Specialist housing for older people provides independence, support and companionship in later life and has a positive impact on people’s wellbeing and satisfaction.
Service charges are necessary to ensure that essential maintenance, service and repairs are carried out. A management company is necessary to collect the service charges and to ensure that residents receive a high level of service.
Service charges are highly regulated by national legislation and retirement operators are obliged to adhere to the Code of Practice operated by the Association of Retirement Housing Managers. It is always important to check the service charges before buying a retirement property and ensure it is affordable. Beechcroft always provides an estimate of service charges when selling homes on a new development
Beechcroft provides a careful balance of service and affordability. Residents only pay for the services provided and the service charges on each development are used to maintain that development to a high standard.
Service charges cover the cost of the estate management including cleaning of the communal areas, any maintenance work, the upkeep of the landscaped setting, cleaning of the communal areas, lighting and water charges associated with the communal areas and the cost of any maintenance agreements in place for lifts.
The service charges also cover some of the things that you would have been paying for in your previous home including the upkeep of your private garden, buildings insurance and external window cleaning.
The service charges also include a ‘reserve fund’ – an amount of money set aside for future works.
Neither Beechcroft nor the Managing Agent, ELM, make a profit on service charges. Service charges are not profit-making and are calculated to cover the annual costs for the services provided.
At Beechcroft, the Estate Manager on each development handles the day-to-day administration of the development, including organising the cleaning and maintenance of communal areas, external window cleaning and the upkeep of both private and communal grounds.
The Estate Manager on each development ensures the highest standards of on-site health and safety, ensures that maintenance and repairs are carried out to a high standard by contractors.
The Managers also organise the upkeep of both private gardens and landscaped settings and, this means that the development becomes more attractive year after year. Buildings and settings that are well maintained ensure Beechcroft homes retain and improve their value over the years.
For both residents and their families, having someone on hand in person or on the end of a ‘phone, in case of emergencies or in times of need, is important, providing peace of mind. For homeowners who ‘lock up and leave’ having someone to keep an eye on the home they have left behind has many benefits in terms of home insurance and peace of mind.
The Estate Managers also provide ‘softer services’ which include being a ‘good neighbour’ checking on properties whilst owners are away, lending residents a hand, preparing and despatching newsletters, helping residents create their own communities by organising coffee mornings and social events.
The Estate Managers do not live on-site or work full-time because this would increase the service charge costs considerably. The Managers work five mornings a week but are available by phone or email should an emergency arise outside these hours.
The management of Beechcroft developments, including the employment of Estate Managers is handled by the not-for-profit ELM Group.
In 2009, when Beechcroft was searching for a thoroughly ethical organisation to be a managing partner, it was attracted by ELM’s excellent reputation and vast range of expertise. Since the agreement was signed in 2009, the partnership has proved highly successful. ELM’s not-for-profit management service means that residents only pay for the services provided.
“It’s lovely to have an estate management service. The window cleaners come regularly and the gardeners come every week and I am happy with that. Living in my former home, it was a chore having to mow the lawn every week. Now, I can sit in the garden and enjoy it because the gardening of my private garden is done for me which gives me more time to enjoy things. The estate management service will also be useful when I go away because there’ll be someone to keep an eye on my home.”
, Castle Gardens, Watlington
Founded more than 50 years ago, the ELM Group (which includes the Retirement Leasehold Housing Association and Ethical Leasehold Management Ltd) provides a comprehensive property management service to all sectors of the residential property market.
Today, ELM Group is one of the country’s leading estate management companies, providing a tailored approach to all sectors of the residential property market, working with developers, leaseholders, right to manage and housing associations.
On being advised of a death, ELM Group communications with the executors and discusses the service charges that are payable despite the property being vacant.
If the executors advise that they don’t have the funds to pay the service charges, ELM usually offers a three-month period whilst probate is settled. During this period, it is important that ELM is updated as to any progress.
At the end of the three-month period, ELM contacts the executors again and discusses plans for selling the property.
If the executors advise that the property is on the market and they still do not have the funds to pay the service charges, ELM agrees to collect the service charge payments due once the property is sold. Again, it is important for the executors to keep ELM updated on the progress of the sale.
ELM does not enter into any credit control procedure and will be as helpful as possible.
When buying any home and, particularly, a retirement home, it’s important to choose a property with plenty of space, light, kerb appeal and an excellent location which will not only increase in value over time (whatever happens in the wider property market) but also appeal to other buyers.
Beechcroft homeowners are able to sell on the open market, as long as the buyers meet the age criteria, generally over the age of 55.
One recent report suggests that around 95% of all privately-owned retirement properties are occupied, and around 5% have been on the market for six months or more. This is not disproportionately high given the age at which people move in, that this is often their last move, and the length of time for probate to take place.
One of the main reasons why retirement homes may be difficult to sell include expensive service charges and exit fees. Beechcroft always strives to keep service charges to an affordable level and doesn't charge exit fees.
Retirement housing is not immune to the effects of the general housing market downturn, which has seen properties of all types take longer to sell.
If any property, retirement or mainstream housing, is located in a desirable area and has been designed, built and finished to a high standard, it is more likely to retain or increase its value. The uplift in price is often dependent how quickly you need to sell, the condition of your home and the short-term fluctuations in the local property market.
Over the years we have found that most Beechcroft properties retain their value on the resale market.
Beechcroft doesn't charge exit fees, also called deferred management charges, transfer fees or contingency fees.
Retirement village properties are usually sold on a leasehold basis and the leases may require the owner or the owner’s family to pay a fee when selling or renting to someone else. If you sell, how much you pay may be a percentage of the value of the home or the price you sell for. This can range from 2% to 30% of the selling price depending on the development where you live.
The exit fees are referred to by different names but the Law Commission refers to them collectively as ‘Event Fees.’ Regardless of their name, these are fees that the seller or their family needs to pay when a resident permanently leaves the particular retirement community, typically on the sale of the property.
“I love my job – I am semi-retired so it’s ideal. This job is all about meeting people. All the homeowners are all very nice– and some of them have some really interesting life stories. Some of them went through the war and the hardships of the post-war years and they are not strangers to difficult times. The grounds are lovely at Orford Place – and I’m also working at The Clockhouse at West Byfleet at the moment – and the grounds there are beautiful as well.”
, Estate Manager
Beechcroft’s close relationship with care home providers such as Porthaven mean that residents are able to take advantage of a menu of additional services on offer at the care home from hot daily meals and cleaning to hairdressing and social events. The care home will only charge you for the services you need – including short term respite care if you require this following an operation or illness.
Understanding the fees and service charges associated with retirement living is an important step when choosing the right home for your future. At Beechcroft, we believe in complete transparency so that you can make an informed decision with confidence.
If you are exploring retirement living or ready to take the next step, you can browse our collection of beautifully designed homes across the UK. Our developments offer spacious properties, attractive landscaped settings and welcoming communities for people aged 55 and over.
Whether you are looking to move closer to family, downsize to a more manageable home, or enjoy the benefits of a low-maintenance lifestyle, Beechcroft developments are designed to support independent living while providing peace of mind.
Explore our latest developments and available homes to find the retirement property that’s right for you.
