Joanne Hanson, regional head of housing at the care company, said it made the decision as the buildings require "extensive works.... to suit the needs of older residents".
She added no one will be required to move out, while the council has confirmed it will take on the properties as affordable housing.
Ms Hanson said: “We have a long history of working closely with Harrogate Borough Council to provide good quality retirement housing, providing valued services to residents and the local community.
“We regularly review all of our locations looking at financial viability, the investment required and the needs of current and potential customers, both now and in the future.
"After carrying out a review of this nature here, we have identified that extensive works are required to modernise these properties to suit the needs of older residents.
"Our priority is the welfare of our residents and we will be working closely with the council to effect a smooth transition."
The leases have been in place since the 1980s and are worth £6,000 per year for all three buildings.
The retirement homes range from nine to six bedrooms which are rented out by people over the age of 55 who receive different levels of care.
The council said it was happy to take the buildings back into its own stock and that the residents will become "secure tenants of the council".
By Jacob Webster, Local Democracy Reporter