A growing number of older Britons are turning their backs on costly retirement apartments in the UK and looking instead to Spain, where property prices can be lower, day-to-day spending stretches further and resort-style amenities come as part of the package.
For many British expats, life on the Costa Blanca is proving far more appealing than putting savings into UK assisted living developments, some of which have faced criticism for high fees, poor resale prospects and the risk of becoming a financial burden.
Instead of buying into retirement housing that could drain their nest egg, pensioners are choosing more affordable, retirement-friendly homes in Spain, often with access to swimming pools, libraries, transport links and round-the-clock emergency medical support.
One example is Ciudad Patricia, a 24-acre retirement village set amid landscaped parkland in the hills above Benidorm, where apartments are available to buy for about £200,000.
Sheila Morris, 87, relocated there with her partner Howard, 85, in 2018, purchasing an apartment for roughly 320,000 euros — around £274,000 at today’s exchange rate.
Prices at the development can begin at around 240,000 euros, or approximately £205,000, for a 65-year-old buyer, with the initial cost reduced by 3,500 euros — about £3,000 — for each year of age up to 80, creating a potential maximum discount of £45,000.
The couple also pay an annual service charge of just over 5,000 euros, equivalent to about £4,550, which covers water, building insurance, upkeep, security, social activities and a 24-hour medical emergency response service.
Sheila Morris, 87, moved to the Spanish retirement complex with her partner Howard, 85, in 2018 after buying a flat for around 320,000 euros, equal to about £274,000 at current exchange rates
Ciudad Patricia: The retirement community occupies 100,000 square metres of landscaped parkland in the hills above Benidorm
Residents enjoy four large outside swimming pools in the Spanish sun – plus an indoor one
The pair had initially bought a home in Sagra, a village about nine miles inland, after meeting at Stratford-upon-Avon racecourse. Each had been widowed for about a decade. But they outgrew the tiny rural village after 12 years.
Howard said: ‘It’s nice to have your own property. But if one or both of you can no longer drive and the nearest supermarket is five kilometres away, you’ve got a big problem. There was one bus a day.’
Ciudad Patricia, on the other hand, has an on-site restaurant, library, gym, pétanque court, bingo and organised excursions, as well as a bus service into Benidorm.
‘We’re perfectly happy,’ says Sheila. ‘There’s something happening every day, although you don’t have to join in.
‘Sometimes you can feel as if you’re the only people here because the peace and silence are wonderful.’
The way in which the community buys and sells homes is the complete antithesis of the nightmare British families face when it comes to dealing with retirement homes.
As the Mail has reported, new-build retirement flats in the UK plunge in value after being purchased from new because of ludicrous service charges.
Often, grieving families who struggle to move the properties on are forced to take a loss and watch their loved ones’ estate vanish into the coffers of the firms managing the facilities.
One family who spoke to the Mail revealed they saw no proceeds from the sale of their father’s flat, purchased in 2008, after the freeholder had deducted thousands of pounds in unpaid fees. Another flat bought for £174,000 plunged 95 per cent in value.
At Ciudad Patricia, a different and much simpler arrangement is in place: when the occupant dies, the flat returns to the management, and their family may receive part of the original payment back.
‘You pay for the property and that’s the end,’ Sheila said. ‘There’s nothing to pass on to your family. It’s yours until you die.’
The amount returned is dependent on the resident’s age, and how long they have been there – meaning it is not impossible that nothing is paid back.
There is a restaurant, library, gym, pétanque, snooker, dancing, bingo and organised excursions. A public bus stops outside reception approximately every 30 minutes and runs into Benidorm
Residents can enjoy the facilities – but do not acquire a home that can be sold or left to their children
But the upfront cost is much lower than in Britain now, where residential care can cost almost £2,000 a week and new-build retirement flats can be several hundred thousand pounds – or split into shared ownership.
At Newlands of Stow in the Cotswolds, one currently advertised two-bedroom flat costs £450,000, with annual service charges and ground rent totalling more than £6,300. Personal care, nursing, meals, housekeeping and individual transport are charged separately.
When that apartment is eventually sold, the operator receives a transfer fee of up to 7.5 per cent of its gross value – £33,750 if it sells for the original £450,000.
McCarthy Stone is advertising shared ownership two-bed properties in Telford, Shropshire for as much as £147,500 upfront, with £339 of rent paid each month on top. And that’s before service charges are levied.
McCarthy Stone also takes 1 per cent of the purchase price in the event of the property being resold.
Ciudad Patricia’s costs offer a striking contrast with premium British retirement developments.
But the Russells believe that, within a decade, they will have broken even compared with renting at an equivalent community in nearby Santa Pola, which would have cost almost 40,000 Euros (£34,000) a year for a comparable property.
Plus, there’s the small matter of the on-call medics: last year, Mr Howard collapsed whilst on a walk near Ciudad Patricia.
Staff summoned an ambulance which took him to hospital, where he was diagnosed as needing a pacemaker. He was home within a fortnight.
‘The health service in this country is considerably better than the country we left,’ said Mrs Russell, who has also received a mastectomy and knee and hip treatment in Spain.
However, the move is complicated by Brexit. About 70 per cent of Ciudad Patricia’s residents already lived in Spain before moving to the resort.
For those looking to make the move from the UK, the facility refers clients to immigration specialists. Alison Eaves, who advises prospective residents, says that is the real service Ciudad Patricia sells.
‘Residents never have to find a Spanish workman, deal with a Spanish document or telephone anyone in Spanish — even for something as simple as calling a taxi,’ she says.
‘You’re not coming here for the apartment. You’re coming for friends to have coffee with, someone who speaks your language, the doctor on call and all the things I would want for my own parents.’
The greatest attraction for the Russells is not financial, climatic or medical. It is knowing that whichever of them lives longer will not be left alone in an isolated house.
‘One person is eventually going to be left on their own,’ says Howard. ‘Here, you’ve got a built-in support network when that happens.
‘The survivor will definitely stay here. There’s no intention of going back to the UK.’
Would they make the same decision again?
‘Yes,’ he says. ‘In a heartbeat.’
