Living in a retirement community

Moving into a retirement village or a retirement flat means living in a place that someone else runs. The homes are almost always sold on a lease. Leaseholders who pay a service charge can ask how it is worked out and what it is spent on.

What counts as retirement housing

In its planning guidance for England, the government describes several kinds of specialist housing for older people. Age-restricted housing is "generally for people aged 55 and over and the active elderly", and it may have shared gardens.

Retirement living or sheltered housing is usually purpose-built flats or bungalows with a few shared rooms, such as a lounge. Residents get some support to live independently, which can include a warden or house manager. Extra care housing has care available if a resident needs it, through an agency on site registered with the Care Quality Commission. The guidance says some of these developments are known as retirement communities or villages.

A home on a lease

GOV.UK says "Most flats are leasehold". The Law Commission says retirement homes "are almost always sold on a leasehold rather than freehold basis".

A leaseholder owns the home for a fixed period, and the lease says how many years that is. GOV.UK says the lease also sets out the way the service charge is organised and what can be charged.

Seeing how the charge is worked out

GOV.UK says a leaseholder who pays a service charge has the right to ask for a summary showing how the charge is worked out and what it's spent on. They can also see the paperwork behind the summary, such as receipts.

The landlord must give this information. GOV.UK adds that "it's a criminal offence if they do not".

The codes a manager may follow

The Older People's Housing Taskforce reported in November 2024. Its report says two codes on managing leasehold homes "are formally approved by the Secretary of State". They are the RICS Service Charge Residential Management Code and the Association of Retirement Housing Managers (ARHM) Code of Practice.

The report says both "can be taken into account in court/tribunal proceedings". It also says "not all operators are signed up to a code".

Disputing a charge

GOV.UK says a leaseholder may be able to apply to a tribunal if they pay a charge and think it's unreasonable. The same applies if they think the standard of the work is unsatisfactory, or that they should not be paying it at all. They cannot apply if they have agreed to pay the charge, if a court is already dealing with the dispute, or if they pay a fixed charge.

The power to decide whether a service charge is payable, and how much, is in section 27A of the Landlord and Tenant Act 1985. The First-tier Tribunal (Property Chamber) handles leasehold disputes. The Leasehold Advisory Service says it gives "free, government funded advice" on problems with a leasehold home.

Fees when a home is sold

Many retirement leases require the owner to pay a fee on certain events, such as a sale, sub-letting or a change of occupancy. The Law Commission calls these "event fees", and it published its final report on them on 31 March 2017.

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