Seeking advice - Looking to sell a 1 bed flat in a retirement home (Gerrards Cross)

[TaupeZebra]

Hello everyone,

To keep it brief: we’ve recently acquired ownership of a one-bedroom flat in a retirement living community for individuals aged 70 and above. The property is located in Rutherford House, a relatively new McCarthy & Stone development in Gerrards Cross.

The annual service charges amount to approximately £13,000, and comparable resale properties within the development are listed at around £275,000. We’re open to offers significantly below that price.

Our goal is to sell the flat, and we’re reaching out to see if anyone here might be interested or has experience with selling properties of this kind. Any advice, insights, or guidance would be greatly appreciated.

Thank you in advance!

Good luck. These are notoriously difficult to sell.

I think the government needs to look at the whole retirement home business model. These flats have huge service charges and they are hard to sell, it doesn't seem fair to me. Meanwhile we are crying out for good quality affordable retirement homes in the UK.

Couldn't agree more.

Absolutely. They have a reputation for being incredibly difficult to sell.

good luck op, hopefully a down sizer will snap it up.

they are the only ones planning for generation rent to “retire”. The housing benefit bill that will get paid to McCarthy and stone and the likes of, is going to be ludicrous.

Are you allowed to rent it out? That could be another option if selling proves hard.

otherwise you’re just going to have to make sure it’s the best one in terms of decor etc that’s on the market currently in that block.

In your position I would reduce the price to what you might at the moment consider a silly, ridiculously low price.

That's the only way you are likely to get any interest at all, bearing in mind the hefty service charges and well-recognised difficulty in selling these retirement homes.

Be realistic about your expectations - check Rightmove for previous actual sold prices to help you come to terms with the reality of the situation, and not be swayed by estate agents persuasive blether in their efforts to get your business.

I'd rather reduce now and sell as soon as possible, than it be languishing this time next year, or even longer, with several 'price adjustments' along the way, which is frequently the case.

I assume they're quite hard to rent. McCarthy for instance quotes £4500/month in rent for the 1 bed. They provide good services but that's still painfully quite a lot to cough up.

How low do you reckon? 200k? 150k?
The last one sold in March this year for 340k and the developer is asking for 400k for a new one. Insane

These are at the luxury end of the market and whilst they vary a bit, they tend to have a lot of facilities hence the high monthly charge, my friends's block is lovely but it was £££ to buy outright.

Any chance you can link to the development OP? Without being too outing, my parents live fairly close to GX and are looking to downsize and the equity they’d be left with would cover that service charge for many years, eye-watering though it is! They love GX as a place.

To add, they are late 70s.

@TaupeZebra 'The last one sold in March this year for 340k and the developer is asking for 400k for a new one. Insane'.

Was that the price sold by the developer when new, or re-sale? Unfortunately re-sale values of retirement flats are usually far below the initial sold price that came with all the glossy brochure sales chat when new.

My DB & I inherited my Dads flat when he died. Not McCarthy & Stone and the fees are much lower than yours. Our lease was on the short side too. We tried to sell without success and now rent it out. We have also extended the lease and bought a share of the freehold, so when we eventually try to sell it will be more attractive to buyers. Fortunately we have a lovely tenant, who is no trouble.
Flats in this area (not retirement) usually sell quickly, it is very frustrating

Sure.
https://www.mccarthyandstone.co.uk/retirement-properties-for-sale/rutherford-house-chalfont-st-peter/

Correction - the last one sold was for 370k. I am assuming it was a new unit.

Sell now whilst the price is good even if you have to reduce by £50k . I currently need to sell one purchased for £170k , now expected to go for £20k and no buyers to be seen . It looks as if the first few resales go for £20-£50k below asking and after a few years they tank. Gerrards cross is prime territory though so you may be lucky.

I've just had a look on Rightmove and Savills have a 1 bed retirement flat in the same block for auction, starting price £45,000.

Maybe auction might be something to consider if you want to sell it quickly?

Not a great comparison but here's a link to a not dissimilar 'luxury complex' retirement flat (though it's 2 bedrooms) in a similar upmarket area.

House Price History.

It sold for £269k in 2018, and sold this year for £200k.

That's just insane.

Love the look of the flat and complex! Will show it to my parents to see what they think. They’d need to sell their house but they’ve already had EA round for valuation who’ve said it will go quickly because it’s an ideal family home near good schools, off-street parking, solid build, gorgeous garden etc. This would be ideal downsize for them!

Yeah - I reckon that's just to get people interested in bidding and reserve is likely to be higher. Your point is taken though - seems like it's a horrible purchase. Seems like the only ones laughing are the developers.They sell high and then charge crazy service fees to keep the money tap running.

Its such a shame, they are great for those that can afford them, but the ongoing maintenance for beneficiaries is a deterrent. Such a pity as if only people realised that the £150k discount offsets quite a few years of ongoing maintenance. The price ‘correction’ is far more than the risk of not selling. M&S really need to do something, but why would they when they have guaranteed income for life !

Don’t believe any figures M&S give you .. their valuation of the flat was £150k when recent sales had all, been below £50k and an RCIS valuation was £20k. They wouldn’t even talk to me about why their valuation was so high and claimed to have no idea how long properties take to sell.

MIL is in one (M&S) - has been for about 9-10yrs now - LOVES it, there will be nothing much left to inherit once she does die, but worth every penny to the family for the communal life she has there and the lovely staff who look out for them.

She's always off on coach trips with someone from the complex, and a few of her old friends have joined her in there recently. She has family members round for Sunday lunch in the dining room and coffee upstairs in her flat after. She can host a little dinner party in her own flat if she wants to - but these days it's likely to be a nice takeaway as the kitchen is quite small.

Some residents have carers coming in a few times a day, so she knows she won't have to leave in the future just because she needs care.

Her own little dog died, as you can bring a dog in with you, but not replace it when it dies she dog sits for other residents.

She says it's the best decision she made. I think all the talk about resale value is a bit grabby TBH. Was the parent happy there? that's all that really matters, surely?