Latest news with #retirementhomes
CBC
02-06-2025
- Business
- CBC
Alberta developer faces Consumer Protection Act charges over return of life lease fees
Social Sharing The head of an Edmonton property development company that owes hundreds of seniors money from life lease contracts is now facing charges under Alberta's Consumer Protection Act. Court records show that Greg Christenson, president of Christenson Group of Companies, has been charged with two counts of failing to return a life lease entrance fee within 180 days — alleged violations of new rules introduced in Alberta last year. According to court information, the charges stem from alleged failure to return two people's life lease fees between roughly the beginning of 2025 and the end of April. The life lease model is often used for seniors' housing. It sees residents pay a large lump sum upfront, plus monthly operating costs, to occupy a unit for the remainder of their life. If they die or they have to move out, their initial investment is returned, minus a percentage that the housing operator uses to refurbish the unit. As of the end of 2024, the Christenson Group, which owns nine retirement homes in Edmonton and central Alberta that previously offered life leases, had yet to repay more than 200 seniors or the family members now managing their estates. Christenson was charged May 7 "for allegedly failing to repay two private loans," lawyers Ian Mahood and William Kenny told CBC News in a statement. "These charges are without merit. At all times, Mr. Christenson has abided by all relevant and applicable laws," the statement says. "Mr. Christenson looks forward to clearing his name in court, and further looks forward to defending his contracts under which the monies in question were lent." Alberta's changes to life-lease rules Some of the former retirement residents in Christenson Group buildings have been waiting three years or more for hundreds of thousands of dollars they put toward a life-lease unit. The company owed about $75 million, in total, by the end of 2024. People are waiting because the Christenson Group's life-lease contracts include a provision for a repayment queue that kicks in if more than six per cent of the life lease holders in a building terminate their lease at the same time. It's a common feature of this type of housing agreement, but experts say the lengthy wait for the return of so many entrance fees is an outlier across the country. The provincial government brought life leases under the jurisdiction of the Consumer Protection Act last year, setting approximately six months as the time limit for life lease operators to repay former residents. Potential penalties for offences under the act include fines up to $300,000 or as much as two years in jail. The rules apply only to contracts terminated after the legislation took effect in mid-2024, and don't cover anyone who entered a life lease queue before that, even if they have been waiting longer than six months. Christenson has previously told CBC the root of the long queues is the COVID-19 pandemic, which hit seniors' care and housing hard, and prevented his company from moving in new life lease residents for a long period of time. He has said the company intends to repay everyone, and they're working on a remortgaging plan, with a new rental-only model, to make that possible. The company is not offering any new life leases, but there are still many residents who live in life-lease units, and will be expecting the return of their entrance fee when they terminate their contracts. A group of current and former life lease residents, as well as their family members, are advocating for a solution through a non-profit, the Alberta Life Lease Protection Society.
Telegraph
26-05-2025
- Business
- Telegraph
Labour accused of ‘shameful neglect' of retirement home owners
Labour has been accused of 'shameful neglect' of grieving families hit by double council tax bills on retirement homes they have inherited. Kevin Hollinrake, the shadow housing minister, criticised the Government for refusing to conduct an impact assessment of the second home council tax raid on retirement developments. Such properties can only be occupied by owners over the age of 55 and come with high service charges, making them difficult to sell. It comes after The Telegraph heard from dozens of owners who had been hit with four-figure bills from their local council on the homes they had inherited. Mr Hollinrake said: 'Those hit by this tax grab are often still grieving the loss of a loved one. Yet heartless Labour ministers show no understanding – or concern – for the emotional and financial strain this imposes. 'They haven't even bothered to carry out an impact assessment. That's a shameful neglect of duty on what is effectively a stealth death tax. 'From the start, Labour's handling of this policy has been careless, clumsy, and callous.' Mr Hollinrake last week submitted a question in Parliament asking the Government whether it would assess the impact of the second home premium on retirement homes. But Jim McMahon, Labour minister for local government and English devolution, said it was the responsibility of councils to consider the local impact. Retirement flats are leasehold properties for the over-55s, which have become notoriously difficult to sell thanks to the age restrictions and high service charges. As of 2019, there were 730,000 retirement housing units in the UK, according to the Elderly Accommodation Counsel. However, in recent years, their appeal has dramatically waned due to their hefty service charges, which are payable whether or not the property is lived in. When an owner dies, their immediate family is forced to foot the bill while the home is on the market. This issue is being compounded by the council tax raid. One 66-year-old reader has been paying £6,000 a year in service charges since 2020, as her mother's retirement flat sits on the market. She has now been hit with a £10,000 double council tax bill. From April 1, all local authorities in England were given the powers to charge 100pc council tax premiums on second homes in their region. The Telegraph is calling for the premium to be abolished or reduced. Dennis Reed, of charity Silver Voices, said: 'The refusal even to consider mitigating measures to prevent hard-to-sell retirement flats from being penalised is another example of how low pensioners are on the Government's policy priority list. 'Such flats are clearly not second homes and this misinterpretation must be outlawed.' A spokesman for the Ministry for Housing, Communities and Local Government said: 'We will consult on detailed plans to drive up transparency of service charges and hold landlords to account. 'It is for councils to decide whether to introduce a council tax premium and assess the local impact.'
Yahoo
18-05-2025
- Business
- Yahoo
‘No one will buy my mum's retirement flat despite a £100k price cut'
For three years, Jeff Clarke has paid £900 a month in service charges for a retirement flat he does not occupy. The property belonged to his 95-year-old mother, Dora, who left it vacant when she moved into a care home. Finding a buyer is proving difficult, but keeping on top of the service charges is nigh-on impossible. Now, he is being forced to sell his own home to keep up with the charges and his mother's care fees. Mr Clarke, 71, from Windsor, is one of dozens of readers who have complained of sky-high fees on their retirement homes – leasehold properties designed for the over-55s. Labour is facing fresh criticism for failing to 'get a grip on this scandal' and delaying reform of the sector. The Leasehold Reform Act 2024, introduced by the Tories but pioneered by the current Government, has promised an overhaul to service charges and banned developers from selling new houses as leasehold properties. But it notably exempted retirement homes from the proposed ban – a loophole Labour has failed to close. Campaigners said it amounted to yet another betrayal of pensioners after 10 million retirees were stripped of winter fuel payments. And families like Mr Clarke's have been feeling as though they have a 'millstone around [their] neck.' Dora first moved into Lynwood retirement village in Ascot in 2017 when the service charges were just £518 a month. Five years later, her health seriously deteriorated and she was forced into a care home. In that time, her service charges also rocketed by 73pc. It means her son is paying for both her service charge and an extra £1,000 towards the care fees. The Lynwood flat was put on the market for £350,000, the price it was originally bought for, but the price has since been cut to £250,000. Even so, it has had just seven viewings in three years. Mr Clarke cannot turn the electricity off at the property in case it is needed for a viewing. As a result, he claimed he has to pay an extra £20 a month for the standing charge. To make matters worse, last week, he was invoiced £96 for a new energy performance certificate, which he said 'rubs salt in the wound'. He now plans to downsize from his current home. The decision was in part due to the service charges, but also a serious accident which reduced his mobility. The situation is even more catastrophic for Dora, whose investment in the flat has evaporated. He said: 'My mother now has nothing. She doesn't have a penny to her name.' Lynwood Village is run by automotive charity, Ben. Small print in the contract means that once Mr Clarke does manage to sell the property, he will have to pay the provider 1pc of the sale price for every year the flat was owned. Rachel Clift, chief executive of Ben, said property prices at Lynwood Village are 'stable and sales are steady', but acknowledged it can take a while for properties to sell in this 'niche sector and difficult market'. She added: 'We are sorry to hear about the challenges that this individual has experienced. We are fully committed to providing a supportive community, and we would be happy to speak with this individual directly to explore what else we can do to help.' Retirement homes are leasehold properties, usually with leases of between 125 and 999 years, and are specifically designed for over-55s. They boomed in popularity during the 1980s and remained attractive well into the early 2000s. As of 2019, there were 730,000 retirement housing units in the UK, according to the Elderly Accommodation Counsel. However, in recent years, their appeal has dramatically waned as complaints mounted among those early buyers. This is due to their hefty service charges, which are payable whether or not the property is lived in. Owners must also pay ground rent, generally between £400 and £500 per year. Ground rent has since been banned on the sale of new retirement homes but this does not apply to re-sales. The issue has been compounded by the double council tax raid on second home owners which has swept up the families inheriting these properties. The Leasehold Reform Act 2024 was brought in by the previous Conservative government to strengthen leaseholder rights. It aimed to improve the 'transparency of service charges and give leaseholders a new right to request information about service charges and the management of their building'. But it contained loopholes which allowed developers to sell new houses as leasehold properties, for instance if they are part of a retirement village. Helen Whately, shadow pensions secretary, said: 'This is yet another example of Labour not keeping their word. It's just like when they said they wouldn't remove the winter fuel payment, only to then betray 10 million pensioners the first chance they got. 'With each day it becomes clearer their pre-election promises aren't worth the paper they were written on.' Dennis Reed, of charity Silver Voices, said: 'In some cases, the service charges amount to daylight robbery of vulnerable older people. It is essential that legislation provides a fair framework for such charges. 'Older people are already struggling to cope with rising energy and food prices, cuts to winter fuel payments, poor social care support and large council tax bills, so we need extortionate service charges in retirement flats like a hole in the head. In April 2024, Labour U-turned on its own promise to scrap leaseholds in its first 100 days of power. Instead, it pledged to 'bring the feudal leasehold system to an end' without committing to a timeframe. In March, the Government published the Commonhold White Paper, which will be followed by a draft Leasehold and Commonhold Reform Bill in the second half of this year. Again, retirement homes will not benefit from exemptions and were excluded from the recommendation to ban exit fees. It means owners like Ann Townson will have no protection from soaring costs. The 78-year-old moved into a retirement village in Harrogate. At the time, it seemed like the 'ideal solution' as she struggled with health and mobility issues. However, now she cannot keep up with the service charges and ground rent which cost her £1,047 a month, which has rocketed from £731 when she first moved in four years ago. She said: 'It will use up all my savings as the cost per month takes up more than half of my pension. You have absolutely no control over the costs. 'I would never have moved here if I had known what I know now.' Paula Higgins, of the Homeowners Alliance, said: 'Retirement homes should not be exempt from plans to ban leasehold houses. 'Buyers of these properties often face huge hidden costs. In many cases, it's the children who are left to shoulder these financial burdens after their parents pass away.' A spokesman for the Ministry for Housing, Communities and Local Government said: 'Far too many leaseholders across the country are being asked to pay unreasonable and extortionate charges, including people living in retirement homes. 'We are determined to fix this, which is why we will consult this year on detailed plans to drive up transparency of service charges and hold landlords to account for the money they spend.' Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
Telegraph
18-05-2025
- Business
- Telegraph
Britain's retirement home ‘scandal' is another Labour betrayal of pensioners
For three years, Jeff Clarke has paid £900 a month in service charges for a retirement flat he does not occupy. The property belonged to his 95-year-old mother, Dora, who left it vacant when she moved into a care home. Finding a buyer is proving difficult, but keeping on top of the service charges is nigh-on impossible. Now, he is being forced to sell his own home to keep up with the charges and his mother's care fees. Mr Clarke, 71, from Windsor, is one of dozens of readers who have complained of sky-high fees on their retirement homes – leasehold properties designed for the over-55s. Labour is facing fresh criticism for failing to 'get a grip on this scandal' and delaying reform of the sector. The Leasehold Reform Act 2024, introduced by the Tories but pioneered by the current Government, has promised an overhaul to service charges and banned developers from selling new houses as leasehold properties. But it notably exempted retirement homes from the proposed ban – a loophole Labour has failed to close. Campaigners said it amounted to yet another betrayal of pensioners after 10 million retirees were stripped of winter fuel payments. And families like Mr Clarke's have been feeling as though they have a 'millstone around [their] neck.' Dora first moved into Lynwood retirement village in Ascot in 2017 when the service charges were just £518 a month. Five years later, her health seriously deteriorated and she was forced into a care home. In that time, her service charges also rocketed by 73pc. It means her son is paying for both her service charge and an extra £1,000 towards the care fees. The Lynwood flat was put on the market for £350,000, the price it was originally bought for, but the price has since been cut to £250,000. Even so, it has had just seven viewings in three years. Mr Clarke cannot turn the electricity off at the property in case it is needed for a viewing. As a result, he claimed he has to pay an extra £20 a month for the standing charge. To make matters worse, last week, he was invoiced £96 for a new energy performance certificate, which he said 'rubs salt in the wound'. He now plans to downsize from his current home. The decision was in part due to the service charges, but also a serious accident which reduced his mobility. The situation is even more catastrophic for Dora, whose investment in the flat has evaporated. He said: 'My mother now has nothing. She doesn't have a penny to her name.' Lynwood Village is run by automotive charity, Ben. Small print in the contract means that once Mr Clarke does manage to sell the property, he will have to pay the provider 1pc of the sale price for every year the flat was owned. Rachel Clift, chief executive of Ben, said property prices at Lynwood Village are 'stable and sales are steady', but acknowledged it can take a while for properties to sell in this 'niche sector and difficult market'. She added: 'We are sorry to hear about the challenges that this individual has experienced. We are fully committed to providing a supportive community, and we would be happy to speak with this individual directly to explore what else we can do to help.' Retirement homes are leasehold properties, usually with leases of between 125 and 999 years, and are specifically designed for over-55s. They boomed in popularity during the 1980s and remained attractive well into the early 2000s. As of 2019, there were 730,000 retirement housing units in the UK, according to the Elderly Accommodation Counsel. However, in recent years, their appeal has dramatically waned as complaints mounted among those early buyers. This is due to their hefty service charges, which are payable whether or not the property is lived in. Owners must also pay ground rent, generally between £400 and £500 per year. Ground rent has since been banned on the sale of new retirement homes but this does not apply to re-sales. The issue has been compounded by the double council tax raid on second home owners which has swept up the families inheriting these properties. The Leasehold Reform Act 2024 was brought in by the previous Conservative government to strengthen leaseholder rights. It aimed to improve the 'transparency of service charges and give leaseholders a new right to request information about service charges and the management of their building'. But it contained loopholes which allowed developers to sell new houses as leasehold properties, for instance if they are part of a retirement village. Helen Whately, shadow pensions secretary, said: 'This is yet another example of Labour not keeping their word. It's just like when they said they wouldn't remove the winter fuel payment, only to then betray 10 million pensioners the first chance they got. 'With each day it becomes clearer their pre-election promises aren't worth the paper they were written on.' Dennis Reed, of charity Silver Voices, said: 'In some cases, the service charges amount to daylight robbery of vulnerable older people. It is essential that legislation provides a fair framework for such charges. 'Older people are already struggling to cope with rising energy and food prices, cuts to winter fuel payments, poor social care support and large council tax bills, so we need extortionate service charges in retirement flats like a hole in the head. 'The Government must get a grip on this scandal' In April 2024, Labour U-turned on its own promise to scrap leaseholds in its first 100 days of power. Instead, it pledged to 'bring the feudal leasehold system to an end' without committing to a timeframe. In March, the Government published the Commonhold White Paper, which will be followed by a draft Leasehold and Commonhold Reform Bill in the second half of this year. Again, retirement homes will not benefit from exemptions and were excluded from the recommendation to ban exit fees. It means owners like Ann Townson will have no protection from soaring costs. The 78-year-old moved into a retirement village in Harrogate. At the time, it seemed like the 'ideal solution' as she struggled with health and mobility issues. However, now she cannot keep up with the service charges and ground rent which cost her £1,047 a month, which has rocketed from £731 when she first moved in four years ago. She said: 'It will use up all my savings as the cost per month takes up more than half of my pension. You have absolutely no control over the costs. 'I would never have moved here if I had known what I know now.' Paula Higgins, of the Homeowners Alliance, said: 'Retirement homes should not be exempt from plans to ban leasehold houses. 'Buyers of these properties often face huge hidden costs. In many cases, it's the children who are left to shoulder these financial burdens after their parents pass away.' A spokesman for the Ministry for Housing, Communities and Local Government said: 'Far too many leaseholders across the country are being asked to pay unreasonable and extortionate charges, including people living in retirement homes. 'We are determined to fix this, which is why we will consult this year on detailed plans to drive up transparency of service charges and hold landlords to account for the money they spend.'
Telegraph
15-05-2025
- Business
- Telegraph
Gloria Hunniford cuts ties with controversial retirement home developer
TV star Gloria Hunniford is cutting ties with a leading retirement home provider amid growing scrutiny of the sector. The Rip-Off Britain presenter has confirmed she will no longer work with McCarthy Stone after years of being paid to open new developments. The move comes after an investigation revealed that nearly 60pc of McCarthy Stone flats have significantly fallen in value when re-sold, leaving owners £41,000 worse off on average. McCarthy Stone is one of the country's biggest retirement home developers, with 543 villages housing more than 21,500 people. It has hit headlines in recent years as families struggle to sell on the properties, which can only be purchased by buyers over 60. A spokesman for Mrs Hunniford, 85, told the Times that she 'has no further planned dealings with this company'. She has repeatedly appeared as the guest of honour at McCarthy Stone openings across the country, most recently Bluebell House in Milton Keynes in 2023. At the time, she said it was 'an absolute joy to be a part of the celebrations'. Her appearances also included meet and greets for the guests. An investigation by the Times last month found that one in 50 McCarthy Stone homes have lost more than half their value when resold. The average loss is 16pc for properties built between 2010 and 2019, while the Halifax house price index grew by 42pc over the same period. It comes after The Telegraph heard from dozens of readers who complained their retirement properties were 'impossible to sell' because of their high fees which have become the norm across the industry. As of 2019, there were 730,000 retirement housing units in the UK, according to the Elderly Accommodation Counsel. But in recent years, their appeal has dramatically waned as complaints mounted among those early buyers. This is due to their service charges, which are payable whether or not the property is lived in. One reader has been stuck paying £3,546.96 service charge and £395 ground rent annually since her mother passed away in 2022. The property – which was run by a separate retirement home provider – has sat on the market for three years despite her lowering the price. Owners must also pay ground rent, generally between £400 and £500 per year. Ground rent has since been banned on the sale of new retirement homes but this does not apply to resales. The issue has been compounded by the double council tax raid on second home owners which has swept up the families inheriting these properties. McCarthy Stone told the Times the majority of its flats increase in value once its financial incentives are taken into account, adding its charges are tightly regulated. The company declined to comment further when contacted by The Telegraph.
