Leasehold Scheme for the Elderly

Leasehold Retirement Schemes are provided so that owner occupiers can sell their homes and invest all or part of the money in a home more suited to their future needs and life style.

The Leaseholders of a sheltered retirement scheme are able to live independently in their own homes with the knowledge that help is at hand if and when required. The scheme should not be confused with residential care homes where specialist support is available 24 hours a day.

There are two types of Leasehold retirement properties within our scheme and the basis principles are as follows: -

Leasehold Scheme for the elderly (Ely Place, Trumpington, Cambs)

A government grant reduces the purchase price of the accommodation to 70% of its value which enables owners of more modest homes to purchase sheltered housing for their retirement.

• The property is sold Leasehold: the Freehold remaining with the Society. You will purchase a Leasehold interest amounting to the number of years left on the original lease for 99 years from September 1987. For example if purchaser "A" bought a 99 year Lease in 1987, and you, purchaser "B" are buying in 1997 you will be buying an 89 year lease.
• At the end of your occupation the Lease will revert to Granta. A lease for 99 years from September 1987 will be granted to someone from Granta's waiting list or to someone whom you may wish to nominate. The selling price to the new Leaseholder will be 70% of the current valuation of the property.
• The outgoing occupier will receive the amount paid by the incoming Leaseholder less an amount to cover the Society's incidental expenses and an amount to be added to a sinking fund for major repairs and replacement items. The sinking fund is worked out on the basis of 1% of the purchase price for each year of occupation (or a proportion for each year of occupation). It will be seen that since the amount payable by each succeeding Leaseholder is the sum due to the preceding occupier the society does not profit from any increase in the property value attributable to the percentage of government grant originally received.
• In addition to the above a monthly service charge and an annual ground rent are payable. These are explained in more detail later.

Privately funded Leasehold Schemes for the elderly (Salisbury Place)

These flats are designed and built in the same way as the above scheme but have no 30% subsidy and are sold at full open market value.

• The property is sold Leasehold, the Freehold remaining with the Society. You will purchase a Leasehold interest amounting to the number of years left on the original 99 year Lease. For example if purchaser "A" bought a 99 year Lease in 1986, and you purchaser "B" are buying in 1990 you will be buying a 95 year Lease.
• At the end of your occupation your lease can be sold at 100% of its market value to someone from Granta's waiting list or to someone whom you may wish to nominate.
• The outgoing occupier will receive the amount paid by the incoming Leaseholder less an amount to be added to a sinking fund for major repairs and replacement items. The sinking fund is worked out on the basis of 1% of the purchase price for each year of occupation or a proportion for each partial year of occupation).
• In addition to the above a monthly Service Charge and an annual ground rent are payable. These are explained in more detail below.

What happens in the event of the Leaseholder's death?

The property may be sold as outlined above. The amount payable on surrender of the Lease is paid into the deceased's estate. The Service Charge, sinking fund, and ground rent continue to be due until the date of completion of the sale.

Ely Place and Salisbury Place, Trumpington

Our scheme is situated off Monkswell in Trumpington, two and a half miles from Cambridge City Centre. Local shopping facilities include a Post Office, chemist, baker, butcher, greengrocer, and hairdresser all within easy walking distance. A regular bus service connects into the City centre along the A10 and there is convenient access onto the M11 about one mile away. There is adequate parking available at the site and attractive communal grounds which are maintained by the Society.

1.What does the accommodation comprise?

The scheme comprises 38 flats in five two-storey blocks. There are 10 one-bedroom flats on the first floor and 28 two-bedroom flats on both ground and first floor levels. All flats are purpose built to wheelchair standard, (although it should be noted that no lift is provided), completely self-contained, and built to a high specification.

Ground floor flats have a small patio area to the rear and most first floor flats have a private balcony. A gas fired central heating system is installed within each flat as well as full double-glazing. All mains services are provided and television and telephone cables are laid on. A coin operated laundry with automatic washing machines and dryers is incorporated into the estate as well as a guest room for visiting friends and family. An alarm call system is installed in each flat enabling residents to summon the assistance of the resident warden or mobile wardens in an emergency. A caretaker is employed for cleaning of the common areas, gardening, and external maintenance .

2.What are the warden's duties?

The warden looks after the day to day running of the properties and keeps an unobtrusive eye on the welfare of residents and is ready to answer an emergency call from a resident and call in any medical or welfare assistance needed. The warden's basic function is that of a good neighbour and nursing care of a "home help" type service cannot be expected. Although the warden is resident they cannot be on duty 24 hours a day. Currently the warden works 2 hours a day Monday to Friday. When the warden is off duty, the scheme is linked to the Cambridge City Council Mobile Warden Service which is staffed 24 hours a day throughout the year and can summon assistance or send a local "Mobile Warden" who will be on duty nearby.

The warden is appointed by and answerable to the Society. Further details about the role and duties of the warden are available in the resident's handbook.

3.Am I eligible for a flat?

Resident's must be of at least retirement age, not in full time employment and normally in receipt of a retirement pension. Purchasers can be of any age, (thus a son may buy a flat in which his mother will reside for example). We also expect applicants to have a good reason to live in the area such as current or previous residence or the need to be close to family. Priority will be given to people on Local Authority or Housing Association waiting lists.

All prospective purchasers will be required to complete an application form so that Granta can ensure they are eligible to be considered for future vacancies. Prices for each flat will be determined by a valuer appointed by the Society.

What does the Service Charge cover?

The Society undertakes to manage the Scheme and in return the Lease provides for the payment of a Service Charge. The charge covers all the costs of managing the scheme including a resident warden, centralised 24 hour emergency warden service, buildings insurance, upkeep of the grounds and common areas, maintenance, repair and redecoration of the external fabric of the property and common parts, communal light and heat, and the management costs of the Society. A detailed budget for the current monthly charge payable can be provided on request.

Is the Service Charge independently checked?

The lease provides that at the end of each financial year a qualified accountant will certify the amount of service charge payable for that year. The certificate will give a summary of all the outgoings and a copy will be supplied to residents within 6 months of the financial year-end, i.e. the end of September each year.

Is there a ground rent?

Yes. The ground rent currently payable is £25.00 per annum and falls for payment in advance on 1st January each year.

What other outgoings will there be?

The other outgoings common to all owner-occupiers, are:

• Council Tax
• Water Rates
• Power, heating and lighting to the individual property
• Internal decoration, repairs, and maintenance
• Telephone bill

Is a Solicitor necessary?

The Society would advise prospective purchasers to instruct a solicitor to deal with this type of transaction.

Can a mortgage loan be obtained?

Many Building Societies provide special lending facilities for retired people and the Leasehold interest can be used as security for a mortgage.

Frequently Asked Questions

Pets cannot be introduced into the scheme without the prior written consent of the Society.

Certain alterations or improvements are permitted provided the prior consent of the Society has been given.

For further information please contact Granta Housing Society on 01223 576756

^^ Back to top