Retirement flats and property devaluation: the nightmare of the owners

A couple of decades ago, the acquisition of a retirement property was a viable option for all those who were looking for a new home, to be part of a retirement community in the company of other retirees, and above all other things to protect their savings of a lifetime with the purchase of a property that would increase its value over the years. However, in recent years this situation has become a real headache for the owners of retirement flats.

Property developers who specialize in the sale of retirement properties usually offer attractive down payment discounts to convince the client to acquire one of their properties. Although at first glance this seems like an excellent business, the real estate devaluation that has emerged in the UK for a decade is responsible for throwing this idea overboard.

retirement properties

Retirement flats and the devaluation of their value

An example of this situation has been the case of a man who inherited his father’s retirement property once he died. According to the laws, retirement properties can only be acquired and inhabited by single individuals 60 years of age or older, or by couples whose age is not below 55 years. Due to this law, the man was forced to sell the property to obtain some economic benefit, but the situation has escalated to a point of no return as far as real estate devaluation is concerned.

Due to the exorbitant tax and service rates, the property he inherited from his father has suffered a considerable loss of value, having cost around £ 170,000 to the point of assessing the option of having to sell it at just £ 28,000. In case this was not bad enough, he has had to pay around £ 18,000 just for reasons of land rent, service charges, and municipal taxes. To finish turning this into a true nightmare, the owner has suffered what is called “empty homes premium” which allows the municipal council to triple taxes if the house has remained empty for more than 5 years.

Normally when this happens is when the terrible agencies of “sell it now” appear, companies in charge of buying this type of property at very low prices taking advantage of the desperation of the owners and their inability to continue paying the huge tax rates.

sell it now

Once we analyze this situation, we understand why it is necessary to think twice before acquiring a retirement property. Although most of the time a property survey significantly increases the opportunity for sale, when it comes to retirement properties this will not always be possible, mainly due to the prohibition imposed by real estate developers and housing developers that prevents these properties from being sold to through third parties.

If you are being the victim of one of these terrible situations, we invite you to ask for help from experts in the field to avoid falling into the grip of unscrupulous companies whose only desire is to ruin your home.

Remember, your home wellbeing and that of your family is priceless.