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Elderly parents

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

35 replies

TaupeZebra · 23/11/2024 12:14

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!

OP posts:
TaupeZebra · 23/11/2024 14:22

Hivishero26 · 23/11/2024 14:11

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.

Is yours an M&S property? Rutherford house?

OP posts:
Schoolchoicesucks · 23/11/2024 14:36

Gosh, the £13k pa service charge is a kicker - a lot to come out of a pension each month.

The business model for these sounds great - for M&S. Less so for those who bought them/have inherited and looking to sell.

Living in one for 5, 10, 15 years - the facilities and activities and social set up is great - but it's a lot of money (presumably from downsized equity) handed over.

OP, keep an eye on what the auction property sells for. If you are racking up service/maintenance costs to be deducted from eventual sales price then reducing hard to get interest and property sold is the main thing.

I hope your relative was happy there and I don't think there is a price to put on somewhere that meets the needs - social, physical and mental - of an ageing community - better the money was spent in meeting those needs than held in bricks & mortar while the person had a miserable existence. But I do question whether M&S has the balance right.

Pandersmum · 23/11/2024 16:01

My mum downsized into a new M&S development when the family home was financially unviable for her after my father had passed away.

It was the best thing she ever did.

My parents were some of the ‘lucky’ ones who had purchased a nice family house in a nice area on one low to average salary in the late 1960’s. Fast forward to 2003 they were asset rich and cash poor. Both only had state pensions. They could afford to do very little - lived in cold house needing repair, no holidays, no nice lunches out etc. As they got older I did my best to support them both financially and in looking after the house/ garden, I paid for a couple of holidays for them etc but when my father passed, I was working and my own children came along I had to put them first and suggested my mum downsized. She was also very lonely and each winter struggled with a bad chest.

My siblings (I was the youngest) were horrified. Had I not heard what a bad investment they were? Etc etc. All 3 of them were comfortably off but none helped mum out with either their time or their money, but they were all eagerly awaiting their inheritance.

So with my full support she bought a new build M&S 1 bed apartment and had 8 very happy years there. The apartment was cheap to heat and the communal areas spotlessly clean with well maintained gardens. She was on the social committee, always celebrating new ‘M&S friends’ birthdays etc in the communal areas, had regular planned day trips out. The local farmer and fish trucks would visit regularly etc. Her life was simpler with no house to look after, busier with her social life and she was so much happier.

Most importantly, for the first time in her life she had money in the bank (from downsizing) and so had 2 or 3 overseas holidays with her hobby friends and could lunch out weekly without thinking about it. She was so much happier and less lonely. So yes she was spending the family inheritance but my view was it was her money to spend.

When she died, we sold the property easily, albeit for the same price that she had paid for it. Yes she had paid a monthly service charge and yes had she stayed in the family home we would have received more of an inheritance as the value of that would have appreciated, but ultimately my lovely Mum had 8 happier years in her old age than if she had not moved into a M&S property.

Years later, 2 of my 3 siblings still feel ‘cheated’ out of a chunk of their inheritance and we barely speak. They really were happy to see Mum struggle as long as she kept their inheritance nest egg warm and growing in value!
1 sibling accepted, seeing the significant improvement in mums health and happiness that moving to M&S was a good idea after all!

So OP if you have recently inherited the property, I would sell for a reduced price and just remember how lucky you are to have inherited something and remember that the person you have inherited from may have had a happier life living there!

Harassedevictee · 23/11/2024 16:25

@TaupeZebra the service charge is astronomical. The M&S rental price includes this, hence the hefty price.

Given there are new properties in the same development I think you will have to cut your losses. It’s the cost of paying the service charge vs amount you get for the flat.

Putting it on the market just before Christmas is not ideal. If you can I would suggest waiting until the new year then putting it on at offers over £225k or £249k. Stamp duty increases at £250,001 so that might be the threshold. Put it on right move but also with specialist sheltered housing estate agents.

Saxendi · 23/11/2024 22:43

There's a development near me with a one bed advertised at £260k,however looking at recently sold prices, the last one to be sold went for £135k,a significant drop, entirely agree the whole issue of retirement homes should be looked at seriously as the McCarthy&Stone model just seems to be about making as much money as possible for McCarthy& Stone.

olderbutwiser · 23/11/2024 23:04

The M&S flats in our town have not tanked in value - they are selling now for what they originally sold for when built in 2019. The last couple of two bed flats have sold for around £500,000; you could get a 3 bed house for that round here. So I think it depends on the catchment area. We are a naice se town with plenty of people with good pensions downsizing from family homes worth £800,000 plus.

Rainyblue · 23/11/2024 23:42

I think one of the issues is that if you inherit one of these properties but can’t sell it quickly, the service charges and Council Tax still need to be paid. This is supposed to come out of the estate but people have had issues with being pressured to pay it. Which understandably causes a lot of stress.

I don’t expect to inherit anything from my mum, her money is hers to spend. I would like to see her happy. I would be worried though about being liable for service charge bills that I couldn’t afford to pay.

Hivishero26 · 24/11/2024 21:56

@TaupeZebra Yes, its an M&S property , but I think they are misleading Executors on property values.

Like other posters I think the property was absolutely the right thing for my relative and I don’t expect anything from the sale .. BUT she was misled to a massive degree and we now have an incredible stress facing years of trying to sell the property through no fault of our own. It’s not something we signed up to. We believed we would be able to sell at say a £50k loss … but its now looking like a £150k loss after several years of struggle and stress and it may well eat i to her savings.

MichaelandKirk · 25/11/2024 12:21

I have some expereince of this. People often well into their 80's buy off plan or brand new and then either pass away or have to move into a care home over the next few years. It wont help the OP but NEVER buy brand new. NEVER! Parent rented and loved it there but then had to move into a care home. To be honest although she had owned her own home she couldnt have cared less whether she was renting or buying at her age. Renting has the SC included.

Many at parent's complex brought very late in life and got caught up with the brand new vibe but often the second hand market offers much much cheaper prices (if you really need to buy!) and people dont stay in them for years and years and some are very lightly used.

I know Gerrards Cross. They will be appealing to people who want to stay in the area hence the £££ as Gerrards X is very pricy housing wise and people selling their old house will have £100,000's to spend.

Northernlassie123 · 25/11/2024 21:13

TaupeZebra · 23/11/2024 12:57

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.

It is a lot to cough up ( would you actually HAVE to charge that?) but it’s stiil cheaper than a nice care home .

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