MCCarthy Stone- what's your view?

[Flyhigher]

Elderly parents in law thinking of a McCarthy Stone place. What do you think?

Is it good or bad? Are they financially worth it?
Do you lose money?

I think if a person wants to be part of a community even if their estate loses money then if it’s right for them then fair play. I’m not going to decide on what I’m doing when I’m old just to leave money behind.

I agree. A friend's parents sold up and moved to one recently,it's given them a new lease of life,they live the community aspect of it. I spend time with them and they are so happy.

Agree, and in our case DM had some savings.

My point is that people can be naive about what long term retirement and old age may look like. It is incredibly variable. Some will quietly live out their time in a comfy flat and die in their sleep. Others will suddenly face serious chronic or acute ill health. On paper, my mother's purchase made sense but we got burned…she died within 3 years and it took almost that again to sell. It was all very sad and not being able to get closure on the flat situation was difficult emotionally.

That said, it’s like selling any property— the right buyer finally rocked up and was delighted with it.

My late parent was in one and renting. Best thing she did. If you really MUST buy one then look at second hand. They can be lightly used for obvious reasons.

My Uncle brought one at 91. Stupid idea of course and it was brand new. He just wouldn’t listen. He lived in it for 6 months and then had a bad fall. Never returned to it.

Sound good till you delve a little further into the conditions. Huge restrictions ovn selling and service charges still to pay.

Rent one!

There is a M&S development in my village. It’s really nice with lovely gardens and many flats have balconies overlooking it or the neighbouring fields.

When flats come up for sale they do seem to sell reasonably quickly, but notebly not at price when they were new 7 years ago (between £300-450k).

The most expensive seem to be selling at the £300k mark for the 2 beds with balcony - a steep drop for anyone who bought new. But they do seem to sell if priced correctly.

The fact is (especially new) they are never going to be a good investment like most conventional properties and many fail to sell because people want what they paid or won’t accept serious losses.

So the key is to be really clear about the pros and cons and there are pros - they are just not financial.

I think the development itself is a big factor. Some are much nicer than others and in better locations that are liable to be easier to shift than others.

I’d be very wary of buying new and also in a development where there are lots for sale already.

As pp’s have also said timing is a big factor. So many leave a move like this too late - almost at the point of needed residential care and that’s a mistake. It’s a massively expensive choice if you expect only to live there for a few years.

On the other hand having the on-site facilities (the one near me has a cafe/dining room/guest apartments/lovely gardens/great transport links in a thriving village with lots of local amenities) when you are in a position to enjoy them for 10 years or more (and can afford the charges) is about the lifestyle it provides rather than the money.

@Tinybigtanya I’m amazed more aren’t being built to rent for over 55s -even posh ones - I think many older people wouldn’t have an issue with it so long as tenancies are secure- many would happily pay several thousand a month for rent and services and keep their cash in the bank earning interest towards it without all the faff of selling them and with ready access to cash if needed

I know people happily in an MS development and a family who recently sold, easily within weeks of probate being granted. I think it is very variable and local market dependent. We have a constant stream of retiree’s arriving here so buoyant market

I'm an older people's social worker and have advised my mum not to go down this route. Certainly for all the schemes I'm aware of, thee are no care staff on site so no support if anything happens eg a fall or sickness. Just a pendant alarm.

The service charges are very high and families have to pay them when the resident moves into a care home or dies. The flats/properties can take ages to sell and they depreciate hugely.

Obviously schemes vary but do get your parents to check into the one they are looking at very carefully before making any decisions.

Late parents one had 24 hour cover with someone on call in the development.

People get carried away with the new ones at 80 years plus. It’s never going to end well. At my parents development which was actually a M and S they had a secure tenancy and in fact she did leave after it was clear her health was declining.

It is a developer's money box, buy high and lucky if you can sell at all, with costs that mount up and for which you inherit!! Developer's don't care about people and this is another scam, like shared ownership, where a developer gains loads and those that buy don't!!

I used to manage one. The build quality is poor, (though they are surface level pretty), the service charge is extortionate and the care staff are not in any way superior to other care staff, but you do pay a premium price for them. When I worked there the senior management team were very keen for us to extract as much money out of our residents as possible (which I was less keen on, hence why I don’t work for them any more). Put your back out and need your lunch bringing up on a tray for a few days? That’ll be £10 please…. I just didn’t have it in me.

The service charges have to continue to be paid even once the resident has moved out, until it’s sold!

@mitogoshi they sell quite well apparently here in Bath too if sensibly priced - one reason being we don’t have loads of similar places.

When we were looking for somewhere for my mum we avoided m&s on purpose. We eventually found a one off independent owner and it's been the best thing for her. She now has friends on her doorstep, plays Scrabble, goes to lunch with them, sits on the leaseholders committee. Yes the service charge is more than a standard flat but they have wardens Mon to Fri 9-5. They all look out for each other. My mum downsized but her 1 bed has the same sq footage as her old 3 bed house. There is a lift and a guest suite they can pay minimum fee for.
All the flats sell very quickly.

I know a wealthy man in Canada (friend of my parents) whom has no children and has never married. He’s about 70/80 now and has decided to buy a posh, Canadian version of a McCarthy Stone apartment. For him, it’s perfect! No worries about what happens to it when he’s gone as he’s nobody to bequeath anything to. Very sad but his choice, I believe.

I think as a PP said, for a small subset of people, these places solve a multitude of issues compared to those which they create. It’s just a matter of whether or not you fall into that subset.

Again not MS but similar thing we recently had to sell a flat of a passed away relative and it’s taken FOUR years. Sold at a third of its previous value. Doesn’t really matter to us but it would be have been a nightmare if DAunt hadn’t actually died and needed ongoing care costs

The family doesn't pay surely? The estate does.

If your loved one has passed away, or needs nursing home care, resale can be very tricky and you still get charged fees until it sells (usually at a loss round here).

Live on a cruise ship !

@Clearinguptheclutter one reason my 85 year old FIL bought a nice bungalow recently in a good area and in very good order - thinks it will be way easier to sell if needs be quite quickly

Yes, because the apartment and development still need upkeep (insurance, maintenance, staffing etc). Relatives are not liable—the deceased's estate is. The charge will accumulate and be deducted at probate.

Tempting!

That’s the same as any flat with a service charge though.