Fees & Charges Explained

As proud members of the Associated Retirement Community Operators (ARCO), we are committed to their consumer code and all it entails. We want our homeowners to understand our pricing structure from the outset. This is designed to be clear, transparent and fair.

1. Management Service Charge – Overview

Bridge House of Twyford is the Management Company that operates Bridge Park on behalf of the Landlord Hurstlane Ltd, and for residents. In so doing it incurs costs to maintain, repair, staff and insure shared areas including the communal lounge, the residential building fabric, roads, services and gardens. The costs are reviewed on 1st April every year to reflect the changes in the cost of delivering the services, but any increases are based solely on changes in actual costs. Hence the service charge is a “variable charge”. These costs are collated each year in Audited Accounts and levied back to residents in equal shares via Service Charges in accordance with the Lease. Should there be any interruption to services, alternative arrangements will be made. The Provisional Service Charge is chargeable weekly and collected in advance, each quarter. The service charge is made up of the following:

Property

• Routine maintenance to the exterior of buildings
• External cleaning of windows and gutters and internal cleaning of communal areas
• Building’s insurance. (Note residents must insure their own contents.)

Communal facilities

• Heating, lighting, maintenance, laundry and housekeeping services of all communal areas
• Light refreshments for Advisory Meetings served in the lounge.
• Not all residents attend Supper Clubs and any external events, these are conducted on a user-charge basis.

Communal Gardens & Estate Management

• Garden and grounds maintenance of the estate and building exteriors and communal areas, including provision of maintenance & gardening staff, equipment and sundries
• Refuse management and the operation and maintenance of all external lighting

Care & Support

• Supply and maintenance of emergency call bell system in each property
• On-site care staff providing 24-hour monitoring & response to emergency call bells
• An initial health and well-being assessment is included. 2
• Support and liaison with appropriate medical professionals and/or agencies

Social Events & Activities Management through Concierge Services

• Provision of a daily Concierge service to oversee care and wellbeing and to coordinate, facilitate and organise social events

Transport

• Use of chauffeur and car for weekly group outings
• The car and driver are also available for private trips by appointment – fees and charges apply.

In addition to these services, the management service charge also covers costs associated with:

Management & Administration

• Reception and booking services
• Advice regarding site services, including care
• General administration and IT support
• Staff coordination and planned maintenance
• Quarterly meetings, minutes, correspondence and disbursements
• Costs associated with providing the above, including accountancy, book-keeping, bank charges and audit certification

Provisional Service Charge arrangements

Each year in March, the costs for delivering the above services are produced, audited and issued to residents. Residents are invited to ask questions, and if required, one-on-one meetings with residents, family, or their financial adviser could be arranged with the management team to discuss the accounts in more detail.

At the end of each accounting period, a Provisional Service Charge Budget is established on 1st April at the start of each Service Charge Year. The charge is calculated based on the previous year’s actual costs, plus an allowance for inflation and any known expenditure not previously accounted for. When audited actual costs are finalised for the previous year, the total cost is reconciled with the Provisional Service Charge collections. Surpluses are carried forward into the next year’s budget, while shortfalls are invoiced to residents. We will provide at least 28 days’ notice of the new charge.

A Reserve or Sinking Fund is maintained for larger maintenance projects, which are planned in advance. Bridge Park of Twyford employs some of the staff, but it does not have a financial interest in any other firm involved in providing services or receive an incentive or commission from third-party suppliers relating to any of the services paid for by residents through the service charge.

Reserve or Sinking Fund

Your management Service Charge covers regular on-going costs of running and maintaining Bridge Park. However, from time to time, more extensive repairs and maintenance will be required.

To reduce the burden of these major repairs on owners, Bridge House of Twyford builds up a reserve or sinking fund over time, which allows it to manage all significant repairs to the exterior of the properties and the structure. The fund is topped up annually, from the annual Service Charge. This provides you with the reassurance that if any substantial maintenance work is required for the buildings or grounds, then the work can be funded, completed professionally, and in a timely fashion.

From time-to-time professional surveyors carry out regular site inspections to determine future capital investment needs. A rolling capital investment programme is in place to ensure that the properties are always safe and maintained in good condition. If the reserve fund cannot meet the cost of works, the shortfall will be collected via an addition to the service charge. The Reserve Fund is held on trust for residents as required by the Landlord and Tenant Act 1987.

2. Leasehold Properties & Ground Rent

All properties sold through Bridge House of Twyford are on 125-year assignable leases. The original date was 2015.

Advantages for homeowners of this leasehold arrangement include:

• Knowing that the overall site will be managed and the lifestyle, care and support services provided will be maintained to a consistently high standard
• On-going property and maintenance services to all communal areas and grounds will be managed professionally
• The Lease is a legal document that clearly details the responsibilities of Hurstlane Ltd (the Freeholder), Bridge House of Twyford, (the Manager), and you, (the lessee). Your solicitor will advise you on the contents of the Lease.
• Subject to your Lease, there is Ground Rent payable annually for all properties where the original Leases were issued prior to April 2023. The Ground Rent is reviewed every five years as set out in your lease.

Ground Rents are currently under governmental review which may result in a change in future, notwithstanding the provisions of the Lease. When these changes come into effect, the Ground Rent will be adjusted in line with current legislation when introduced.

3. Property Transfer Fee on Resale of Property

When you buy a retirement property the price can differ from the freehold market value. This is because there is a Transfer Fee (also known as a Deferred Management Fee (DMF) which is a charge that is not paid upfront but instead becomes payable when your property is resold.

Your lease includes a provision for a Transfer Fee payment to the Landlord, Hurstlane Ltd, by the Vendor. This payment is calculated as a percentage of the price at which your property is sold or its market value and varies according to how long you have owned the property.

How it works

The Transfer Fee is calculated as a percentage of the resale price, accruing over the years you live in the property. This structure allows the Landlord to offer homes at a more accessible entry price, making retirement living achievable for more people.

The figure is 10% of the property value but is reduced to 8% if you have owned the property for up to two years and further reduced to 6% if you have owned the property for less than one year. This Fee should not be confused with the Management Service Charge (referred to above), which covers the cost of providing services and generally managing the village on a day-to-day basis.

The benefits of the Transfer Fee

By deferring this cost to the point of sale, you benefit in several important ways:

• Lower entry cost — you pay less to move in, preserving your capital and financial flexibility.
• Funding a high-quality community — the Transfer Fee reflects the exceptional living environment made possible by the Landlord’s significant investment in land, buildings, and equipment, which together create a comfortable, well-managed retirement community. The payment provides the Landlord with a return on its capital investment over the lifetime of the development, without which, the facilities could not continue to be provided.
• Marketing support with resales – we offer support for property resales, through our estate agency partners. The Transfer Fee payment covers the costs incurred in selling and marketing properties through our relationship with Knight Frank, but it does not include your solicitors’ fees which remain your responsibility. Should you wish to use another agent as well as Knight Frank, you are at liberty to do so, but you will be liable for their fees, and there is no credit available as Knight Frank will continue to be involved.
• Aligned interests — because the Transfer Fee is tied to the resale value, the Landlord is motivated to maintain and improve the property and community, supporting the long-term value of your home.

The Transfer Fee (or DMF) is a well-established model in retirement living, designed to balance affordability at the point of entry with the sustainable funding needed to deliver a high-quality community over the long term.

In Summary, the Property Transfer Fee covers:

1. A return for the original capital invested and the provision of any future major upgrades if and when required.

2. Marketing support and agency fees payable to Knight Frank.

3. Legal and other administrative costs incurred by Hurstlane Ltd and Bridge House of Twyford.

Worked example of the Transfer fee

Example 1: Owner sells for a gross selling price of say £515,000 and moves away.

Length of ownership: Up to 1 year | Percentage: 6% of £515,000 | Transfer fee payable: £30,900

Length of ownership: 1 to 2 years | Percentage: 8% of £515,000 | Transfer fee payable: £41,200

Length of ownership: 2 years and above | Percentage: 10% of £515,000 | Transfer fee payable: £51,500

Internal Transfers

If an Owner elects to sell their Demised Premises at Bridge Park and simultaneously purchase another property in the same retirement village for a lower purchase price, then the payments referred to above shall be calculated as the relevant percentage (depending on the length of stay), but using the difference between the sale price of the Demised Premises sold, and the purchase price paid for the replacement dwelling.

Example 2 Simultaneous Internal Sale and Purchase Only: Assuming a Sale of a property for £515,000 and purchase of a property for £450,000, so the difference is £65,000, then the Transfer Fee payable is calculated as follows:

Length of ownership: Up to 1 year | Percentage: 6% of £65,000 | Transfer fee payable: £3,900

Length of ownership: 1 to 2 years | Percentage: 8% of £65,000 | Transfer fee payable: £5,200

Length of ownership: 2 years and above | Percentage: 10% of £65,000 | Transfer fee payable: £6,500

For the avoidance of doubt if the purchase price paid for the replacement dwelling is equal to or more than the sale price achieved for the demised premises being sold, then there will be no transfer fee payable

Actual selling prices may differ from the examples. Property prices may go up or down and vary between properties. We can provide illustrations for other scenarios.

Interim Transfer Fee

The Transfer Fee outlined above is as set out in the Lease but contemplates the level of amenity to be delivered across Phase 1 & 2. However, as Phase 2 has not yet been delivered Hurstlane Ltd and Bridge Park of Twyford have capped the Transfer Fee at 6% for Phase 1 Residents only, regardless of the length of time they have been in occupation. This arrangement will cease as soon as the first of the Phase 2 facilities (limited to the Restaurant) are delivered. For the avoidance of doubt after that date, Transfer Fees will be payable as set out in the Lease and the Interim Transfer Fee will be discontinued, and further there will be no Pro Rata adjustment for Phase 1 Leaseholders.

Assisted Living Package (Optional)

For those who choose the extra reassurance, care and support of our assisted living services, Bridge Park will tailor a bespoke package, at an additional cost that could include one, or all of the following:

• Provision of a healthy three-course meal daily, professionally prepared, by our chef
• Laundry service
• Regular Housekeeping (Assistance with your house/apartment cleaning) and laundry services
• Personal care
• Monthly well-being assessments
• Additional transport if required

Needs will vary and we will tailor a package that suits you.

To Note

As the property you live in is owned by you, you will still be responsible for the water and energy bills associated with your home, as well as the council tax, home contents insurance and TV license fee.