Reasons why retirement flats can be very difficult to sell include expensive service charges, punitive exit fees and issues with the lease. We examine these issues, offer advice on how to sell a retirement flat and how to best protect yourself if you are looking to buy.
New retirement flats are an attractive proposition. A nice shiny new place to down-size to, with everything you need from like-minded neighbours, an on-call manager and possibly a range of facilities too. So why then are they so hard to sell on?
This isn’t a new phenomena or a product of today’s housing market. Sebastian O’Kelly, from the charity Leasehold Knowledge Partnership said families have seen ‘millions of pounds lost’ when trying to sell retirement housing over the last decade.
So what’s going on?
KEY INFORMATION
Reasons retirement flats don’t sell – summary
Retirement flats can be difficult to sell due to a variety of reasons. Here are the main issues:
Expensive service charges which usually cost thousands of pounds per year and are payable even when the property is empty.
Steep exit fees. You may need to pay fees to the developer when you sell or sublet.
Restrictive leases that could stop you subletting the property, require you to pay to redecorate the property before it’s sold or even dictate how much you can sell the property for.
Limited buyer pool. Only people above a certain age can live in these properties.
Financing problems.If someone needs a mortgage, they may find it much harder to get on a retirement property.
Market conditions can affect how easy it is to sell, for example if there are lots of similar properties locally for sale.
Consumer awareness. The more people know about the problems of owning and selling retirement flats, the less likely they may be to buy one.
Let’s explore each of these issues in turn…
1. Expensive service charges
Retirement flat service charges cover things like the upkeep of and utility bills for communal areas, the services of a house manager or caretaker, cleaning costs, building maintenance and repairs.
But because they are so expensive, increase over the years and can be quite opaque, they can make a retirement property resale quite an unattractive proposition.
However, while some retirement flat service charges are lower, others are much higher – we’ve seen one retirement flat development that charges over £20,000 a year in service charge. Read more in our guide Retirement villages compared.
Service charges can rocket
Even if the retirement flat’s service charge seem reasonable at the point of purchasing the flat, the service charge may have jumped significantly since, making the property much harder to sell.
We’ve heard of cases where service charges started at just a couple of hundreds of pounds a month, but increased to nearly £1,000 over time. While there’s action you can take to challenge service charges, this can be a time consuming and expensive process.
Retirement flat service charge case studies
Retirement flat service charges vary widely. You can expect to pay more for more services. For example:
In this McCarthy Stone retirement development in Farnham Common, Buckinghamshire, with communal lounge and 24 hour alert system, which features two-bedroom apartments, priced from £349,995 for over 60s, the ‘estimated service charge based on similar properties in the development’ is £122.72 a week (or £6,381.44 a year), reviewed annually.
In this Inspired Villagesdevelopment in Leeds, Kent, you get a swimming pool, gym, hairdressers and restaurant and the 2024service charge will be £8,286 per year (£8,786 for double-occupancy) divided into four equal quarterly payments’. This development is for those aged 65 or above. One bedroom apartments are from £412,000 and two bedroom apartments cost from £465,000.
The majority of retirement property leases require you to pay an ‘exit fee’ (also referred to as transfer fees, event fees or departure fees), when the property is sold or sub-let. But you may also need to pay it if there is a change in who lives there, for example if a relative, new partner or carer moves in.
While exit fees of 1% or 2% of the sale price are common, they tend to average around 12%, according to the Leasehold Knowledge Partnership. But some retirement flats charge much more. For example:
While this Mayfield Villages development in Watford charges a ‘deferred management charge’ of up to 30% of the sale price or open market value, whichever is higher, when the property is sold.
It’s no surprise then that high exit fees can put off potential buyers making these properties harder to sell.
Exit fee example cost
Here’s the exit fee you’ll need to pay if you sell a retirement flat for £400,000 and need to pay the average exit fee of 12%.
Property value
Exit fee %
Exit fee £
£400,000
12%
£48,000
A buyer’s conveyancer should warn the buyer of these fees as part of the conveyancing process, which may account for why retirement properties aren’t selling.
3. Restrictive leases
As part of the conveyancing process, a potential buyer’s conveyancer will also warn them about any restrictions on the lease. This could lead to the sale falling down if the buyer isn’t happy with it. Read more in our guide on Leasehold conveyancing: Fees, process and how long it takes.
For example, some retirement flats’ leases forbid sub-letting the property, this means that if your loved one moves into long-term care or sadly dies, you won’t be able to let it out to help cover ongoing costs like service charges and council tax.
While other leases we have seen say that you have to redecorate the property at your own expense before being allowed to sell.
And we’ve even found one case that says the retirement flat cannot be sold for less than market value, leaving the owners trapped.
The more restrictive the lease, the more difficult you may find it to sell the retirement flat.
Due to their nature, there are restrictions on the age of who can live in them. It could be for 55 years and over although some are only available to those over 60, 65 or 70 years old.
The fewer potential buyers a property has, the harder it can be to sell.
Can a young person buy a retirement flat?
Yes, it’s usually possible for a younger person to buy a retirement flat, even if they can’t live there due to their age. For example, this may happen if someone wants to buy a home for an older relative. But the relative will need to meet the age restrictions in the flat’s lease.
5. Financing problems
If you need to borrow to buy a retirement flat, with either a traditional mortgage or a retirement interest only (RIO) mortgage, you may find it more difficult.
Any type of property where the resale market is limited by conditions can be an issue for mortgage lenders – in this case, it’s the age of the people who can live there.
Also, if the service charge is very high that could cause an issue. For example, some lenders may refuse to lend if the service charge is above a certain level compared to the value of the property.
The lender will also consider the valuer’s view, which will have a big bearing on the likelihood of it being acceptable. ‘A smaller development in a desirable area may be less likely to raise concerns over the ability to sell the property for example,’ says L&C Mortgages‘ Mortgage Expert, David Hollingworth.
However, some lenders do consider lending on these properties so if you’re considering this, it’s important to get expert mortgage advice.
Expert’s view on retirement flats financing
David Hollingworth at L&C Mortgages says, ‘Many lenders are unlikely to be able to accept this type of property and will have concerns over the ability to sell the property if necessary. ‘There are some lenders that may be able to consider the property but there may still be more detail required for it to be acceptable.
‘It’s also likely that the loan to value will be more limited than the standard so a bigger deposit will be required.’
The conditions in the property market will also have an impact on how easy it is to sell your retirement flat. One common issue for sellers is they find there are glossy new retirement flat developments nearby with big marketing budgets that are attracting buyers, especially if they come with incentives like stamp duty paid or part exchange.
Another issue that can cause problems is if there are multiple resale properties on the market in the development. This can lead to a saturated market.
There’s also the ‘new build premium’ to consider. When you buy any new build property, you’ll pay a premium for the fact it’s brand new. You can expect a property to fall in value the minute you turn the key in the door. This isn’t usually a problem where you would be buying a home for the longer term, but may mean having to sell at a loss if you need to do so within the first five years after purchase.
7. Buyers cautious due to the problems
In recent years and due to campaigning by us here at HomeOwners Alliance, the Leasehold Knowledge Partnership and by newspapers including The Times and The Telegraph, there is more awareness of the pitfalls of retirement flats.
Shortly afterwards, the presenter said she will no longer work with McCarthy Stone after years of being paid to open new developments. A spokesman for the presenter told The Telegraph “she has no further planned dealings with this company, particularly in the light of the information raised”.
How long do retirement flats take to sell?
Last year it took an average of 78 days to sell a retirement flat, compared with 50 days on average for all types of flats, according to Hamptons. However, 1 in 10 retirement flats take more than a year to sell.
But bear in mind these figures only include homes that manage to find a buyer – around half of retirement flats don’t find a buyer first time around.
How much do retirement flats sell for?
According to research by JLL in 2022, it found that only 66% of retirement homes increased in value by the time they were resold. But this can vary significantly between developments.
Mccarthy stone resales
Land Registry figures show that 59% of McCarthy Stone properties built between 2010 and 2019 and then re-sold have fallen in value,according to research by The Times in April 2025. It found the average loss was16% but 1 in 50 homes had lost more than half their value.
In one extreme case reported, a property in Lancaster lost 88% of its value in 7 years, falling from £285,000 to £35,000 when it was sold in July.
Over the same period, the Halifax house price index has grown by 42%, although the value of flats has increased by less.
However, McCarthy Stone insists that the majority of its flats increase in value once you take into account the financial incentives it offers buyers when they first purchase, such as moving costs or stamp duty.
The research into McCarthy Stone resales also found that properties with the highest service charges have lost the most in value, it reported. It found 68% of the company’s Retirement Living Plus properties have fallen in value once re-sold, with average losses of £55,000.
The analysis of thousands of Land Registry records showed the average fall in the value of Churchill homes was 18% or £43,000.
At the time, Churchill told the newspaper that elderly residents benefit from communal areas and facilities that are not available at standard developments, adding that it did not recognise the Land Registry figures and pointed out that 97% of its customers would recommend the company to a friend.
Retirement flat vs non-retirement flat comparison
Retirement flat
Non-retirement flat
Average service charge for retirement flats is £6,287, according to Lottie.
Average annual service charge for a leasehold flat in England and Wales is £2,300, according to data from Hamptons.
Exit fees are often payable when you sell. Range from 1%-35%.
Exit fees are not payable when buying a standard leasehold flat.
Resale values can plummet, especially if there’s high service charge and exit fees. Plus, due to not being ‘new’ anymore.
If you buy a new build flat it may lose value in the early years. But standard flats do not generally lose value in the same way retirement flats can and would be expected to go up in value over time
How to sell a retirement flat quickly
Selling a retirement flat quickly may be easier said than done. However, when it comes to selling a retirement flat, many of the same principles apply as when you sell a standard property. However, there are some differences.
1. Price it right
Do your research carefully when setting your asking price. Check what similar properties have sold for recently and also look at other nearby retirement flat resales currently on the market that will be in competition with you.
Research new retirement flats for sale in the area. These will usually sell for more than retirement flat resales as they have the appeal of being brand new. But they may also offer significant incentives in the form of paying the buyer’s stamp duty and moving costs. So take this into account when setting your price.
Be realistic. If the likely value of your retirement flat is lower than you’d hoped, for example it’s lower than it was bought for, beware of trying to sell it for a much higher amount. If you do, you’ll risk it being on the market for much longer and you may need to pay hefty service charge and council tax fees in this period.
2. Use the best estate agent
Some retirement flat developments have a resale service but think carefully before using it. Ask to see examples of similar properties to yours in the same development – how much did they sell for and how quickly, and check the fees charged too.
Also, consider how likely you think it will be for the resale service to put maximum effort into trying to sell your resale flat when they’re also trying to sell lots of brand new properties.
If you’re choosing an estate agent instead, make sure you get the best estate agent on board. Read our guide on How to find the best estate agent.
3. Prepare it for sale
Take time to show the property in its best light. For example, consider giving it a fresh coat of paint, clean it thoroughly and make any minor repairs like holes in walls or a broken doorknob. Find more tips in the guide 12 tips for selling your home.
4. Consider selling at auction
If you want to sell fast and have certainty the transaction will go through, you may consider selling at auction.
But there are fees you’ll need to take into account and you may have to sell for less than you’d be able to achieve on the open market. Read more in our guide Selling a house at auction: a complete guide.
5. What about quick house sale firms?
If you need to sell a retirement flat in a hurry, using a quick house sale firm may seem appealing. The idea is you can shift your house quickly for an agreed price. But in reality it’s not always that simple.
The market is unregulated and we’ve heard of many cases of consumers who feel they’ve been ripped off by quick house sale firms. So if you are considering this route, do your research carefully. Read our guide Quick house sale firms: What to beware of
“Many retirement flat owners believe they have streamlined their lives while preserving a decent inheritance and relatively straightforward process for their loved ones when they die. Sadly,we know from the many people who have contacted us that the process of selling a retirement flat is expensive and stressful. Often the property has dropped significantly in value and comes with ongoing costs until it sells. We urge anyone considering buying a retirement flat to consider other options and if going ahead to do your research very carefully, get financial and legal advice and involve your family.”
What to do if you’re considering buying a retirement flat
Lots of the retirement flats on offer are beautiful, have great facilities and are in convenient locations. So now you’re fully aware of the potential pitfalls, here’s our advice to managing those potential problems:
1. Involve your loved ones
If you plan to leave your estate to loved ones then it’s important to involve them in your decision to buy a retirement flat. This is because when they inherit the retirement flat they may need to pay thousands of pounds in service charge until it sells. This hopefully won’t be the case but one reader tells us they’ve had to pay over £60,000 in service charges, ground rent and council tax on a flat that was empty for six years while they tried to sell it.
Make sure you and they are aware of the risks and consider how they would cope financially with covering ongoing costs if you die and they struggle to sell the retirement flat.
Depending on how long it takes to sell and where it’s located, they may also need to pay the second home council tax premium too.
And take them along when you visit retirement flats. It can be easy to be swept away with how nice the development looks. They can help you make sure to check all the facts and figures carefully.
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
2. Look for retirement flat resales
Given the amount of problems people can have selling retirement flats, you may be able to buy a resale retirement flat for much less than a new one. Some retirement flat developments offer resales but you can find them on the main property portals like Rightmove and Zoopla.
Although you’ll still need to pay service charge and you may also need to pay ground rent too. The Leasehold Reform (Ground Rent) Act 2022 banned ground rent on most new leases granted from 30th June 2022, setting it at a nominal ‘peppercorn’ rate i.e. £0. While for retirement properties, ground rent was banned from 1st April 2023. But this only applies to leases created after that date.
3. Check the small print
Look at the detail carefully. For example, how long is the lease and what restrictions should you be aware of? Your conveyancer should explain this to you in detail. Getting a good conveyancer if you’re buying a retirement flat is vital. Read our guide on How to choose a conveyancer.
We strongly recommend taking independent financial advice before buying a retirement flat. You’ll need to be certain that you’ll be able to afford the service charge costs in the long term and also be fully aware of all the costs involved.
One way to avoid expensive exit fees but still enjoy the facilities of a retirement flat may be to rent. You may face high rental costs but you won’t need to continue to pay service charge after you’ve moved out and there won’t be exit fees to pay.
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
Frequently Asked Questions
What does retirement flat mean?
Retirement flats are designed specifically to cater for the needs and preferences of older people, typically those aged 55 and above. Although some are designed for those over 60 or over 70.
How many people live in retirement flats?
There are an estimated one million residents living in 770,000 retirement properties in the UK, up from 739,902 in 2019, according to the property company JLL, reports The Times.
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