Retirement flats are one of several different types available in the UK.
They are often well-suited to a significant part of the population.
However, this limits their market when it comes to selling them.
If you want to understand how to sell one quickly, read on.
What is a retirement flat?
A retirement flat is a flat designed explicitly for people over 55.
This flat is usually in the broader community of retirement flats. And it has everything needed for an independent person while still providing care and support when needed.
A retirement flat will often have a higher-than-usual service charge fee. This is because the surrounding community is well looked after.
Similarly, ground rent is often high, and lease restrictions may be involved.
Retirement homes can provide a safe, luxurious and comfortable environment for those in later life – along with high-quality facilities.
It also represents an excellent opportunity to socialise because other people of a similar age bracket surround you.
How common are retirement flats?
With retirement flats often declining in value in recent years, it is no surprise that property developers favour other properties.
For example, retirement communities require considerable space, which could be better in significant cities and towns with high population density and limited space.
Similarly, bungalows are one of the most common types of retirement property. However, they are becoming less frequent as they generate less value per square footage than a block of flats.
Therefore, while retirement developments are still being built in areas around the country, they are far less prevalent than they once were.
How much does a retirement flat cost?
An article published by lottie.org outlined the typical price of a one-bedroom retirement flat in different regions of the UK.
In 2024, the latest figures were as follows:
- East Anglia: £213,950
- East Midlands: £224,560
- London: £708,200
- North of England: £215,922
- South East: £342,900
- South West: £260,082
- West Midlands: £238,481
- Yorkshire: £214,927
Remember that renting a retirement flat is also possible. The monthly average rent ranges from £1,256 in East Anglia to £3,896 per month in London.
In addition to the prices listed above, you should also factor in the service charge and ground rent involved with retirement communities.
These can be steeper than the ‘average’ flat and vary for each location and development.
Do retirement flats keep their value?
According to research by the Elderly Accommodation Counsel, around half of newly built retirement homes sold during 10 years were later resold at a loss.
A major reason retirement flats lose value is that their target market is smaller than that of other properties.
It only aims at over 55s, but most people in this age bracket do not live in retirement properties.
Therefore, with fewer interested parties, sellers sometimes compromise on the selling price to complete the sale.
On platforms such as Rightmove, retirement flats are often the least expensive property in any given area.
For example, is not uncommon to find retirement flats in the south-east of England being sold for below £200,000. This is significantly below average for a regular flat in that region.
How long does it take to sell a retirement flat?
If you have inherited a retirement flat or want to leave one, you may wonder how long it will take to sell one.
Afterall, in general flats are harder to sell than houses (because of the higher number of them on the market).
According to online sources, the average time to sell a flat in the UK is 220 days (just over 7 months).
However, with retirement flats being significantly more challenging to sell, you can expect the average to be even higher than this.
Many people who have sold retirement flats in recent years have felt the need to reduce their asking price to find a willing buyer.
How to sell a retirement flat quickly
As mentioned above, owners of retirement flats often compromise on price to find a buyer quickly.
Some estate agencies with an extensive network of older buyers may be interested in purchasing.
Similarly, your network of friends and family may include people in their later years looking to buy a retirement property.
The quickest way to sell your retirement flat is to go directly to a cash-buying company. If the company is trustworthy, it can purchase your flat for up-front cash and complete the transaction within 7 days.
This latter option is particularly useful if you have inherited a retirement flat and want to sell it in poor condition.
Likewise, cash buyers can purchase a retirement flat with a short lease.
Are retirement flats still being built?
Although many property developers prefer high-rise residential developments, all is not lost for people looking for new retirement flats.
Some data suggests that these properties are still being built across the UK.
According to Knight Frank, more than 3,300 Retirement Housing units were built in a recent calendar year.
Over the last five years, nearly 20,000 retirement housing units have been added to the supply.
What happens if a retirement flat lease becomes too low?
In most instances, extending a retirement flat lease is the same as with any other property type.
The freeholder will typically quote you a price to extend the lease, and then you will have to decide whether it’s worth it.
If the lease is less than 80 years old, potential buyers may struggle to get a mortgage on it, and you could be forced to sell to a cash buyer.
Is my retirement flat service charge at a reasonable price?
Potential buyers of your retirement flat will want to know the service charge, which heavily impacts their outgoings when owning the property.
According to internal data from lottie.org, a retirement property’s average weekly service charge is £120.93 (or £523.99 per month).
This can vary significantly depending on your location within the country, though, and the complexity of the retirement community (e.g., how many facilities are on offer).
You should research service charge fees in your local area to see how yours compares. This information is usually readily available on Rightmove listings, amongst other places.
Do I have to pay exit fees when I sell a retirement flat?
When you sell a retirement flat, you may face ‘Exit Fees’ (also known as ‘deferred management fees’). These are charged once the sale is completed.
These fees aim to cover the costs of maintaining retirement villages and future repair costs.
Your lease will detail these fees, specifically when you must pay them. So you should be clear on the terms before buying or selling a retirement flat.
Sell your retirement property with We Buy Any Home
We Buy Any Home are chain-free cash property buyers who can purchase your property up-front and quickly, without hassle or stress.
We offer the perfect opportunity for you to sell a retirement flat quickly.
Fill in our enquiry form below if you want a cash offer for your home.
