A 92-year-old woman from Geraldton has become the face of a growing controversy in Australia’s retirement village sector after paying an eye-watering $184,000 for a unit she never got to live in.
Barbara Allen, a retired nurse living with Parkinson’s disease, had been seeking more independence after experiencing a decline in her health. Despite concerns from her family about signs of dementia, she decided to move into Harbour Pines, a coastal retirement village marketed as offering “beachside living at its best.”
However, her stay lasted just one night.
In February 2023, Barbara paid $184,000 towards a $260,000 unit under a “lease-for-life” agreement, a contract that allows residents to live in a property without ever owning it. Under this arrangement, land titles remain with the village operator, and residents must pay exit and other fees when they leave.
Unfortunately, Barbara’s independence was short-lived. On her first day in the unit, she suffered a fall that left her hospitalised. She never returned to the property and was formally diagnosed with dementia three months later. She passed away in June 2024 without receiving a refund of any portion of her lease payment.
Barbara’s son, Trevor Allen, is now in a legal battle with the retirement village’s operator, Adder Holdings. He has lodged a statement of claim in the District Court of Western Australia, alleging that the company acted unconscionably by signing his mother up for the lease when she was in declining health.
“They’ve got you over a barrel,” Mr Allen said. “But they’re not going to run over me.”
Adder Holdings has denied any wrongdoing, stating that Barbara had full capacity to enter into the agreement at the time of signing. However, her family argues that her advanced age, health conditions, and cognitive decline should have been considered before allowing her to commit to such a significant financial arrangement.
Barbara’s case is not an isolated incident. Several Harbour Pines residents have raised concerns about high fees, unclear contracts, and unexplained charges. Some residents claim they did not realise they would never own the units they had paid for, while others are struggling to retrieve funds after leaving the village.
One resident, who refused to pay additional fees not outlined in her contract, was pursued in court by Adder Holdings while she was in palliative care. After her passing, her estate was left with less than half of what she originally paid for her unit due to fees and deductions.
Lawyers representing affected residents argue that these practices exploit elderly Australians who may not fully understand the complexities of lease-for-life agreements.
Cases like Barbara’s highlight the urgent need for greater transparency and consumer protection in the retirement village sector. Advocates are calling for stronger regulations to prevent unfair financial losses for elderly residents and their families.
For Barbara’s son, the fight is personal. “My mother deserved better,” he said. “People shouldn’t have to go through this at the end of their lives.”
This is a ludicrous situation and should not be allowed to continue. Reform to stop this must happen NOW not when they feel like it.