Anchor, a not-for-profit provider of sheltered housing is in the firing line. The spotlight here is its policy on selling an older person’s retirement flat in Leominster, Herefordshire. The sister-in-law of a late husband bought the apartment in 2004 for £59,995. Today, it is worth an average of about £40,000. This is a deeply troubling state of affairs. In his case, his sister-in-law, who has dementia and has only recently moved into full-time care, relies on the proceeds from that home sale to continue her care.
The property deeds entitle Anchor to 2% of the original purchase price. This premium is paid upon sale of the flat. That adds up to a total of nearly £25,000. That’s an incredible 63% of the average anticipated sales proceeds. The company euphemistically refers to this fee as a “deferred service charge.” Second, it seeks to establish a dedicated sinking fund to cover future maintenance expenses. Furthermore, the sister in law is charged an annual service charge of £2,856 for maintenance of the complex.
This has outraged housing advocates. Paula Higgins, chief executive of HomeOwners Alliance, said she was dubious of Anchor’s financial incentives.
“It is deeply concerning.” – Paula Higgins, chief executive of HomeOwners Alliance
Higgins, which is that developers sometimes pocket a third to half of the resale price. He said Anchor’s choice to structure its fees around the original purchase price is especially strange and potentially a financial burden for residents. This simple model has the potential to tremendous help people, persons like your sister-in-law. As she suffers under the financial strain of her health care needs.
Transparency in these contracts is key. Vulnerable populations rely on these properties as homes to lay their roots. As Anchor sticks to its guns and enforces its discriminatory policies, the stakes for residents and families are high. The sister-in-law’s case exemplifies the challenges faced by many in similar circumstances, raising questions about fairness and transparency in housing agreements.