Urging reform. Leasehold Knowledge Partnership. Full year results announcement for the 14 month period ended 31 October 2019 McCarthy & Stone (the 'Group'), t he UK's leading developer and manager of retirement communities, announces its financial results for the 14 month period ended 31 October 2019 ('2019').All comparatives are to the 12 month financial year ended 31 August 2018 ('2018') unless otherwise stated. That’s why viewings are currently strictly by appointment only and places are limited. At some of our most recent developments, the service charge also includes the cost of heating the apartments. If you accept our part exchange offer, we’ll work with your legal representatives to finalise the contracts. Bear in mind you may get a higher price on the open market. We take care to explain each option so customers can make an informal decision on what is right for them.”. All retirement leasehold blocks should do the same. “The home building industry is committed to ensuring that leasehold is used appropriately and remains a safe and secure tenure for homeowners. This means that we will continue to be the landlord and responsible for the estate management of the development. Ground rent enables our apartments to remain competitively priced. Yes. The safety of our visitors, communities and employees is our top priority. There is also a small administration fee collected by MSMS / YLMS to cover their costs to check that the incoming occupier meets the terms of the deed of conditions (i.e. No. Over the past two years, our Entitlement Advice Service has helped our customers claim more than £1 million a year in unclaimed benefits, advising on things like Council Tax benefit, Attendance Allowance, and state pensions. Removing ground rents would likely mean we would need to raise our prices to recover this income or introduce additional charges. When it comes to finding your ideal new apartment, you should also consider which of our development types best fits your needs. We have made significant improvements to our products and services in recent years to improve the quality of our apartments and their ability to retain value, including: Setting up an in-house management services team dedicated to high standards and a single end-to-end service for customers, More internal space, en-suites, underfloor heating, walk-in wardrobes, improved bathrooms, level-access showers and enhanced kitchens. “they are doing their very best to get the flats off their books as quickly as possible,” said solicitor Rachel Stafford. Ground rents are fixed for 15 years. This offer is available at selected McCarthy Stone developments, so make sure you check with the sales team on site. We do not offer nursing care and are not suitable for someone with medical care needs. Advising leaseholders. Please call us on: 0800 201 4811 and we’ll take you through your options, from virtual tours to booking a viewing. The freehold reversionary interests (ground rents) are sold but only on terms where McCarthy Stone retains a head leasehold interest and remains as immediate landlord with an ongoing responsibility and accountability for management of the developments concerned. If you decide to sell, you will need to ask an independent estate agent/ surveyor for a valuation. Alternatively, our developments are typically in well-connected central locations, close or in town centres, and of a manageable size, averaging around 40 apartments. Costs in Retirement Living PLUS developments are higher than in Retirement Living developments to reflect the increased staffing costs, the provision of domestic support packages, and the table-service restaurants/bistros provided on-site. We can arrange a private, confidential Wellbeing Assessment with the Estates Manager, and a personalised care plan is then put in place so homeowners can be sure they’ll have all the care and support they need from the moment they move in. As a result, our customers live independently and have healthier, happier and, hopefully, longer lives. 70% is the standard option – there are options to increase this over time, known as staircasing. In most of our developments water and sewage is included in the rent. Increases are linked to either the movement in the Retail Price Index (RPI) since the last review, or if greater, by 2% per annum, and are compounded yearly. It is held in trust and used only on the maintenance of that development and cannot be accessed by McCarthy Stone for its own purposes. As with all leasehold properties in England and Wales, ground rents are a condition of the lease for our apartments. Should you wish to end your tenancy after the 12 month fixed term, you need to provide two months written notice. There is a maximum five night stay within Retirement Living PLUS developments. Yes whether your planning to buy or rent the retirement property, if you change your mind or circumstances change you will get your reservation deposit back. We can’t ask you to leave unless you have broken the terms of the agreement. The use of lightweight motorised scooters (maximum speed 4 mph) is permitted within the development. And Mrs Grimsdale was told she had to make a decision in four days to ‘benefit’ from part-exchange. We have developed a simple chart to help customers make a direct comparison for use during the sales process and a full breakdown of the service charge budget is available from our sales consultants and managers at all new developments. Charging ground rents in retirement developments enables average selling prices to be kept affordable for customers. Each time you staircase you need to plan for additional costs such as valuation fee, legal expenses, SDLT*/LTT** if applicable. Or talk to us on 0800 201 4811. They are reviewed on the fifteenth anniversary of the commencement of the term and each successive fifteenth anniversary from that date. These figures are correct up to 30 June 2021. At some of our most recent developments, the service charge also includes the cost of heating the apartments. Without this income stream, we will not be able to buy as many sites as we have been at a time when the sector should be expanding to meet demand. She was told by a sales woman that part exchange was a ”god-send”, and assured that she would not get less than the market value. Appeal number: TC/2010/0691 & TC/2010/0686. The retirement community sector uses ground rent income to recover much of the construction costs of the communal areas within our developments. Terms and conditions apply. Our policy is one of complete transparency around costs. The sale of the freehold ownership to a property investment company will not change any of the rights and obligations included in the apartment leases. But she sold it herself for £50,000 more after only two weeks on the market. The UTCCRs … Yes. Service charges cover the day-to-day costs of management and maintenance within our developments, such as the heating and cleaning of communal areas, buildings insurance and redecoration. For a typical Retirement Living PLUS apartment (based on Chesterton Court in Ilkley), the latest service charge is £138.27 a week for a one-bedroom apartment and £184.31 a week for a two-bedroom apartment. Ground rent applies in England and Wales, but not Scotland, which operates under a different legal system. UPDATE June 8: McCarthy and Stone points out that over the credit crunch period (the five years between 2007/8 to 2011/12) it sold 7,170 properties. Benefit from an on-site manager and access to communal areas for socialising. McCarthy and Stone Augustus House gave us the best options for personal reasons and most importantly gave flexible life style arrangements. Talk to your sales consultant or call: 0800 201 4811 for advice. It means if the developers, freeholders or property managers try to cheat you, you can walk away. McCarthy & Stone claims a lot of the lease problems are historic and have been resolved. Don’t worry, we’ll make sure you know the exact amount you need to pay in plenty of time. Consumer Contracts Regulations 1999 (the UTCCRs). Information on Right to Manage is given to every homeowner in the Purchasers Information Pack. The ground rent does not increase after the 125th anniversary even though our new leases are for a term of 999 years. Yes. By Simon Tye, Legal Adviser September 2017 Health and safety in blocks of flats, and in particular, fire safety risk assessments, are very much on the radar following the tragic events at Grenfell Tower. There is no obligation for you to accept. So far none of our homeowners have done so and we continue to provide services on their behalf. With Smooth Move we offer you contributions towards your estate agent and legal fees as well as free specialist removals: Up to £2,500 towards estate agent fees* If you sell your existing property through our recommended estate agents, we’ll contribute £2,500 (inc. VAT) towards fees, once you’ve legally completed. Care homes typically offer single room accommodation for rent, whereas our developments you own or rent your own private apartment. number: 08999652) is a company limited by guarantee that is a registered Step 2We’ll give you a part exchange offer based on these valuations. 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. You can also store Class 3 (maximum speed 8 mph) scooters in the storeroom, which often contains a charging facility. the leasehold) of certain property for a fixed period of time (such as 99 or 125 years). Charges vary slightly between developments and range from £4 - £7 per meal. ... to new-build homes being sold under leasehold agreements… We do not allow smoking in your property or the communal areas. Up to £1,000 towards legal fees* We’ll contribute to your legal fees when you use one of our recommended, independent solicitors. Once contracts have been exchanged a completion date will be confirmed by your solicitor and/or one of our Sales Consultants. It is your responsibility to tell suppliers that you have moved in and to set up payment. Homeowners are under no obligation to take care packages from us and can use a third party if preferred. 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. RPI has been in the range c.1-4% since 2013 and was 3.3% in March 2018. They are set by McCarthy Stone at the outset of the development and are clearly highlighted during the sales process to … We will contact you to arrange a convenient time. We will collect the ground rent and service charges. Where the underletting is for more than a year, the contingency fee is 1% of the annual rent payable annually on the anniversary of the commencement of the term. All guest suites offer: En-suite TV Tea and coffee making facilities Access to the homeowners' lounge and other development facilities. If it was removed, it may well result in higher purchase prices in the region of £15-£18,000 per apartment, although we remain determined to limit any increases and will look at all alternatives. Exposing abuses. McCarthy and Stone plc Retirement housing company agrees to change its lease agreements. Ground rent £495 per annum. The walls are painted in cream or white as standard however we can also provide interior design options at an additional charge. Yes. It is a specific fund kept in the development’s own bank account. Most problems can be solved quickly and informally by our House/Estate Managers or sales consultants, so please do speak to the team first. The company takes issue with Campaign against retirement leasehold exploitation’s view that there has been “almost NO demand” and that “schemes have not been sold”. However, this varies, and some developments offer 30 minutes of domestic assistance. The service charge budgets represent the costs that we expect to incur in a normal year, with a full development. Our service charge varies slightly from development to development reflecting their different sizes and facilities, but they are calculated in the same way across the country. Then the Dispatches sent in an actress posing as the 79-yeat-old widow Mrs Grimsdale, who was pretending to sell a four-bedroom terraced house in Worthing to buy a one-bedroom flat at Cherrett Court, Bournemouth. You’ll benefit from an on-site restaurant or bistro, a 24-hour Estate Management team, and the option of bespoke domestic and personal care package. *Stamp Duty Land Tax **Land Transaction Tax (LTT) has replaced SDLT in Wales from April 2018. Tonight’s Dispatches programme on retirement leasehold was a brilliant example of television journalism that was extremely damaging to both McCarthy and Stone, and to Peverel. Find out more about functional cookies here. This type of scooter must be stored in your apartment. No ground rent is payable for these properties. These cookies also allow us to give you tools like videos and calculators. Your rent includes all of the development’s service charges, ground rents and property maintenance. All developments since 2010 are managed by a division of McCarthy that it … As Baroness Gardner said, you needed to be a “mathematician” to understand it. Your House Manager or Estates Manager will be able to help you to find a reputable company. It explains residents’ rights, including the right to set up their own management company or to go to a third-party provider. All developments released for sale from August 2015 have 999 year leases. Some of our sites have a laundry facility, although this varies. Call 0800 201 4811 for more details of our terms and conditions. Age restrictions and age exclusive options for retirement living. OFT considered the term likely to be in breach of the Unfair Terms in Consumer Contracts Regulations 1999 (the UTCCRs). This would severely impact affordability for our customers. The terms Retirement Living and sheltered housing are used interchangeably for the same development type. Find out more about strictly necessary cookies here. With regard to subletting on leases prior to October 2014, we will charge a concessionary rate (irrespective of the provisions in the lease, which may be higher) of one month’s rent for each year that the apartment is sublet (or pro-rata for less than a year). 3. If you haven’t  received a brochure within 10 days of your request then please give us a call on: Three independent local estate agents and a surveyor will value your property. No. Please contact our Property Transfer team on 01202 508299 for more details. We offer to pay reasonable legal costs to homeowners who wish to establish a Right to Manage company. The council tax band varies per development. We’ll even contribute £1,000 towards your solicitor’s fees*. The security deposit is equivalent to five weeks rent. We don’t believe in a ‘one size fits all’ approach. Apartments include waist height ovens and plug sockets and slip resistant flooring and lever taps in the bathrooms. We do not offer care homes. The buildings insurance included within the service charge generally only covers damage that is caused to the building or communal contents (i.e. The money raised from the sale of the freeholds is then reinvested into the business to assist with the funding of future developments. due to a running tap etc). If you have to live in one, then rent instead. Unlike other housebuilders, McCarthy Stone retains this long leasehold interest until after the lease of the apartments on a particular development has expired. You benefit from an on-site manager and access to communal areas for socialising. In December 2017, the Government announced plans for removing ground rents in new-build properties. This is a concession from the terms of the lease which are in essence one month’s rent for each six month sublet period. Norman Greed, 82, showed that pensioners can organise a successful right to manage and slash the burden of their service charges. Registered in England Number: 5128635. You can read our briefing note here. They are tightly regulated by national legislation and must relate to the management services provided within the development, not to construction or repair costs. London N1 9AG, Copyright © 2020 Leasehold Knowledge Partnership | All rights reservedLeasehold Knowledge Partnership Limited (company Ground rent income goes towards the construction costs of the communal areas we provide. As part of our system of checks and controls, we regularly monitor service charges in our managed schemes against current market practices and third party providers to ensure we offer competitive rates. But most powerful of all was the expose of McCarthy and Stone, whose seemingly motherly sales force (“mother value” is the dubious term McC&S uses) were revealed to be predatory. Talk to your sales consultant about the process or call: 0800 201 4811. No, but our apartments are designed to be wheelchair friendly and corner baskets / carousels etc, may be provided in some developments. All rental payments are due on the 1st of each month and must be paid by direct debit. Special dietary requirements can be catered for and friends and family are welcome to join for lunch. The sessions start from as little as 15 minutes per day and can be increased and decreased as required. But if a homeowner or their family is experiencing difficulties in paying, we are here to help and will do our best to support them. This depends on how the flood occurred and who is responsible. We use this information to make our website more relevant to your interests. A transfer fee, which is also known as an exit or event fee, was a charge paid directly to the freeholder of the development when an apartment was sold or rented out. Retirement Living developmentsThe service charge covers a range of services provided for homeowners, such as: We believe the charge provides good value for money. Extra care, assisted care and Retirement Living PLUS are terms used interchangeably for the same development type. All care and support services can be provided by our on-site care staff. Our ground rents are comparable with those charged by other providers of retirement living accommodation and are competitive within the housebuilding industry. Talk to your sales consultant or call: 0800 201 4811 for more information. Leasehold property - leasehold disputes, buying the freehold, service charges, lease extensions and Right to Manage ... while retirement-home specialist McCarthy & Stone saw … Avoiding disasters. Family or friends can own the apartment on your behalf, but only people that meet the age requirements and criteria for the development can live there. YourLife is regulated by the Care Quality Commission in England and its equivalent bodies in Scotland and Wales. If you do have an issue, please do let us know so that we can resolve it. The freeholds and maintenance contracts are spread across the UK and include thousands of McCarthy & Stone retirement home developments … We charge a fee for the cost of chasing rental payments that are more than 14 days overdue. What is right for them. ” decision on what is right for ”. Are built to comply fully with building regulations which cover sound proofing the! 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