A family in Oxfordshire is facing financial and emotional difficulties after inheriting a retirement flat in Slough that has proven difficult to sell due to high service charges. Cathy Redman and her husband, Mark, have been managing the property since the passing of her mother, Josephine Moran, in February 2023.
Josephine, a widow and grandmother, had purchased the independent living flat with extra care options in 2018 following a hip injury that made her previous home unsafe. The family was initially satisfied with the accommodation and the care provided. However, after Josephine’s death at age 89, the inherited property has become a financial burden for the Redmans.
The monthly service charges on the flat now approach £800, and the family has accumulated approximately £30,000 in debts related to these fees, payable upon the flat’s eventual sale. In addition, they continue to cover council tax and electricity standing charges, despite the property remaining vacant.
Cathy Redman stated that despite reducing the asking price from the original purchase price of £145,000 to under £100,000, they have received little interest from potential buyers. According to the family and the estate agent involved, high service charges are the primary factor deterring prospective purchasers.
Independent living extra care properties, also referred to as assisted living, are designed to allow older adults to maintain a degree of independence while having access to 24/7 care services. However, the Redmans believe the current model faces systemic problems. They criticize restrictions on resale and the inability to sublet vacant flats, which leave families liable for significant ongoing costs without generating income.
Sue Phillips, founder of Shared Ownership Resources, highlighted the wider issue: bereaved families often struggle to sell inherited older persons shared ownership (OPSO) homes, causing both financial hardship and emotional strain. Phillips recommended that housing providers be required to repurchase unsold retirement homes after a set period, or alternatively, permit leasing to eligible older residents, options frequently restricted by current lease agreements.
Anchor, the organisation managing the Slough development, acknowledged the challenges faced by the Redman family and others in similar situations. A spokesperson said the organisation supports leaseholders by maintaining transparency in the sales process and offering marketing assistance. They emphasized that service charges reflect direct costs such as insurance and communal utilities, which have increased due to inflation and rising premiums.
The spokesperson also noted that service charges remain payable until the property is sold, as outlined clearly in lease agreements. While Anchor does not have a general buy-back policy, it has chosen not to pursue outstanding charges on flats for sale and engages with families to explore possible solutions.
The issue underscores the complex realities faced by many families inheriting retirement properties, raising questions about the sustainability of current housing models and the support available to those inheriting such homes.