Updating post from Reddit.
Long story short we can get a over 60's retirement flat below value
It has 3k service charge a year but has a great location and in great condition
But flipping it or renting out I have no idea because of the fact its over 60's
Any feedback or ideas?
You want to look very closely at the lease, it will restrict who can live there (and sometimes who can own it).
They are often not "below value" its just that is its value, given the small market for a home with that kind of restriction on it. You will also find it hard to finance given these circumstances.
Nevermind the idea that £250 of your rent a month will be going to the superior-landlord.
Unless it is a steal, i'd look at walking away.
I doubt you’ll be allowed to rent it out… check the T&Cs carefully.
These properties tend not to sell quickly, and that service charge doesn’t go away…
And only goes up
My in laws have been trying to sell one of these properties “below market value” for years. Nobody wants to buy them. I’d steer clear.
Managing agents like first port. English for Soprano.
Walk away. Lots of bad press about how retirement homes can become a nightmare.
Here’s just one - https://hoa.org.uk/advice/guides-for-homeowners/i-am-buying/hidden-costs-retirement-properties/
Don’t go near it: it won’t be below market value, will have numerous strings attached and restrictions and you will regret it.
Either find BTL house/flat in the normal sense; or put dosh into good savings.
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Can I ask why you bought the student pods? The service charges are extortionate!
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All's well that ends well...I still don't see why anyone would buy those pods though, there are so many other better options!
Read the lease
Hi all, jumping on this conversation as I'm interested in hearing from people with retirement home stories that may be sitting empty due to not selling - at Action on Empty Homes, we're keen to research this topic. You can take a look at our call out here: https://www.actiononemptyhomes.org/retired-homes
Thanks!