Exit Fees For Retirement Flat Owners Are Likely to Be Unfair, Says OFT

The Office of Fair Trading, which has been investigating exit fees in the retirement leasehold sector, has said that the charges  were likely to be in breach of the Unfair Terms in Consumer Contracts Regulations 1999 (the UTCCRs). Also known as transfer fees, the charge is incurred by the flat owner at the time of sale.  Fairhold, a major player in retirement homes sector, disagrees with the OFT’s view, but has provided undertakings to them that they will change how they charge and enforce transfer fee terms in their 53,000 retirement home leases, as well as some other lease terms. The outcome, which closes the case against Fairhold, falls short of an outright abolishment of exit fees, which is what pressure group, the Campaign for Retirement Leasehold Exploitation (CARLEX) had called for.