Families inheriting retirement properties are facing a "national scandal" as service charges, exit fees and double council tax erode their value, leaving many with a fraction of the original worth.

Rosemary Daley-Frank has branded retirement homes a "national disgrace" after she and her two sisters will receive just £10,000 each from their mother's flat.

The property, once valued at £219,000, has been sold for just £85,000 after five years on the market.

Daley-Frank's mother, Mari, purchased the retirement property in Chippenham, Wiltshire, in 2014 and lived there until her death at age 92 in September 2020.

The property is managed by Methodist Housing Association (MHA), which operates around 65 retirement living schemes across the UK.

Mari paid £6,000 annually in service charges for amenities including a swimming pool, gym, cinema, cleaner and gardener.

Families left with just £10,000 each after selling £219,000 retirement property

"The estate agent deserves champagne," Daley-Frank told Telegraph Money, after the prolonged struggle to sell.

She said: "Mum died having set up a petition to reduce this cost. The residents were battling to bring it down as the service for which they paid was not to a good standard."

The financial burden on families inheriting retirement properties is substantial, with average monthly service charges of £523.99 according to retirement company Lottie.

These charges typically cover a site manager and sometimes 24-hour staffing, and must be paid whether the property is occupied or not.

Owners also face ground rent of between £400 and £500 per year, though this has been banned on new retirement homes but not resales.

Around 494,541 older people are still burdened with paying monthly mortgage paymentsGETTY

Exit fees average 12 per cent of the sale price according to the Leasehold Knowledge Partnership, with some reaching as high as 35 per cent. And providers often charge exit fees of 12 per cent of the sale price on average, according to the Leasehold Knowledge Partnership. Some are as high as 35 per cent.

Daley-Frank's family will owe £8,000 to MHA from the sale, £32,000 in unpaid service charges, and £10,000 in council tax.

The issue has been exacerbated by the double council tax on second homes, which has caught families inheriting retirement properties.

Many are forced to pay four-figure bills until the properties sell, which can take years in the current market. This tax burden comes at a time when families are already struggling with ongoing service charges and maintenance fees.

As a result, the retirement housing market has cooled significantly, with less than one per cent of over-65s living in retirement homes in the UK, according to the Government's Older People's Housing Taskforce.

Campaigners warn that retirement home providers entice buyers with "uniformed sales staff and highly practised marketing

Campaigners warn that retirement home providers entice buyers with "uniformed sales staff and highly practised marketing," presenting villages as "homely" and "supportive."

Dennis Reed of charity Silver Voices said: "The sheen can soon come off these complexes as the service charges and social care charges build up and wear and tear sets in."

Paula Higgins from the Homeowners Alliance highlighted the struggle families face: "We frequently hear of families struggling to sell unless they significantly reduce the asking price."

Sebastian O'Kelly of the Leasehold Knowledge Partnership added: "The main downside of retirement flats is usually experienced by the children who inherit it."

MHA apologised for the family's struggle to sell the property, stating: "MHA is a charity and all of our surplus is re-invested into our life enhancing services for older people."