As with any property purchase one has to first consider the purchase price of the property, which will normally be a leasehold, bound to conditions required by the company managing the development and or providing the care. There will be service charge to cover the facilities provided and finally the cost of the specific care that the buyer is going to be require (less any benefits which may be available to cover that care)

The cost of running the estate will of course fall on the residents in the form of a service charge. This cost will include buildings insurance, buildings and road maintenance, and staff costs. It will in fact cover all the cost of running the estate not of course forgetting the costs of the manager together with his profit. Many leases will be for 99 years or more. They are unlikely to be shorter for a new property. As there will be some expenditure, for example replacing the clubhouse furniture or resurfacing a roadway which will be required to be made at some time in the future and which existing residents are now having the use of, so then existing residents ought to bear a part of that future replacement expense. They will do so by making a contribution to a sinking fund.

The cost of that contribution will be part of the service charge expenditure. In this manner each resident fairly pays his contribution to the communal facilities. The service charge can be a substantial part of the cost of living in an estate like this and it is not something to be overlooked.

Ascertain from the outset what the tariff will be for the anticipated care levels required and also make sure you check benefit entitlements that will offset the cost of this care.