A smiling carer chats with an elderly lady

Heading for a retirement village? What happens when you sell?

Are you thinking of buying a house / flat in a retirement village?

Do make sure you read the terms of purchase and sale.

Some insist that every time the Property is sold the landlord becomes entitled to 5% of the market value of the property (either agreed between you and the landlord or set by a Chartered Surveyor) if the property is sold within one year:

  • 10% if the sale takes place within two years; or
  • 12.5% if the sale takes place after two years.

This means that you will only receive, say, 87.5% of the value of the property if it is sold after three years. That is a healthy penalty to pay.