Advice for families stuck with unsellable retirement properties

Categories: Conveyancing, Property

Conveyancing expert Nicola Fury has offered advice to families facing crippling bills after inheriting hard-to-sell, age-restricted retirement homes.

A BBC investigation found that families are struggling to sell retirement homes they have inherited – even when they slash the price by six-figures or more.

In an already challenging market, buyers can be put off if apartments are only accessible to people over a certain age, leaving the new owners paying thousands of pounds a year on ground rent, council tax and service charges.

One expert estimated there are around 10,000 empty properties in retirement blocks across England and Wales.

Nicola Fury, Conveyancing Director at ORJ, said there are steps people can take to maximise their inheritance.

Nicola said: “When age restriction is included in the terms of a lease, it can make a property extremely difficult to sell. It is simply a very restrictive market and we have heard of people struggling to sell flats, even after reducing the price by £100,000 or more.

“When annual charges are considered, the property can become a millstone for the beneficiaries rather than the gift it was intended to be.

“But there are options available. Firstly, if leasing rules allow, it could be possible to let the property temporarily to cover the costs and maintenance until a buyer can be found. McCarthy Stone, for example, often allow privately owned properties to be rented out.

“Another important consideration is HMRC values property at the date of death. So, by using today’s lower valuation, immediate inheritance tax liability might be reduced, giving beneficiaries breathing space.

“For those who can cover the annual running costs, it could be worth holding onto the asset until the market improves and ground rent policies change at the end of 2028, which will make these properties more saleable.”

Nicola added that when inheritance tax pressures are high and letting the property isn’t feasible, a fast sale to a cash buyer might be the most practical solution.

 “This approach avoids prolonged uncertainty and simplifies estate administration,” she said.

ORJ has some of the most trusted conveyancing and property solicitors in Staffordshire and Shropshire, providing expert advice in all circumstances.

Contact us today for advice and guidance.