Introduction

Individual flats within a retirement scheme are sold on leases and it may be useful to set out the implications of this to the flat-owner. It is relatively common for older people to ‘down-size’ – to move from a large house into a flat – and this different form of ownership requires some re-adjustment of attitudes. A house is usually freehold and the owner has full ownership and control and will be entirely responsible for all repairs and upkeep of the building. However, a flat within a building is a different issue and the form of legal ownership has to allow for this.

A lease is, essentially, a long tenancy, a right to occupy the flat for a number of years (usually 99 or 125 years), often subject to payment of an annual ground rent. The lease also forms a contract between the individual flat-owner and the landlord and sets out the relative obligations of each party. Normally, the landlord undertakes to carry out all repairs and upkeep of the building and to provide all services set out in the lease – the cleaning, lighting, gardening etc. The leaseholder undertakes to reimburse the landlord through the payment of service charges. The leaseholder has to rely on the landlord to look after the building and provide all support services and has to pay what is demanded, subject to statutory controls.

The landlord also undertakes to ensure the leaseholders’ ‘quiet enjoyment’ of the flat, the right to live there undisturbed. The leaseholder on his or her part undertakes to comply with the rules set out in the lease, typically not to sub-let or carry out alterations without permission, not to disturb or interfere with other leaseholders.

So if you are moving, or have moved, from a house where you’ve been used to making all your own decisions, you will need to consider that your landlord or manager will be taking over many of these responsibilities.

Please note that there can be serious problems in the retirement housing sector as highlighted in reports from the Law Commission, the Competition and Markets Authority and its predecessor the Office of Fair Trading:

• Law Commission: Event Fees in Retirement Properties
• Competition and Markets Authority: Access control and alarm systems: collusive tendering
• Office of Fair Trading: Retirement homes hidden exit fees investigation

Retirement housing is housing that is for occupation by people over a retirement age, usually 55 or 60, which is set out in the lease. A retirement scheme may consist of blocks of flats or cottages/bungalows, and sometimes both types of properties, which are often referred to as ‘mixed schemes’. In almost all cases there will be an alarm call system and most schemes will have a resident or visiting scheme manager.

Wardens (scheme managers)

When retirement housing was first built, almost all schemes had a resident manager who was available to answer emergencies during most hours of the week. Over the years the nature of the warden service has changed and many schemes now have a manager who visits for a few hours each day, so residents have become increasingly reliant on the alarm call system. The duties of scheme managers have changed substantially so that there is more administration and less support provided.

Alarm call systems

An effective alarm call system is essential in providing security for older people particularly as an increasing number of schemes do not have 24-hour cover from the warden service. On schemes where there is a warden or resident manager. any emergency calls will be connected to the warden during the hours they are on duty. The residents will have a pull cord in their property and on some schemes there are also cords in the communal areas. When the warden is off duty, the calls are diverted to a central call centre which will respond accordingly. If the system is compatible, some residents may wear pendants which can be activated easily in an emergency.

Leases of retirement properties are slightly different to other leases because these developments are built specifically to meet the needs of the elderly who wish to live independently but within a sheltered community.

Typically, retirement leases will have clauses limiting the age, category of persons and restricting who the property can be sold or sublet to. The lease may also provide for a resident warden system/caretaker or house manager’s flat which you may have to pay for. They also often contain exit fee clauses which apply at the time of sale or subletting.

When you buy the property, it is extremely important that your solicitor explains what the clauses in your particular lease mean because it is very difficult to vary retirement leases afterwards.

If you are buying private retirement housing, you will normally select a scheme that provides the services you need, or wish to receive, at an affordable cost. The lease will set out the services you are entitled to and explain how the landlord or managing agent will recover the costs through a service charge. Once you have bought your property it is a matter of some concern if those services deteriorate or the costs increase unreasonably.