.
Gina* explains problems with inheriting a shared ownership retirement home.
My mother left us (myself and three siblings) her shared ownership leasehold flat in her will. She bought a 75% share (the only option available) in 2012. At that time the Extra Care block – aimed at over-55s – was owned and run by Hanover Housing. The housing association received public funds to build the development as a partnership with the local Borough Council.
I am the executor for my mother’s will. This means that I’m responsible for carrying out her instructions – including distributing her assets to her beneficiaries (after any debts and taxes have been paid).
Service charges are the main barrier to resale
At the beginning, the service charge was about £300 per month. All was well until Anchor Housing took over about five years ago. Since then, the service charge has risen steeply. It’s now £786 per month, including £221 for catering.
I put my mother’s flat on the market in October 2024. It’s a very nice flat and is currently priced well below market value. However, there have been very few viewings and no-one has made an offer. There are several other flats for sale in the block and all remain unsold, some for five years or more. It’s impossible to sell mainly because of the service charge.
Meanwhile, the service charge continues to accumulate. If the property does sell there will also be costly exit fees.
The family will receive nothing; it will all be whittled away in service charges
To make things worse, I’m unable to wind up my mother’s estate until the property is sold and all bills have been paid. The estate will eventually be bankrupt and the beneficiaries will receive nothing.
I’m a member of a WhatsApp group for other executors who are in the same position, trying desperately to sell our properties.
When all this came to light not long after my mother’s death it came as a big shock. Having to cope with this while grieving for my mother was a terrible time.
Mum was a generous and kind person. She would have wanted her children to inherit their share of the estate, not for it to be whittled away in service charges which have been accumulating since September 2024 and now stand at over £10,000.
We have not been idle, paying for adverts to promote the properties, writing to Anchor Housing and to our MPs. The housing association say they have no plans to buy the properties back but refuse to say what will happen to them. The majority of flats are rented out and they could easily buy ours and do the same with them. But we can’t rent them out because the lease doesn’t allow it. We can only sell them to someone over 55 who has been vetted and approved by Anchor.
Whilst Anchor continue to claim full monthly service and catering infrastructure charges there is no financial incentive for them to see the property sold. So, a purpose-built apartment for assisted living stands empty.
*Name has been changed
Featured image: Freepik
Featured image: Freepik
.
Be First to Comment