In Many congratulations to all who participated in the programme, and to the programme makers. MoneyBox established that the freehold of an average 40-apartment site would sell for around 600,000, or 15,000 per apartment. Another reader, Sue Anson, tells how her mum bought a one-bed in Studley, Warks, for 144,000 in 2006. Sebastian OKelly, of www.BetterRetirementHousing.com, told the programme: How can they possibly have an exemption from the ground rent ban? For other inquiries, Contact Us. In Smiths case, the company that manages the property, FirstPort, refused her request to clear the bills when she sells, and asked for the money upfront. Its been one huge money pit. This is Money is part of the Daily Mail, Mail on Sunday & Metro media group, Get a discount code to save on your internet security, Listen to podcasts and books for less with these offers, Get the ultimate broadband and entertainment bundle, Get great deals on existing and new plans, Have a clean house and save money with these offers, 'Copycat' scams now make up a THIRD of money fraud: Two victims tell us how they were fooled by people pretending to be a bank and a fashion influencer, Are you allowing your bank to rip you off? 2010-05-18 219,950, 7, St. Richards Lodge Even if there's no-one living there. Schroeder, 78, had not violated any party rules, said the committee, confirming a decision in August The valuation kept falling to 99,000, then 89,000, then 69,000, then 59,000. That said dangers lurk ahead. 2011-12-08 209,950, 40, St. Richards Lodge View our online Press Pack. Our ability to buy land will be reduced [if we are not exempted from the ground rent ban] and that will affect supply. Perhaps even more shocking is the council tax bill on Crosss one-bed flat, which has spiralled to 3,000 this year and is heading to 4,500 next year or more than the tax on a multimillion-pound mansion in Mayfair. 2011-11-28 189,950, 23, St. Richards Lodge This site uses cookies. In response to Liz Wynne Thats no comfort for many who bought in Crosss development, Laurel Court. Stopping forfeiture. Again it hasnt sold and has now been withdrawn. We will do everything we can to support our residents. WebMcCarthy & Stone was founded by John McCarthy and Bill Stone in 1963. Then came the shock. We were seeking to increase our homes to 3,000 homes per annum. 2011-11-22 187,950, 12, St. Richards Lodge It is an incredible loss to take. 2010-02-26 199,950, 17, St. Richards Lodge The seller and the agents will already know this but the only people buying on this estate are the Chinese and they want new-builds. Will Clive Fenton be trying to make his case with the APPG group next month. This in turn means you may need to accept a lower offer. However, before the pandemic hit, people were reporting problems. In November 2019, the Guardian featured the case of a man who had been trying for four years to find a buyer for the one-bed McCarthy & Stone retirement flat in Kent that his late father originally bought for 161,950. As the Daily Beast reports, Ellmers was primaried in a redrawn district in 2016. This will not be the first time the McCarthy & Stone business plan has gone awry? FirstPort says that service charges are kept in separate accounts for each development and used for maintenance, insurance and any staff who work there, and missed payments can cause shortfalls. When they do, they can only offer a reserve of 40,000, which is lower than the 50,000 mortgage already owed on the property. McCarthy and Stone said: The development [Cestrian Court] had all the necessary building regulation approvals when it opened. Over time that would be a significant input into the market. 2014-05-23 230,000, 2, St. Richards Lodge The apartment is stunning she had exquisite taste and it is in a great location next to an upmarket row of shops, Smith says. One of the reasons for the loss is the incredibly high ground rents. Our ground rents are fair, says McCarthy and Stone (even though they go up to 600 and are for no service whatsoever). Days after we contacted the management company, it dropped the extra fees and offered Smith longer to sell the property, but she remains worried about what will happen if it is not sold soon. By 2004, as a listed company, it Leasehold Knowledge Partnership McCarthy & Stones developments are typically built to at least lifetime homes standards. They say that their business model does not work if ground rents are taken out. Do send more punnies to kelvin@the-sun.co.uk. By 1996, the company had cornered 70 per cent of the retirement market. This does mean that it requires a more comprehensive level of servicing and the service charge is higher than it would be on a non-assisted living development. It's important to remember that not all retirement property developers are the same and many provide great service. McCarthy & Stone said that since 2010 it has run its own management service on new sites and no longer sells the freeholds to other parties. WebRetirement 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. So wake up M&S and get it sorted now. Rosemary also deplored the flats loss in value. My advice to anyone considering a McCarthy and Stone property whatever you do, dont. First Mum died and then Dads health deteriorated to the point he had go into a home. She died two years later but the family couldnt find a buyer until five years later, when it went for 70,000 a loss of 74,000. It has to be acknowledged that the purpose of taking management in house has largely been vindicated. That Mr Fenton makes mention that 30% of the development is unsaleable. A huge thank you to LKP for an outstanding service appreciated by so many. Mr Fenton was asked why the volume retirement housing should you be exempted by government from the ground rent ban. My advice is to keep clear of the McCarthy and Stone new-builds and buy second-hand. If you make us bear this cost we will build less retirement housing?, Mr Fenton replied: It is honestly not blackmail. The sales rep offered him an early bird discount, knocking 3,000 off the cost of a one-bed flat, selling it to him for 161,950 in 2007. Exposing abuses. Any potential new buyers would have been appalled at the way the sales team coaxes new clients into a disadvantageous part-exchange sales process of their existing home. This service is provided on News Group Newspapers' Limited's Standard Terms and Conditions in accordance with our Privacy & Cookie Policy. "The Sun", "Sun", "Sun Online" are registered trademarks or trade names of News Group Newspapers Limited. These areas total about 30 per cent of our developments (for example, our shared lounges, restaurants, scooter rooms, well-being suites and staff accommodation) and are essential to the lifestyle that retirement living provides for older people. 3. And the value of those properties on average has increased in 75% of cases.. It is roughly double what you would expect in normal apartments. Another purchased for 151,000 in November 2009 sold for 105,000 in April this year. Aldi releases list of 30 sites where it wants to open Do YOU know how much a flooded home costs to repair - and Reckitt Benckiser boosted by baby formula exports as Are you allowing your bank to rip you off? Looking for a cheaper mortgage? They dont want to pay ground rent. Our services vary across our developments. When she died, service charges and ground rents were up to date, and she had recently overseen the propertys refurbishment. Service levels declined. They are really lovely, immaculate flats, with a lovely communal lounge, said one Folkestone estate agent contacted by Guardian Money. Also, the people that want to normally buy them are reluctant to move house and, of course, there have been travel restrictions, which have made it difficult for relatives of prospective buyers to travel to view.. Read our policy. To inquire about a licence to reproduce material, visit our Syndication site. However, those changes impose inherent future risks to the company and their residents. Otherwise this will snowball, become a massive issue, and their reputations will take a huge dive. IT may be too late by the time you read my column but could I urge readers to attend the funeral of Westminster attack hero PC Keith Palmer at 2pm at Southwark Cathedral today. After announcing that he would not seek the speaker's post on Thursday, he was asked about Wednesday's cryptic letter from Rep. In a statement, FirstPort said: Laurel Court is an assisted living development with enhanced communal facilities such as a restaurant, dining room, function room, restaurant kitchen, staff room, sleepover room, and two lifts. but leaseholders are concerned it is selling freeholds to anonymous buyers McCarthy and Stone complains about right to reply to LKP / Better Retirement Housing articles McCarthy and Stone told The Times yesterday that there would be fewer of its form of retirement flats if the government reduces ground rents to a minimal , Mr Fenton continued: They use the income to fund their pension obligations and they provide us with the cash that we are able to reinvest back in buying more land and more developments.. "It doesn't matter if you're from Louisiana, Florida, Indiana, New York or North Carolina or even California. To achieve victory in the leasehold game where you are playing against professionals and with rules that they know all too well - stay informed with the LKP newsletter. The problem is that there has been no government support for our sector compared to the first-time buyer market. We take care to explain each option so customers can make an informal decision on what is right for them.. One problem is the very limited range of people allowed to buy. SUSPICIOUS that those ubiquitous McCarthy and Stone retirement homes were a bloody awful purchase I asked readers in Fridays column for their experience. A homeowners guest or guests are welcome to stay for as long as the suite is available and paid for and costs are typically 25 a night, which goes to the homeowners, not McCarthy & Stone. This brings me onto another thing to bear in mind - how long your parents plan to stay there. LKPs advice is: do not buy retirement leasehold at all. McCarthy and Stone said: Part exchange is only one of a number of options that we make available to our customers to facilitate their move. What other charges does a company like this impose? Why not? He Diverted Voter Registration Money to a GOP-Allied Gay Rights Site Fight disinformation: Sign up for the free Mother Jones Daily newsletter and follow the news that matters. MoneyBox then asked whether this loss would matter much: McCarthy and Stone only expects to build 2,100 units this year and there are one and half million retired people who want to downsize. 2017-10-12 275,000 It went up for sale on 26 June, and since then there has not been a single viewing, despite the price having been cut. Read original story here or search Strand Court on this site. In both cases, the four-figure annual service charge on the property was highlighted as a potential problem. Some apartments from Britains biggest retirement builder have dived in value due to hefty charges. That so much income is dependent on ground rent fees is a risk if those fees are challenged and as with exit fees have to be dropped. Im going to go bankrupt at this rate, he says. But isnt that because your properties are sold above market price anyway? asked Mr Lewis. By 2004, as a listed company, it was recording pre-tax profits of 114 million and both men had sold their shares in the company. Do send your saving stories to kelvin@the-sun.co.uk. Mr Fenton admitted that the company sold on the freeholds. By Joey Gardiner2021-01-29T00:57:00+00:00, US private equity firms 647m buyout will now take effect after yesterdays court order. Having an estates manager and other on-site staff available 24/7 in an assisted living development offers safety and security that is really valued by our residents and their families. 1. If M&as cannot charge their 600 annual ground rent then there is a prospect of the business being sold off to someone like Tchenquiz or managed by a company like Peverel. The views expressed in the contents above are those of our users and do not necessarily reflect the views of MailOnline. 2016-06-09 152,500 By 1996, the company had cornered 70 pc of the retirement market. His argument will be torn to shreds. Reverse nominative (names that dont fit the job): English teacher in Bolsover, Derbys Mr French. WebThe Jan 6 committee has reportedly requested McCarthy's phone records from the day, because he may have possibly called Trump. Previously McCarthy & Stone developments were funded by debt to such an extent that at their nadir they ended up nearly 900,000,000 in debt (before being re-financed and effectively run by the banks) The ground rent income stream underpins the viability of our developments and largely pays for the significant communal areas we provide in our developments. Nine out of 10 of our customers say moving to one of our properties improves their quality of life.. This is in spite of the hard sell, the dismal capital values and they fact that McCarthy and Stone draws up its disadvantageous and exploitative leases. Tuesday, February 28, 2023 McCarthy Gave Tucker the Jan. 6 Tapes. Lovely, immaculate flats, with a lovely communal lounge, said one Folkestone estate agent by. The Daily Beast reports, Ellmers was primaried in a redrawn district in 2016 has gone awry not seek speaker! In 1963 rents are taken out of taking management in house has largely vindicated... Build less retirement housing?, Mr Fenton admitted that the purpose of management. Bought a one-bed in Studley, Warks, for 144,000 in 2006 long your parents plan to stay.. Cases, the company and their reputations will take a huge thank you to LKP for an outstanding service by... It has to be acknowledged that the company had cornered 70 pc the. 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