More people each year are turning to specialist retirement
homes. Typically, a resident will purchase a long lease for a
capital sum but these long leases can also require the owner to pay
"event fees" when certain events occur. These events will
typically include sales, lettings and changes in occupancy of the
home and are usually paid after the homeowner leaves the
property.
These fees can come as a surprise to leaseholders and in March
2017, following consultation, the Law Commission published a report
on event fees in retirement homes. Now, over two years later, the
government has confirmed that it intends to implement most of the
Law Commission's recommendations. The two recommendations which
the government wishes to explore further are: how best to establish
an online database to provide information to prospective buyers;
and succession rights for spouses and live-in carers to stay at a
property, without payment of an event fee.
