The Law Commission has launched a consultation into “leasehold event fees”, which often leave owners of retirement flats and their families with a hefty, unexpected bill.
The fees, which are typically set at around 1% of the property sale price but may be as high as 30%, allow older people with a low income to defer the running costs of their flats until the property is sold. However, the owners are shocked at how high the fee is when they sell.
The Law Commission consultation, Residential leases: fees on transfer of title, change of occupancy and other events, asks: should developers, landlords, managing agents and estate agents do more to make potential buyers aware of event fees; and can this be achieved through industry codes of practice?
Stephen Lewis, Law Commissioner, says: “Older people are able to live independently in specialist retirement housing thanks to its design and the services provided on site. There are good reasons why they might want to defer some of the associated costs, and pay an event fee when the property is sold. But too many people are being taken by surprise by hidden event fees.”
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