Recent media stories about our sector have raised important questions about the different types of retirement properties available in the UK. You may have seen reports on BBC News and other national media about service charges of £10,000 to £20,000 a year, families unable to sell inherited flats, and people left paying thousands in fees on properties that stand empty.
These are concerns we take very seriously. We want to explain what makes Churchill Living developments different, and the steps we’ve taken to protect our Customers and their families from the issues that have been making headlines.
Service charges
The developments featured in the BBC report and elsewhere had hefty annual service charges of between £10,000 and £20,000, driven by the cost of maintaining extensive on-site facilities and staffing levels for extras such as restaurants, swimming pools, extra care provision, and large landscaped grounds. One development featured was a converted Grade 1 listed building, and others were assisted living or extra care developments, which typically have much higher service charges.
Churchill developments are fundamentally different to this type of property. Because we do not build elaborate and ultimately expensive facilities that Owners must then pay to maintain, our service charges are a fraction of those featured in the headlines. All of our developments are traditionally constructed and newly built, we do not do conversions.
Our average service charges across new selling Churchill developments are currently less than £3,100 a year for a one bedroom apartment and £4,500 a year for a two bedroom apartment.
These charges cover building insurance, maintenance and repair services, window cleaning, electricity for communal areas, cleaning of the communal areas, gardeners to maintain the beautiful gardens, the Lodge Manager who is there to look after the building and provide peace of mind for family members and Owners, 24-hour Careline support system, renewable energy generation, and all safety and security measures. All these services are there to take the burden away from our Owners, giving them and their family members peace of mind to know that the grounds and developments are maintained to the highest standards.
As well as being much lower, our service charges are always fully transparent and a full breakdown is provided. Each year, a detailed budget is prepared and presented to Owners, with actual costs reviewed and any adjustments discussed openly, so there are no surprises.
Importantly, for those who inherit a Churchill property, service charges can be deferred whilst a property is being marketed, so they are only payable once a sale or rental has been achieved.
No exit fee
Some retirement developers charge a significant exit fee when an apartment is sold. This can be as high as 30% of the sale price, meaning an Owner or their family could lose tens of thousands of pounds when they come to sell.
Churchill Living has no exit fees. When you sell your property, the proceeds are yours.
Resales support
Churchill has one of the most comprehensive packages in place to support Owners or their families when the property is no longer needed.
Our specialist in-house agency, Churchill Sales & Lettings, is available to help Owners resell or rent their property
Service charges can be deferred on unoccupied properties being marketed, so they are only payable once a sale or rental has been achieved
Refurbishment packages are available to bring a property back to prime condition for resale, something we would strongly recommend
Renting out your apartment
Some of the recent coverage involved families who could not sell a retirement property but were still liable for ongoing service charges, council tax and ground rent. A key frustration in some of these cases is a lease restriction that prevents the property from being rented instead of sold.
At Churchill there are no restrictions preventing you from renting the property should you wish, and our in-house team at Churchill Sales & Letting can help with this. We have an extensive database and a very strong track record of achieving good rental values in a short space of time, meaning that you can retain the asset whilst receiving an income to pay for any ongoing service charges and to leave you with some capital income.
What to look for when considering any retirement living property
If you have been put off by what you have read in the media, we would ask you not to let the problems of very different developments stop you from exploring whether a move with Churchill Living could genuinely improve your quality of life.
Whether you are considering a Churchill Living apartment or any other options, we would encourage you to ask the following questions before making a decision:
What is the annual service charge, and what does it cover? Ask for a full breakdown, look at how charges have changed over the past three to five years if the development is established, and compare them with your current bills/outgoings on your existing home.
Is there a ground rent? If so, how much and can it increase?
Is there an exit fee? If so, how is it calculated and when is it payable?
Can the property be rented? Check the lease carefully for any restrictions on subletting.
What happens if the property is unoccupied? Are service charges still payable in full, or is there a deferral arrangement?
What support is available if you want to sell? Is there an in-house resales service or are you on your own?
At Churchill Living, we are happy to answer every one of these questions openly and in detail.
Our business is built on trust and integrity, providing independence, peace of mind and a simpler way of living for our Customers and their families. This is the Living Value you could enjoy every day with Churchill Living.