheaper in the first year, it’s worth noting that the event fee is capped after 5 years at 24% so there will be a limit on what you pay and that isn’t the case if you’re renting.

But if you are considering selling your house to rent a retirement property, it’s vital to get financial advice. That’s because if you sell your house and rent a property with your partner and one of you needs to move into a care home, the proceeds from your house will be counted as your savings to be used towards the cost of care. Find out more in our guide How to avoid selling your house to pay for care