This will make you smile.

As you consider your retirement options you’ll be doing your research to ensure you make the right long term decision, as you’ll want to feel happy and settled. Right now, a Rental model has never looked so good.

At this stage in your life financial certainty is paramount, and you’ll want to feel safe and secure in the knowledge that you are in control of your money and your assets.

Property purchase maintains the valued position of home ownership, but as many of the retirement property options are leasehold as opposed to freehold, there is very little difference to a rental model. The difference though is in the costs, some of which can be less than obvious.

Purchase prices can be higher than the general market and you may only be able to sell back to the developer or freeholder, at their valuation. ‘Exit’ fees from such developments can range from 5% to over 25% of either the original purchase price or the sell back value; add in stamp duty and legal costs and there is a significant premium for a purchase. This is money you and your family will never get back.

Most leasehold purchases also carry ground rent, service charges and maintenance costs – month in, month out. You didn’t pay these when you bought your family home, so why pay them on your retirement property?

The Hawthorns Eastbourne.

In contrast the all-inclusive Rental model offers certainty, easy planning, and flexibility. There are no property repairs, gardening costs, utility bills, Council Tax, internet charges, weekly housekeeping and bedlinen laundry, or transport costs on days out in the private minibus. There are three restaurant meals a day and refreshments throughout, plus daily entertainment.

If you prefer a different outlook or you wish to downsize from a two-bed to a one-bed apartment there’s no sales fees, purchase costs, or delays; you just move and pay the new monthly rent. Property purchase won’t give you that.

The financial and freehold ownership arguments are clear, so it’s a matter of individual choice. Look for clarity and a solution with no small print that gives you the cost-free ability to change your mind at any time.

The Hawthorns Braintree Retirement Village, Essesx

We have thriving Hawthorns retirement communities in Braintree Essex, Aldridge West Midlands, Eastbourne East Sussex and Clevedon Somerset with other communities in development in Northampton. Call 01323 640088.

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