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What is an exit fee?

An exit fee (sometimes referred to as a transfer fee) is a charge that under the terms of the lease is levied by a landlord at the point of sale of a retirement property.

The obligation to pay these fees is normally fixed by the covenants in the lease. The method of calculating these fees are also fixed by the covenants in the lease.

There is no legislation governing exit fees as this is a private contract entered into by both parties.

A report published by the Office for Fair Trading found these terms to be unfair and set out a number of general principles that all landlords should comply with.

More information you might find useful:

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LEASE is governed by a board, appointed as individuals by the Secretary of State for the Department for Levelling Up, Housing & Communities.