Retirement flats are one of several different types of flat available in the UK.
They are well-suited to a significant part of the population.
But 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 for people over 55.
This flat is usually in the broader community of retirement flats. It has everything needed for an independent person. It also provides 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.
Ground rent is also often high and there may be lease restrictions.
Retirement homes can provide a safe and comfortable environment for the elderly. This should include facilities and opportunities to socialise.
How long does it take to sell a retirement flat?
In general, regular flats are harder to sell than houses. This is 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 difficult to sell, the average is often even higher.
Unfortunately, at present we can’t find any statistics on exactly how much longer this is.
How to sell a retirement flat quickly
Retirement flat sellers often lower their asking price to find a buyer quickly.
Some estate agencies with a network of older buyers may be able to sell it relatively fast, too.
Sell it privately to someone you know
Similarly, your network of friends and family may include potential buyers. This will reduce estate agency fees.
However, it might still require negotiations.
And, of course, it’s unlikely you’ll know someone who happens to be in the market for this relatively niche kind of property.
Sell it at a property auction
Property auctions hold events where pre-approved properties are bided on.
They generally – but not always – specialise in relatively poor condition properties.
So, whilst they offer a quick alternative to the open market, they rarely get buyers full market value for their property. They also do not guarantee a sale.
Sell it to a cash buyer
The quickest way to sell your retirement flat is to find to a cash-buying company.
Some of these (such as We Buy Any Home) can buy your flat for up-front cash and complete the transaction within 7 days.
Like property auctions, cash buyers don’t buy properties at full market value. But they are willing to buy properties in poor condition, with a short lease, etc.
Besides speed, cash buyers’s other advantage is certainty. They provide a guaranteed sale, unlike auction houses (which depend on the willingness of third-party buyers).
How much does a retirement flat cost?
A lottie.org report listed average one-bedroom retirement flat prices across UK regions.
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.
Besides the prices listed above, you should also factor in the service charge and ground rent. These are usually 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?
Elderly Accommodation Counsel research found half of new-build retirement homes were resold at a loss.
A major reason they lose value is that their target market is small.
It only aims at over 55s, but most people in this age bracket do not live in retirement properties.
With fewer interested parties, sellers sometimes compromise on price to complete the sale.
On platforms such as Rightmove, retirement flats are often the least expensive property.
It is not uncommon to see retirement flats in the south-east of England sold for below £200,000. This is far below average for a regular flat in that region.
How common are retirement flats?
Retirement flats’ value have declined in recent years. So, it is no surprise that property developers favour other properties.
For example, retirement communities need considerable space. This is hard to find in many towns and cities.
Bungalows are one of the most common types of retirement property. But they are becoming less frequent. After all, they generate less value per square footage than flats.
Are retirement flats still being built?
Many property developers prefer high-rise residential developments. But 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 last 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. You will 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. This might mean your only option is to find 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. This impacts their outgoings when owning the property.
According to lottie.org, a retirement property’s average weekly service charge is £120.93 (or £523.99 per month).
This can vary depending on your location within the country, though. And according yo 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 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 complete.
These fees cover the costs of maintaining retirement villages and future repair costs.
Your lease will detail these fees and 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. We 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.
