Should you sell or let your Chelsea, Fulham, Kensington property and move into a later living residence?
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Over the last few years there’s been an increase in luxury later living residences appearing across the globe. From Thailand to the UK, these residences offer a retirement lifestyle that is reminiscent of private luxury clubs, 24 hours a day. Each establishment offers a unique take on how to care for their residents, putting each individual’s needs as a high priority and offering premium amenities. With options available across the country, more of those reaching retirement age are considering if this is an investment option they would like to be a part of. Evaluating if this is the best option for you involves many aspects, here are the main things you’ll want to know about these places and what to consider.
What is a later-living London residence?
A later living residence is a high-end housing option designed specifically for those of retirement age who want a luxurious and comfortable lifestyle. These communities offer upscale amenities, services and living environments similar to those found in exclusive resorts, luxury hotels or private members clubs.
What can you expect from a luxury later living residence?
Luxury later living residences often feature stylish and well-appointed homes including spacious apartments with balconies or patios, providing residents with ample living space and scenic views. More than just this, they have many high-end amenities that bring increased appeal. From dining to fitness, they create a community of like minded people enjoying their retirement. With support from qualified care professionals, on site facilities to accommodate a variety of needs make them a comfortable and relaxing place to call home.
- Stylish homes in desirable locations
- Buy or rent options
- On-site restaurants
- Fitness facilities – gyms, personal trainers, group fitness, wellness programs
- Spas – massage therapy, hair salons, swimming pools
- Recreational activities – art classes, performances, films
- Concierge services
- Care and support services
- Other people in the same life stage
Luxury later-living residences offer a range of living options tailored to specific needs. Independent living caters to those who desire independence while benefiting from on-site amenities. Assisted living provides support with daily tasks, memory care offers specialised services in secure environments with tailored programming. Skilled nursing care delivers comprehensive medical and rehabilitation services by licensed healthcare professionals. These communities often feature a continuum of care, enabling seamless transitions between levels of assistance as residents’ needs change over time.
What are the differences between a Later Living Residence and a Private Residence for retirement?
Remaining in a private residence over moving to a luxury living residence is a big decision for most. Here you’ll find the choices individuals face when considering their living arrangements as they enter their retirement years. Specifically, we examine the unique features and offerings of the retirement residences against the pros and cons of remaining in the local area.
What is the lifestyle like in a Later Living Residence?
Living in a Luxury Living Residence, you’ll receive 24/7 on site support. This is independent living with the assurance of round-the-clock support for emergencies or whenever assistance is required. Residents also enjoy domestic help with cleaning, laundry, transportation, prescription collection and shopping. Social activities organised by the site’s team create resident focused experiences that encourage companionship and community engagement by fostering new friendships with a sense of community. For personal care needs, these residences cater to individuals with low care needs, providing assistance with day-to-day tasks such as dressing, washing, medication management and hoisting. They can also help facilitate needs of those with higher requirements by having external sources of support come in.
- Meet other people on the same life stage
- Events tailored to your passions or interests
- Make new friendships
- 24/7 On Site Support
- Domestic Help
- Companionship
- Personal Care
What are the costs of living in a later living residence?
There are a variety of costs that come with becoming a later living resident from choosing to purchase or rent the property to other additional fees that come with the privilege of living in this type of accommodation setup. This is a breakdown of expected costs, sharing the different average prices depending on the size of the property and whether rent or purchasing outright. Prices may vary from individual to individual, depending on lifestyle choices and final location decisions.
| Average Cost to Buy or Rent a Later Living Residence | |||
| Amount of Rooms | Sq/ft | To Rent pm) | To Buy |
| 1 bedroom | 700 – 900 sq/ft | £14,500 – £18,650 | £970,000 – £2,750,000 |
| 2 bedroom | 900 – 1,500 sq/ft | £14,400 – £24,000 | £1,350,000 – £3,995,000 |
| 3 bedroom | 1,400 – 3,400 sq/ft | £22,400 – | £2,225,000 – £4,675,000 |
| Other yearly costs in a Later Living Residence | |
| Parking/Storage | £2,000 – £5,000 |
| Council Tax | £1,000 – £3,000 |
| Additional Nursing Care | Pricing varies |
| Monthly Membership Fee | £1,200 – £2,000 |
| Total additional yearly cost | £17,400 – £32,000 (+ any additional health care) |
What is the lifestyle like to retire in a private residence in London?
Those already within the city know that depending on the location, London can be both a tranquil and vibrant location to retire in. From exploring historic landmarks, dining at renowned eateries or enjoying its array of recreational activities, London provides an experience that caters to varied tastes and preferences. There are also plenty of green spaces ideal for relaxing or outdoor pursuits as well as prestigious clubs and sports facilities to be a part of. For cultural experiences, there are many landmarks and annual events to engage in conversations with like minded community members. Another draw to the city is the shopping experience catering to diverse tastes and preferences from vintage enthusiasts, to boutique and designer lovers. It is also a food lover paradise with markets and michelin star restaurants available as part of the abundance of amenities.
Living in a private residence for retirement offers:
- Independence
- City living
- Neighbourhood community
- Familiarity of space and location
- Complete control
What are the costs of living privately during retirement in London?
Assuming you already own the property you plan to retire in and have made the necessary accommodations for ageing comfortably, you can expect certain standard living costs. These expenses are likely familiar to you, appearing monthly or yearly. The most significant considerations for future-proofing your home for retirement include making improvements to enhance ease of living and performing general home repairs for ongoing upkeep.
| Average yearly costs in a Private Home | |
| Council Tax/Utility Costs | £1,600 – £5,500 |
| Buildings/Contents Insurance | £200 – £500 |
| Service Charges | £800 – £7,000 |
| Average Ground Rent | £500 – £800 |
| TV, broadband and phone bills | £600 – £1,000 |
| Home repairs and maintenance costs | 1% – 4% of property value |
| Parking Permits | £0 – £120 |
| Health Care/Insurance | £2,000 – £4,000 |
| Average yearly cost total: | £5,700 – £18,920 (excluding any home repairs or updates) |
How much could you sell or rent your private property for?
Those considering making the move to a Later Living Residence will be looking at whether they should sell their current property or let this property to help with higher living costs of renting or financing the cost of purchasing an apartment. This shows the average rental and sold price of properties in London’s prime boroughs.
| Average Property Rental Price and Sold Price in 2023 | ||
| Location | Average Rent (pm) | Average Sold Price |
| Chelsea | £5,040 | £2,290,000 |
| Fulham | £3,346 | £1,230,000 |
| Kensington | £5,905 | £2,150,00 |
| Notting Hill | £4,248 | £1,990,000 |
Cost Comparison: Later Living Retirement Property vs Private London Property
Purchase and Rent Comparison
Both purchasing and renting a Later Living Retirement Property comes with a significantly higher price tag then remaining a private owner within the city. However, they come with amenities that would be priced bespoke if sought after in a private manner included in this price and without any upkeep or renovation costs to accommodate this life transition. These tables provide a comparison between the size of the property and the purchase price and rental price.
| To Buy: Costs and Sizes | ||
| Later Living Retirement Property | Private London Property | |
| 1 bedroom (700 – 900 sq/ft) | £970,000 – £2,750,000 | £250,000 – £3,000,000 |
| 2 bedroom (900 – 1,500 sq/ft) | £1,350,000 – £3,995,000 | £300,000 – £3,400,000 |
| 3 bedroom (1,400 – 3,400 sq/ft) | £2,225,000 – £4,675,000 | £345,000 – £4,500,000 |
| To Let: Property Costs and Sizes | ||
| Later Living Retirement Property | Private London Property | |
| 1 bedroom (700 – 900 sq/ft) | £14,500 – £18,650 | £2,717 |
| 2 bedroom (900 – 1,500 sq/ft) | £14,400 – £24,000 | £3,956 |
| 3 bedroom (1,400 – 3,400 sq/ft) | £22,400 – £54,000 | £6,240 |
Living Cost Comparison
Whilst there are additional costs that come with living in a Later Living Residence, some costs won’t apply to all residents. As the below table outlines, storage and parking are both costs that private residents might not include in their general costs, but they might not be needed by everyone in Later Living Residencies. The below shares an average of what some residents might pay, but these costs aren’t required for all residents. The largest cost and difference between Later Living Residence and continuing to live privately being the service charges and the home repair or maintenance costs.
| Living Costs: Later Living Residence vs Private Retirement Property | ||||
|---|---|---|---|---|
| Later Living Residence | Private Retirement Property | |||
| Storage | £2,000 – £5,000 | £0 | ||
| Ground Rent | £0 | £200 – £500 | ||
| Average Buildings/Contents Insurance | £0 – £500 | £200 – £500 | ||
| Home repairs and maintenance costs | £0 | 1% – 4% of property value | ||
| Parking | £2,000 – £3,000 | £0 – £150 | ||
| Council Tax | £2,000 – £3,000 | £800 – £3,000 | ||
| Service Charges | £15,000 – £25,000 | £800 – £7,000 | ||
| Health care | £0 – £4,000 | £900 – £4,000 | ||
| Utilities and Other Bills | £500 – £1,000 | £600 – £2,700 | ||
| Total: | £21,500 – £41,500 | £3,500 – £17,800 | ||
*Repair/maintenance/renovation costs are excluded from the total
Pros and Cons of Later Living Retirement Homes vs. Private Homes
Deciding whether to sell your home and move into a later living residence or to stay in your private residence as you retire is a huge decision that depends on personal preferences, financial considerations and lifestyle needs.
Pros and Cons of Later Living Residence
A luxury later living residence offers a resort-like experience with numerous high end amenities. They cater to different levels of care, from independent living to skilled nursing care, ensuring a personalised support as your needs change. The sense of community, safety and accessibility are significant benefits, along with the peace of mind knowing that assistance is readily available. However, these advantages come at a high cost, both for the property itself and the associated fees, which can be substantial.
Advantages:
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Pros and Cons Private Homes
Staying in your home offers the comfort of a familiar environment, full control over your space and potentially lower living costs depending on your mortgage situation and the upkeep required. London offers a vibrant retirement lifestyle with its rich cultural experiences, green spaces and dining options. However, living independently can lead to feelings of isolation and homes may not be as accessible or safe as purpose built retirement communities. You would also need to manage maintenance and possibly arrange for external services as needed.
Advantages
| Disadvantages:
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Conclusion
In conclusion, the choice between a luxury later living residence and remaining in a private residence depends on your priorities. If you value community, convenience and comprehensive care with the financial capacity to support this lifestyle, a luxury later living residence might be the best fit. If you prefer independence, familiarity and potentially lower costs, staying in your private residence could be more appealing. It’s important to carefully weigh the pros and cons of each option in the context of your personal circumstances to make the best decision for your retirement years.
Should you be considering selling your home to move into a Later Living Residence, you can get in touch to get a complimentary valuation to understand more about your current financial position.
