McCarthy and Stone apartments. What's the worst that can happen?

[Purpleandping]

This living style would suit my DPs and remove the burden of supporting them in their overly large house from me.

From my POV, I don't really care if it's a poor financial decision. It's their money and should be spent on a comfortable life.

My sister, who is a good person, but lives a long way away so isn't involved in the day to day of it, is worried that "we" will have to continue paying charges after their death, if it doesn't sell.

If it's the estate that would pay, I also don't have a problem with that. If their whole estate is swallowed up in paying for this place, to give them a decent life now that's OK. Obviously it would be better if it wasn't but if that's the worse case, that's OK.

DSis is worried that once the estate is spent, the charges would fall to personally. Can that be true?

So, whilst it will ultimately be DP's decision, I'm comfortable if, worst case, all their money is spent, leaving no inheritance, but I wouldn't be comfortable to think I'm committed to paying out of my own money if things were very protracted.

@Purpleandping Not all over 55 properties face the same issues so look around.

I agree with pp renting rather than buying is a serious option. You can generate income by either renting out their current home or selling and investing money.

I’m currently trying to sell my late father’s retirement flat - not M&S but similar set up.
You can’t sell until probate is granted; it’s taken me nine months to sort out ITH and probate has recently been applied for.
I’m marketing the flat but if anyone wants to buy we can’t compete before probate.
Dad point blank refused to rent and bought after covid when prices were high so I always expected a loss. It’s currently costing the estate approximately £500 a month, and tbh it’s absolutely not about the money; I hate the place (even tho it was the best place for dad at the time) and just want to be rid of it.
Renting it out would bring in about £250 net pcm and my children have no interest in inheriting it. For me it’s more about drawing the line under a very tough five years and if anyone made me an offer I’d bite their hand off.

I think that a lot depends on how the will is written and how many beneficiaries there are

If the will says the executors are to sell the property & split the proceeds then the estate can become insolvent but not the beneficiaries.

If you have an only child or beneficiary & they inherit the property then they rather than the estate can be in the firing line of it doesnt sell

There are an awful lot of 'I think', 'not sure', 'maybe' type comments on this thread.

Decisions need to be made on facts, which vary dramatically from development to development.

My aunt pays £300 pcm service charge, which covers water/insurance/maintenance/gardening/sinking fund/manager. I don't think that is unreasonable.

In this particular development, residents need to be 55+. There is one around 500 mts. away where the minimum age is 70+, there is a full time medical presence on site, around 50 properties and the service charge is around £800 pcm. You have to take your choice.

People talk about buying a bungalow. There are pretty impossible to find in many areas, at a sensible cost. But you are still left with the issue that when you close your front door, you're alone. My aunt is lucky in that she feels at home in her small community, and has made good friends.

I appreciate that we will ultimately be left with a headache, but her current wellbeing is our priority.

How deep are their pockets? For example the hallway needed painting at my mother-in-law’s Centre. If you were I wanted to paint our hallway of a similar size It probably cost £2000. It cost 20k for them.
And that was in 2008 so Lord knows what it is now eye watering I would imagine

Yes I was going to say ths, there are other 'retirement' flats which offer similar but arent quite so pricey

You'll still sell at a loss, but if thats ok, then its not a problem

Also, remember the service charges are really high M+S are the highest Ive ever seen so shop around for a flat which doesnt have them so high, perhaps only about 4 or 5k a year

As far as I know, only the estate should be charged for the fees in between death and sale, another person cannot be held liable for them.

@likelysuspect our relative who lives in M&S flat is only paying about £4k a year.

My best friend had an absolute nightmare after one if her parents died and the other needed to ho into care. It dragged on for years.
To save time and to be more articulate I asked AI to do a summary if it helps to clarify the problems.

1. Rapidly Plummeting Resale Value

• Guaranteed Losses: Analysis of Land Registry records shows that nearly 60% of McCarthy Stone flats resell at a loss, with owners losing an average of £41,000. Some properties lose up to 70% of their original purchase value. 1, 2]
• Artificially High New-Build Prices: Properties are sold at a premium because the developer prices in "communal spaces" (like lounges and staff offices). However, the second-hand market does not value these spaces similarly, meaning the property drops in value the moment you move in. 1, 2, 3, 4]

1. The Empty Flat "Service Charge Trap"

• Inescapable Fees: Service charges and ground rents are exceptionally high, often totaling thousands of pounds a year.
• The Inheritance Nightmare: If the resident passes away or has to move into long-term care, the family must continue paying these steep service charges even while the flat sits completely empty. This frequently drains families' savings or forces them into debt. 1, 2, 3, 4, 5]

1. An Incredibly Illiquid Secondary Market

• Highly Restricted Buyer Pool: By lease terms, the properties can generally only be sold to people over a certain age (usually 60 or 70). This massively reduces the number of potential buyers. 1, 2, 3]
• Tough Competition: When families try to resell an older flat, they are often forced to compete directly against McCarthy Stone themselves, who may be actively building and marketing shiny, brand-new developments right down the road. 1, 2]
• Years to Sell: It is common for these apartments to sit on the market for three to seven years without a single serious offer, all while ongoing fees accumulate. 1, 2]

Summary of Hidden Exit Costs
A summary compiled by the <a class="break-all" href="https://www.google.com/url?sa=i&source=web&rct=j&url=hoa.org.uk/advice/guides-for-homeowners/i-am-buying/hidden-costs-retirement-properties/&ved=2ahUKEwjC79Kl0qmVAxVoU0EAHRwDBfkQy_kOeggIAggACBkQAQ&opi=89978449&cd&psig=AOvVaw1LCyzuMol0_ADbloL8dEQ6&ust=1782726076930000" rel="nofollow" target="_blank">HomeOwners Alliance highlights the typical financial friction points built into the retirement leasehold model: 1, 2]

Financial Risk Factor 1, 2, 3, 4, 5]Impact on the Buyer/Family
Exit / Transfer Fees
Some leases require you to pay a % fee back to the landlord just for the right to sell or sublet.
High Ground Rent
Often sold off to third-party offshore investment trusts, leaving residents with no control over costs.
Passive In-House Resales
Families report that the developer’s internal resale teams lack motivation to move empty flats quickly, as the developer continues collecting service fees anyway.

Thats a bit more reasonable, they vary so much.

Depending on how old they are and their finances they should consider renting. No problem with depreciation, selling or liability for ongoing service charges , sinking funds etc once they have died or gone into residential care.

ChatGPT answer:

Am I personally liable if I inherit a McCarthy Stone apartment and cannot sell it?

The key issue is whether you become the legal owner of the apartment.
In the UK, for a McCarthy Stone retirement apartment:

• If you inherit it and accept the inheritance, you become the leaseholder. As the leaseholder, you are generally responsible for:
• Service charges.
• Ground rent (if the lease requires it).
• Any event fees or deferred management fees specified in the lease.
• This liability continues even if you cannot sell the property immediately. Retirement apartments can sometimes take a long time to sell because the market is relatively limited.

If the apartment remains unsold for months or even years, the service charges usually continue to accrue. The management company can pursue the leaseholder (or the estate, depending on the stage of administration) for unpaid charges. There is an important distinction during probate:

• Before the property is transferred to you, the deceased's estate is normally responsible for ongoing liabilities, including service charges.
• Once the property is assented or transferred into your name, you generally become personally liable as the leaseholder.

If there isn't enough money in the estate to pay the charges before the property is sold, the executors may have a difficult situation to manage, but beneficiaries are not usually personally liable for estate debts unless they have become the owner or have distributed the estate improperly. If you're worried about being stuck with an unsellable apartment, there are options to consider before accepting ownership, including:

• Disclaiming the inheritance (if appropriate and before accepting benefits from it).
• Ensuring the executors market the property while it remains part of the estate.
• Reviewing the lease carefully for any provisions affecting ongoing charges.

As far as I know, only the estate should be charged for the fees in between death and sale, another person cannot be held liable for them.

I don't understand that statement. If someone is left a property in a will, in this case a flat in a retirement complex, once probate is granted they are the owner. The owner is liable for any charges on the property.

If additional sums, or additional assets they can liquidise, are left to them in the estate, they can use those to pay the charges. Once that money has been used up, or if there was none in the first place, then they will have to pay the charges from their own money until they sell the property.

What about another provider like Richmond Villages or are they all the same?

Yes I meant between death and probate, I was lumping together probate and sale as happening at the same time but of course the whole point is they dont often coincide if you cant get rid of one of these things

Perhaps the RSPCA or other charities would like to be left retirement flats. They're always mithering old people for their money. Then they can deal with it.

Or, maybe it’s about companies profiting off of elderly people when there are far more cost effective solutions.

A couple could get nearly 10 years of personal care in their own home for 250k. 2-3 hours per day, that’s on top of what the local authority would provide. They could have a live in carer for 4 or 5 years, live in a care home for 3 or 4 years.

Just because they can afford it, doesn’t mean they should. I couldn’t give a shit about inheriting, but if my parents said they were doing this, or using one of those equity release schemes, I’d be advising them not to. Not because I want their money, but because I don’t want someone else to have it when there are other options for them to still have a brilliant life.

Absolutely not. They are then liable for all fees associated with them. It would cost them a fortune.

You can reduce the price to buttons if you want to - that isn't the issue. M&S can't do anything about that, but for older flats they take a percentage of the sale price to go into the sinking fund (so they say).

But new flats can't have those terms in the leases because the CMA took action against the likes of M&S and other providers.

M&S also control who you can sell to. This means that if there are other empty units they can to some extent prioritise those over yours on a sale

they can try but we just used a normal estate agent and sold comparatively easily, given there were a few others for sale in the block. They weren't pleased, but that wasn't something they could do anything about.

However, you might not care about an inheritance, but you might care about the stress of having one of these flats and trying to sell and pay fees.

I don't think they are all the same although I suspect they all have similar restrictions on who can live in them and whether they can be rented out. Although some seem to for over 55s (who would want to live in a flat like that at 55!) and others more like over 75s.

I imagine charities would refuse such a bequest, as they are entitled to.

From gov.uk in accepting or refusing donations, under which bequests would be counted.
https://www.gov.uk/guidance/accepting-refusing-and-returning-donations-to-your-charity

Also an explainer from a solicitors' firm.
https://www.nelsonslaw.co.uk/charities-disclaiming-an-inheritance/

@igelkott2026 quite a few people on the younger side use it more as a base, so they can travel and just lock up and leave it. Also they can be a very social way of living.

Interestingly similar properties are now marketed for younger generation, so young professionals, either self contained studio or one bedroom flats but also with communal areas. I must admit when my gran moved into her retirement flat and I had just left uni I thought it would make an ideal first time home. Your own place but also with social areas/activities on tap if you wanted to meet other people

I looked into this retirement living plan and the services charges are very, very expensive. When your DP both pass it will be a nightmare to sell. You can only sell to sellers over 50 and you will be responsible for all the charges until the day it changes hands. You may have the option of selling to McCarthy and Stone at a much, much cheaper price than was paid for it.

Yes what's left of their estate can pay ongoing costs but what if the estate runs out of money. You and your sister being beneficiaries will inherit the retirement apartment and be responsible for all the costs. Some people have said it took them a year to sell and had to greatly reduce the price. The services and other costs swallowed up all the equity while they tried to sell.

These arrangements can seem attractive but you could be left with a property you cannot sell, and you could also have to pay huge service charges even on an empty flat.You could inherit an ongoing liability.
Think about having daily help in their current home or a private flat instead. Still expensive but the long term problems aren’t there.

Yes but the money can run out quickly, especially if one is moved to a care home. So if no money in the pot when not parents have died and you cannot sell it. You are liable every month for the costs.

There is no way I would be able to pay those costs on top of my own living costs. Some of these costs take years and years to sell, you could end up owing them money.

Absolutely.
I tried to persuade my father to rent but he was a true blue Thatcher Tory and as far as he was concerned all you do with property is buy it. .. he was wont to mumble about “these people who rent property” - even though most of the rest of his family have rented at times.
I gave up.