Mayford Grange Q&A

A: Owners of a Retirement Villages lease are required to pay an assignment fee when their property is sold.

When a Retirement Village is developed there are very substantial capital costs creating the central “country club” facilities, including the restaurant, bar, hair salon, kitchens, etc. The assignment fees provide the landlord company with a long term income stream which provides a return on the capital cost of that investment. At the same time, this income stream gives the landlord a common interest with the leaseholders, in ensuring that capital values of properties in the village are maintained and improved.

A common criticism of some retirement housing schemes is that “second hand” properties are difficult to sell because the developer, having made his development profit, has no further interest in the investment performance of the scheme. Retirement Villages Limited develops its villages and owns them in perpetuity. We continue to invest in the up grading and refurbishment of the central facilities and individual units so as to ensure that capital values are maximised.

The level of assignment fee varies. The maximum it will be is 12.5% of the sale value and on some of our older leases it can vary considerably below this percentage level. In all cases, this fee includes the landlord’s solicitors’ costs.

Before proceeding we would advise you to take legal advice to ensure you are fully aware of exactly what the fee would be in respect of the specific property you are considering.

A. The lease for all properties at Mayford Grange will be for a term of 125 years. On leaving the village the lease is assignable to any qualifying person (aged 65 and over).

A. The service charge is £5,260 per annum for each apartment.

These charges will be reviewed in July 2015 and then each year and any changes to the Service Charge will take effect from 1st October 2015. Thereafter any changes will be effective from 1st October in following years. The landlords will contribute the proper proportion of charges due for any unsold properties.

A. At Mayford Grange the service charges have been capped” until 1st October 2015. The service charge is operated on a strictly ‘not for profit’ basis, in accordance with legislation and therefore, future increases will only reflect the actual costs of providing the services It is not possible to give predictions for this but, suffice to say, the company has considerable experience, gained over 20 years of managing its villages, and is very conscious of the need to keep costs under control whilst continuing to give a quality service.

A: Our assisted purchase scheme is where we act as an agent on your behalf, managing the sales process, and helping you to secure a buyer for your property.

A. We insure the buildings and furnishings in the common parts; you only need to insure the contents within your own home.

A. Minor internal alterations and improvements can be made with the Landlord's consent. However, when the lease is assigned, the right is reserved to restore the property to its original condition at the expense of the outgoing tenant.

A. The day to day on site running of the village will be the responsibility of the Management Company to whom the tenants pay their service charges. A representative of the Management Company will attend meetings of the Residents Association Committee meetings where any matters relating to the good management of the village can be discussed.

The Management Company will also provide every resident with a copy of the certified statement of accounts as soon as possible after the end of the financial year.

A. Yes, guest accommodation is available. It comprises a bedroom with TV and limited cooking facilities with an en suite. The charge is £35 per night whether it be single or double occupancy. Please inform the office if any guests are staying.

A. Anyone who is over 65 (or is married to someone over 65). The services and facilities have been designed for people of his age group. Visitors are of course welcome.

A. In addition to the listed facilities there is a Residents’ Association with an elected committee which organises events and social activities, in conjunction with village staff as appropriate.

A. A 24 hour on-call emergency support service is in place in all villages. This is to cover emergencies only.

A. Yes they are. However for obvious reasons it is essential they are well trained and controlled.

A. Limited car parking is available on site on a first come, first served basis. All other reserved spaces can only be used by the resident who has paid for that space.

A. Salaries and national insurance:

Administration – A small team including the Village Manager who is responsible for the supervision and control of the complete on-site management of the village and for arranging any additional care or domiciliary services.

Maintenance:

Employed or contracted staff who are responsible primarily for the upkeep of the communal grounds, buildings and equipment in the village. They will also carry out minor repairs to individual properties, and there will be appropriate arrangements for property emergencies outside normal working hours. Where residents require further assistance i.e. electricians, plumbers etc for major repairs, they are required to pay for this separately.

Maintenance reserve fund:

There is a programme for planned maintenance, together with the replacement of large items of equipment. The reserve fund is designed to allow for these expenditures as and when they occur, thereby reducing the need for large variations to service charges. The fund is also there should unforeseen maintenance items arise.

Communal rates:

The business rates for the office accommodation and all the other central facilities.

Insurance:

A block policy is in place to cover the buildings insurance on each property and on all communal buildings, together with employers and public liability.

Communal energy:

This is the cost of heating, lighting and water to all communal parts of the village. These costs will be partly offset by the use of the Combined Heat and Power unit for the clubhouse and the photovoltaics which reduces the amount of electricity drawn from the Grid. Residents pay these charges separately in respect of their own properties.

Office supplies/telephone:

The costs of running the on-site manager’s office and associated services.

Repairs and maintenance:

The external maintenance: decoration and repair of all properties on the estate including the structure, roofs and foundations. 

Internal maintenance:

Repair and decoration of the clubhouse and other common parts of the estate. The provision of a refuse collection service. The maintenance or replacement where necessary of such plant, machinery, and equipment as required.

Maintenance contracts:

The payment of charges in respect of maintenance and servicing contracts for boilers, lifts, fire alarms, alarm call system and other communal equipment.

Cleaning materials, window cleaning, garden supplies, uniforms, interest and recruitment advertisements

Accountancy/legal:

Auditors costs for the provision of independently certified statements of accounts and any license fees payable. 

Management fee:

The fee payable to the Landlord’s appointed manager, RV Services Ltd, for the provision of services to the on site management company and for overall accountability of providing and monitoring the entire facility.

A. Yes you can have a tailor made package to suit your needs, such as help with bathing, dressing, meals, for example. This would be priced accordingly.

A. The concept of the village is ‘Supported Living in Retirement', and the on-site RV Care Manager will be able to arrange care packages when necessary subject to payment of additional fees to cover the additional cost of the services provided.

If the situation deteriorates and independence diminishes to the point where permanent care is needed, then inevitably the resident themselves or their relatives will recognise that appropriate care arrangements need to be made.

In the very rare circumstances of this not being recognised, and bearing in mind the best interests of other residents, the staff, and the resident themselves, then there is a covenant in the lease where the Landlord may give notice. It should be stressed that this is the very last resort and it is hoped, that matters such as this, be dealt with in a sensible and sympathetic manner by all parties.

here a couple are occupying a property and one of them becomes unable to look after themselves, there is no need for alternative arrangements to be made, as long as the other party remains able to cope, with the assistance of outside agencies.

A. Yes, for emergencies, including Christmas and New Year.

A. As part of the assignment fee payable when the property changes ownership. Retirement Villages Limited takes responsibility for procuring the sale of the property and paying the fees as the agent normally therefore all of this will be taken care of for you but there is nothing to prevent you or your executor making different arrangements if you wish.

A. Yes, if you prefer to eat in your own homes, arrangements can be made for meals to be delivered to you from the restaurant kitchens.

A. There is a small kiosk which sells essentials and seasonal goods.

A. This can be provided by RV Care as part of their optional and flexible care services which are available to all residents. A full list of all the services available, together with charges, can be provided on request.