McCarthy Stone is proud to be one of the few retirement companies not to charge exit fees, having removed them in new schemes in 2009. We do not charge exit fees that come back to the developer as profit. We charge a 1% sinking fund contribution (known as the contingency fee), which is paid on resale.
What are the disadvantages of buying a retirement flat?
Cons
- The purchase price.
- There will be a service charge and ground rent.
- They are frequently leasehold.
- Exit fees.
- Resale value is often far lower.
- Not every retirement property may cater specifically for your needs.
- Sometimes they are just ‘not for you’.
Is it hard to sell a retirement property?
“Retirement homes have always been hard to sell, but in the last year, they have been particularly difficult, if not impossible,” says one agent in Greater London. This makes sales all the more difficult and slow.”
Can you smoke in retirement flats?
Yes, if you own the apartment then smoking is allowed within your apartment, but not within communal areas.
Who is taking over McCarthy and stone?
Lone Star
Retirement housebuilder McCarthy & Stone is to be taken over by US private equity group Lone Star at the end of today after the £647m bid received its final legal approval.
When did most new build retirement homes fall in value?
For those properties which declined in value, the average loss was 17%. For some, the falls are much steeper. The EAC found that for new build retirement properties sold between 2005 and 2007, and then resold between 2012 and 2014, more than four fifths fell in value.
How does McCarthy and stone increase the value of retirement homes?
The company also said it had worked hard to increase resale values in recent years, including extending leases, retaining management of developments, and providing sales support. “The vast majority of our retirement apartments increase in value on resale”, McCarthy and Stone told the BBC in a statement.
Who are the largest developers of retirement homes?
The largest developer of retirement homes, McCarthy and Stone, told the BBC that the numbers did not include incentives given to the original buyers, which effectively lowers the purchase price.
How many retirement homes are sold at a loss?
Around half of new build retirement homes sold during a 10-year period were later re-sold at a loss, according to exclusive research for the BBC. The research by the Elderly Accommodation Counsel charity found falls in value could be more than 50%.
