SELLING your retirement home
Made simple with
Contents
This seller’s guide is designed to give you an insight into the level of service and commitment you can expect to receive by entrusting us to sell your retirement property. We’ll always make every effort to ensure your sale is as stress free as possible.
3 It’s simple with Home Group 5 Enjoy a stress-free sale 7 Peace of mind 9 How do you sell? 11 Leasehold Scheme for the Elderly 15 The sales process 19 Restrictions on selling 21 Preparing your home for sale 23 Costs 2 | Good living for later life
To find out more call us on 0845 230 2074
It’s simple with Home Group When it comes to selling property, most of us might think that going through an estate agent is the only route to market. Not so. Home Group’s leasehold retirement in-house sales and marketing team has been selling retirement properties across East Anglia and the South East for over 25 years. Clients turn to us for our specialist experience and understanding of the
Or visit us online at www.homegroup.org.uk/retirement
retirement market and the prominent position we hold within the communities we serve. From start to finish the leasehold retirement team looks after you and your interests, from giving tips on preparing your home for sale through to handing over the keys upon sales completion.
Good living for later life | 3
4 | Good living for later life
To find out more call us on 0845 230 2074
A successful sale is easy when you put your trust in Home Group We believe that with the right help, buying and selling a home can be a secure and stress-free process. That’s why our friendly, experienced and highly trained executives do everything they can to make it as simple and straightforward as possible. We’ve gone to great lengths to get to know our local communities, forming relationships with older persons’ service providers, supporting agencies and those planning their retirement, and we hold a subscribers list of people potentially looking to buy a retirement home. To us every property and sale is individual so we create an eye-catching property portfolio tailored just for you and your home. All photographs and details of your property portfolio will be placed on the topranking UK property websites and listings. We’re extremely proactive in promoting properties for sale and marketing them to the right audience. As well as mailing, emailing and text-messaging the prospective buyers on our subscribers list we share property release details with local agencies and service providers for older people and run national and local press and radio advertisements to reach
Or visit us online at www.homegroup.org.uk/retirement
an even bigger audience – all to make sales smoother, easier and swifter for you. Benefits of selling with Home Group: l Comprehensive internet marketing campaigns, publicity via the Home Group website, leading UK property sales websites, and email campaigns l Individual, eye-catching property portfolio l Highly trained, experienced staff with local expertise l Offer-check procedure for complete peace of mind and confirmation of your buyer’s position l Excellent customer service l Regular feedback and advice l In-house legal team
Good living for later life | 5
6 | Good living for later life
To find out more call us on 0845 230 2074
For your peace of mind Our service includes everything you need to make sure your selling process is as easy as possible. Over time, our solid marketing expertise has built an enviable reputation in attracting eligible buyers. You can be assured that our team will describe and explain every aspect of Home Group’s independent living developments to prospective purchasers. Our service includes: l Receiving and validating enquiries from prospective buyers l Arranging appointments to view l Conducting comprehensive viewings of your property as well as a tour of our communal facilities and amenities l A detailed explanation of our services and associated activities l An explanation of the service providing an overview of the service charge and obligations under the lease
Or visit us online at www.homegroup.org.uk/retirement
l Making sure that prospective buyers are offer-checked and ready to proceed with the purchase l Conduct an interview with the prospective buyers l Liaise with prospective buyers’ GPs to confirm their health and well-being as being suitable for independent living l An instruction to our in-house solicitor to support the conveyance and completion of the transaction l Progression of sale from reservation to completion by Home Group’s sales team We’ll keep you informed throughout this process, so you can just sit back, relax and let us do the work for you.
Good living for later life | 7
8 | Good living for later life
To find out more call us on 0845 230 2074
How do you sell? Vendors should complete and return an Instruction to Market form, along with the supporting evidence documentation and details as required. Before formally notifying Home Group of your intention to proceed with the sale it is best to select your solicitor. You may wish to use the solicitor who originally dealt with the purchase as they are likely to have records regarding your property details. You may also require a solicitor to deal with the legal work associated with the estate through a Grant of Probate and/or Power of Attorney to support and enable the sale of the property. Please note: selling a home in England and Wales requires an Energy Performance Certificate (EPC). You can obtain an EPC from a local provider, or Home Group can order one on your behalf. l You can instruct Home Group to market your property solely for you. This way you know that the people being contacted are age-qualified, meet the defined independent living criteria and have come through our renowned targeted marketing campaigns
l Owners of a property on a Private Scheme for the Elderly (PSE) can either solely or jointly instruct Home Group, or solely instruct an estate agent of your choice (subject to the terms under your lease) to market your property. Any fees charged by the agent would be negotiated by you l If you own less than 100% of your property on a Leasehold Scheme for the Elderly (LSE), under the terms of your lease, you must instruct Home Group to solely market your property for you in the first instance** NB: An estate agent will charge a negotiated rate for their services. Our charge is a percentage, as set out in your lease, of the sale price achieved. This percentage is only payable if the eventual purchaser buys your property as a direct result of our efforts.
**Under the terms of your lease a valuation must be carried out by an independent FRICS or RICS qualified surveyor to determine the current open market value of your property, and this will be the fixed price the property will be marketed at. As the vendor the valuation costs incurred in connection with the selling of your property will be yours. (Please see LSE valuations.)
Or visit us online at www.homegroup.org.uk/retirement
Good living for later life | 9
10 | Good living for later life
To find out more call us on 0845 230 2074
Leasehold Scheme for the Elderly (LSE) If you’ve bought your home under the Leasehold Scheme for the Elderly there are a few things you might have to consider. A reminder: what is LSE? The scheme is designed to provide affordable and manageable properties for older or retired people. Under the scheme you pay a percentage (usually 70%) of the value of the property. You don’t pay any rent to Home Group for the remaining share that you haven’t personally bought. However, you do have to pay for all service charges. The percentage you haven’t purchased is a ‘payment discount’ and is locked into your property. This means that whoever buys it from you will benefit from the discount as well, when the property is sold. Selling your LSE property A valuation report is required when selling an LSE property (where you own less than 100%). Under the terms of the lease a valuation must be carried out by an independent FRICS or RICS qualified surveyor to determine the current open market value of your property, and this will be the price the property will be marketed at. You have the option to instruct your own surveyor. If so, the report must: l Be undertaken by an independent FRICS or RICS qualified valuer
Or visit us online at www.homegroup.org.uk/retirement
l Include photographs of the internal rooms l Provide imperial and metric room dimensions l Provide comparisons with similar properties in the area l Provide a sales price and the 100% market value The valuation is valid for a period of three months from the date your property is inspected. It’s therefore imperative that you complete and return the paperwork quickly to enable us to start marketing your home. Once the report is issued we will do all we can to ensure a buyer is found before the valuation report expires. If a buyer cannot be found by this date you may incur additional costs for further valuation updates. Please note the surveyor’s decision on the valuation is final. If you decide to proceed with the sale, the price at which your home is marketed will be fixed and based on the valuation. Home Group’s sales team can recommend qualified surveyors and instruct them to carry out the required valuation report. Again, any valuation report costs are borne by you.
Good living for later life | 11
12 | Good living for later life
To find out more call us on 0845 230 2074
Lease extensions How do you extend your lease? If your property is held on assignable lease that is running low on its remaining years and you’d like to increase the appeal of your property before you sell, we’ll help you extend your lease by another 90 years on top of your remaining term. You can place a request for further guidance on lease extensions and the steps involved.
Or visit us online at www.homegroup.org.uk/retirement
Contact details: Legal Services Home Group 2 Gosforth Park Way, Gosforth Business Park Newcastle upon Tyne, NE12 8ET Telephone: 0845 155 1234
Good living for later life | 13
14 | Good living for later life
To find out more call us on 0845 230 2074
Simple steps to selling Step 1: Appoint a solicitor You may wish to use the solicitor who originally dealt with the purchase and/ or has experience with retirement living leases. We find this helps the process run smoothly. It’s also important that you obtain evidence of your legal entitlement to deal with the sale of the property and provide this to us. Step 2: Let us know In this booklet you’ll find an Instruction to Market form and the costs sheet for selling your property. If you wish us to act it is a requirement that you sign the form, provide documented evidence of your entitlement to sell and agree to the terms set out to sell the property. Then return it to us, as an official instruction for us and formal notification of your intention to sell your property.
Or visit us online at www.homegroup.org.uk/retirement
Step 3: Arrange for an Energy Performance Certificate (EPC) This is required for all properties being sold in England and Wales before marketing can commence. And to make it easier, we can order an EPC report on your behalf. You are responsible for the cost. The energy rating is used in the promotion of your home. Step 4: Valuation – Only required if your home is an LSE / shared equity home ownership property Under the terms of the lease, where you own less than 100% a valuation must be carried out by an independent FRICS or RICS qualified surveyor to determine the current open market value of your property. This then fixes the price the property will be marketed at.
Good living for later life | 15
16 | Good living for later life
To find out more call us on 0845 230 2074
Simple steps to selling Step 5: Preparing your property details We promote each of our properties through a number of channels and strive to highlight, accentuate and market each property’s best features. Your property will be promoted through direct mail, text message and email details to people looking for properties in your area who are registered with us and our partners. To ensure the best results we’ll also list the property on the UK’s leading property sales websites and may also include your property details in a variety of local and national press and radio advertisements. We then focus all our energies on getting
Or visit us online at www.homegroup.org.uk/retirement
as many interested buyers as possible to view your property. This, together with our advertising links with older persons service agencies and comprehensive marketing, allows us to offer a quality service and ability to capture the interest of those buyers who may not have otherwise have viewed. On receipt of the Instruction to Market form, along with all supporting documentation set out within, we will create bespoke sales particulars in print and online and commence marketing within as little as five days of receipt.
Good living for later life | 17
18 | Good living for later life
To find out more call us on 0845 230 2074
Are there any restrictions on selling? l All leaseholders/legally entitled persons should sign an Instruction to Market form and agree to the terms set out to sell the property l Sellers of LSE/shared equity properties must have a valuation carried out by an independent FRICS or RICS qualified valuer. The seller is required to pay for a valuation for three months; if the property has not been sold within this time a further valuation may be needed after this time l The seller is responsible for the cost and, unless they instruct us to do so, the ordering of an EPC is required before marketing can commence l The Home Group marketing agreement has a sixteen-week period in which to market your property and find a buyer, starting five days from receiving the Instruction to Market form, specified supporting documentation and access to the property for promotional images l You will be kept informed on the sales activity, viewings and any feedback received from prospective buyers with advice based on the same
l You will be formally notified of all offers from prospective buyers who meet the criteria. At this stage you will be required to confirm acceptance of the offer prior to us approving the buyer and legally instructing the sale l All potential purchasers must attend an interview with your developments’ scheme manager or a Home Group representative and be vetted on their suitability to purchase and meet the requirements of the lease. They will also be assessed against the Independent Living** criteria and, if appropriate, required to produce financial details, otherwise we cannot offer them the opportunity to buy. Once these checks are completed the applicant’s GP will be consulted as to whether their patient meets our independent living criteria. If so, their application will be approved by the Home Group Sales Team and all parties will be advised accordingly l The legal process usually takes 6-12 weeks. When a date for completion is agreed, you will need to organise the handover of keys with the buyer. This usually takes place at the property and should be arranged by solicitors
** ‘Independent Living’ means owning your own home, in a purpose built development, that on a daily basis you are capable of maintaining; managing your own financial affairs, day-to-day living needs and are sufficiently mobile to live independently within the property and able to evacuate the building unassisted in the event of a fire, capable of using communal areas and joining in the activities and events on offer without assistance. Please note: as part of our standard application process we will seek confirmation of a buyer’s medical status from their GP.
Or visit us online at www.homegroup.org.uk/retirement
Good living for later life | 19
20 | Good living for later life
To find out more call us on 0845 230 2074
Preparing your home for sale We all know that first impressions count, so it’s important to make sure your home is looking its best for each viewing. It’s the little things that can make a big difference too. Here are a few tips to help you: l Clean or replace stained carpets l Fix leaky taps l Bleach and/or replace dingy grout l Freshen up and redecorate l Banish smoke or foul odours l Give your home a good tidy – this will make it seem roomier
l Make it feel homely. Air freshener or fresh flowers will do the trick l De-personalise. Put away personal items like family photos. Buyers may be a little put off if they see a space that you’ve made your home – they’re looking for one that they can make theirs
l Regularly open the windows to let fresh air in
Or visit us online at www.homegroup.org.uk/retirement
Good living for later life | 21
22 | Good living for later life
To find out more call us on 0845 230 2074
Costs The costs of selling your home will vary according to its value and the terms of your lease. 1. Sinking fund A sinking fund is the name given to a longterm savings account that homeowners contribute to in order to fund major works that are required over a period of time, such as painting of communal areas, lift repairs or replacement windows. Leaseholders’ contributions can either be collected as a percentage of the sales price – as per the lease – payable upon sales completion or it can be collected through the monthly service charge. 2. Resale fee If Home Group finds a buyer there will be a resale fee, which is a percentage of the sales price plus VAT, payable upon completion as per the terms of your lease. Please see enclosed cost sheet. 3. Administration fee A charge of £350.00 plus VAT will be charged for administering the sale. This fee covers the costs of approving the purchaser by way of application, an interview with a Home Group representative and obtaining a medical status report. It also covers the processing
Or visit us online at www.homegroup.org.uk/retirement
of solicitor pre-contract enquiries and the preparation of a completion statement, and includes 3 years’ service charge accounts, building insurance and fire risk assessment information, plus general purchaser/vendor enquiries and administration. 4. Service charge This is the ongoing responsibility of the vendor. Upon notification of completion, the current quarter will be apportioned between vendor and purchaser. 5. Refurbishment costs Any costs incurred by you to place the property in good order prior to sale. 6. Assignment costs (if applicable) Your lease may also contain details of other payments known as legal/transfer fees payable to the landlord. Where these payments apply, these will be detailed individually within your lease and collected at completion. There will be other costs incurred from your solicitor. The costs shown above are those directly related to Home Group South Retirement Leasehold properties.
Good living for later life | 23