Retirement Village Fees Explained: Service Charges, Event Fees and Exit Fees (2026)

In short: in a retirement village you usually pay three kinds of cost: the price of the home, a regular service charge while you live there, and sometimes an "event fee" (often called an exit fee) when you sell or someone new moves in. Event fees are not capped by law. In sample leases the Law Commission looked at, they ranged from 1% to 30%. Ask for every fee in writing before you buy.

The costs at a glance

Most homes in retirement villages and other retirement housing are sold on a lease. Age UK says most assisted living housing is sold on a leasehold basis, and that services and charges vary from scheme to scheme. The costs fall into three stages.

The service charge

Age UK says the service charge typically pays towards communal repairs and cleaning, grounds maintenance, lifts and security systems, and building insurance. It may also cover support services such as the scheme manager and an emergency alarm. What is included varies, so ask for a full breakdown, including optional services and any one-off fees.

Some things are often charged on top. The government's Older People's Housing Taskforce said it may not be clear what is included and what extra charges apply for add-on services such as housekeeping and care. You will also usually pay Council Tax and your own energy bills.

Two points about service charges are easy to miss:

• Fixed or variable. Some retirement leases set a fixed service charge. GOV.UK says you can ask a tribunal to look at a service charge you think is unreasonable, but not if you pay a fixed charge. You can still ask your landlord for a summary of how the charge is worked out and what it is spent on.
• It keeps running after you move out. The taskforce said many residents and families do not realise the service charge (and ground rent, on leases from before April 2023) still has to be paid up to the point of resale, even when the home is empty.

Event fees, exit fees and transfer fees

The Law Commission calls them "event fees". It says they go by many names, including exit fees, transfer fees, deferred management fees, contingency fees and selling service fees, and that the name does not necessarily tell you why the fee is charged or how the money is used.

How much? There is no standard rate. In sample leases studied by the Law Commission, fees ranged from 1% of the purchase price or market value up to 30% of the purchase price. Some were a flat percentage, and some were 1% for each year you lived there. In some leases the owner had to sell the home back to the freeholder at the original price, so they lost any rise in value. The taskforce said fees were historically capped at 10% of the resale price, but this is not always the case, and some can now be as high as 30% after three years.

When is it charged? Usually when you sell. But the Law Commission found some leases also charge when the home is inherited or mortgaged, when a spouse, civil partner or carer moves in, when a resident moves out, or each time the home is sub-let.

Why do they exist? The Law Commission said event fees can keep the monthly service charge lower, because the landlord or operator gets a deferred payment when the home is resold. Industry estimates it saw suggested that, in some cases, the service charge would more than double without an event fee. Some fees go into a sinking fund for repairs. Others are not linked to any service and may be profit for the freeholder.

What the law says in October 2026

• No law limits event fees yet. In 2017 the Law Commission recommended a code of practice to control when event fees can be charged and to make operators disclose them early, rather than a ban. The government said in 2019 it would implement most of the recommendations.
• Clearer information is planned. In July 2026 the government said it will bring in an annual report for leaseholders, with a special version for people who pay a fixed service charge and an event fee. That version will require landlords to set out the event fees being charged. The government said private landlords will get 12 months' notice before the new rules start.
• The Leasehold and Freehold Reform Act 2024 became law in May 2024, but most of it is not yet in force. Its service charge changes are still waiting to start, and it does not mention event fees by name.
• Industry codes. Operators that belong to ARCO (the trade body for retirement communities) follow its Consumer Code, which Trading Standards approved in April 2025. It requires detailed disclosure of event fees and service charges before you sign, and gives a route to The Property Ombudsman if a complaint is not resolved. Not every operator is a member, so ask.

Questions to ask before you buy

• What is the service charge this year, what does it cover, and how has it changed in recent years?
• Is the service charge fixed or variable?
• What extra services, such as care, meals or cleaning, cost on top?
• Is there an event fee? How is it worked out, what triggers it, who receives it, and what does it pay for?
• Can you pay the fee upfront instead? The Law Commission said some operators offer this.
• Is there ground rent, and how long is left on the lease?
• Who must you sell through when you leave, and what does that cost?

Ask a solicitor who knows retirement leases to check the lease before you buy.

Related guides

• Deferred Management Fees: How Much Will You Really Pay?
• Do Retirement Flats Lose Value? What Affects Resale
• How to Sell a Retirement Flat: Options and Realistic Timescales
• Part-Exchange Schemes for Retirement Property: How They Work

Sources

• Event Fees in Retirement Properties, Law Com No 373 (Law Commission, 2017)
• Event fees in retirement properties: project page (Law Commission)
• Our Future Homes: the Older People's Housing Taskforce report (GOV.UK, 2024)
• Government response: strengthening leaseholder protections over charges and services (GOV.UK, July 2026)
• Leasehold property: service charges and other expenses (GOV.UK)
• Leasehold and Freehold Reform Act 2024 (legislation.gov.uk)
• ARCO Consumer Code (Chartered Trading Standards Institute)
• Sheltered housing (Age UK)