Retirement flat won't sell, wolves at the door - desperate

[jugglingeverything]

I have been trying to sell my mum's McCarthy Stone retirement flat for a year now. Only had about 8 viewings, changed EA. No joy. Have reduced the price several times. I have lots of debts of my own. I'm a single parent, ex pays nothing and have huge mortgage. Also have lots of bills to pay off from mum's care. REALLY REALLY need to sell this flat. Icing on cake is that the property management company are now threatening legal action as they say I owe £4K service charge for the last year. I've said I'll pay once sold but they are hounding me. They've offered a "monthly scheme" but I just don't have the funds - I can't meet my existing bills. My mortgage has been interest only for the last 6mths as couldn't afford it once ex stopped paying. Child maintenance service useless. If I cant get bank to agree to continue interest only I may end up loosing my own home. I work 37-48hrs a week. There is no way to get more money coming in.

I really wish my mum was here as she'd know what to do but I'm on my own now.

The only option I can see I have left is one of these quick buy schemes. I think its really wrong to be put in this position but what other options are there? I have reduced and reduced but you have to be 60+ to live there and I think this age group are twitched by brexit etc. Every time I reduce it means if I do end up using one of these schemes I will get even less.

I considered them before but felt I was being ripped off so persisted with EAs but have got nowhere. I can't help feeling I should be grateful I am getting anything. I should still be able to clear a lot of my debt which means I might be able to make my mortgage payments. But it still feels like a bad choice.

Advice please x

[FinallyHere]

Im afraid that this type of property dies tend to not hold its value. There tends to be an oversupply and new ones are soo much easier to buy because the builders can offer all sorts of inducements, including offering to buy your existing property. My advice would be to get whatever you can for it, right away.

Also check the small print about the service charge,n it will very likely have to be settled as part if the sale, but not before.

[wheresmyphone]

Can you get an appointment at Citizens Advice? They have financial specialists who hopefully can sit you down and talk through the options. They may also be able to negotiate on your behalf with mgt company etc the mgt fees. Good luck.

[Bombardier25966]

Are you the executor? If so the managing agent are entitled to chase the debt with you in that capacity, though that does not make you personally liable. Reply to them explaining that you noted their claim on the estate and will be in contact when it is being distributed.

Do not take anything from the estate until all debts are paid. If you do that then you may become personally liable due to maladministration.

Mccarthy and Stone are rip off merchants. Their properties do tend to be very nice, but their charges are ridiculous. As well as the service charge you need to check the lease for any resale fee, at some of their developments you are charged a percentage for the privilege of leaving. If you did go down the renting route then you'll need to ask their permission, and I'd expect them to charge a fee just to consider it.

Like others I would suggest you do whatever you can to get rid of it. Quick sale companies might be an option, but M&S may refuse to transfer the lease to an investor. How much is the property worth? Are there other assets in the estate?

[Dodie66]

I think Dumbledore is right. You are not liable for your Mums debts etc. You need legal advice

[Bombardier25966]

I need to write to the company so I will point that out to them and mention the financial ombudsman

They are not regulated by the FOS.

[JoJoSM2]

Have you listed the flat with a specialist agent? Using the local high street agent would be a mistake.

It’s best to list it with a specialist. They have their own advert network aimed at that age bracket who often don’t use the internet. Often, the management company can offer a re-sale service with the building manager showing potential buyers around the property- if they come across nice, that will be a massive selling point.

I would also add that if your mum had it from new, there’s likely to have been a massive drop in value. In my area, retirement flats sell for half (!) the price of the near identical new ones by the same developer.

I also wouldn’t concentrate on the 4K service charge as that’s par for the course. Retirement buildings tend to have a full-time on-site manager, lifts, decorated communal areas that get cleaned 1-2 a week, lounges, guest apartments, landscapes gardens, laundry facilities etc, emergency buttons around the flats, mobility scooter charging stations etc etc and people are happy to pay the service charge for all the services provided. You just need to use an appropriate agent who’s really clued in and able to sell the convenience.

[Angryosaurus]

Auction? It should go for its market value and you would have the cash in a month.

[Bombardier25966]

Auction? It should go for its market value and you would have the cash in a month.

Auction properties generally go for less than market value, otherwise they'd be sold via an EA. You also pay a hefty fee to the auctioneers.

That's not to say that it is a bad idea though, especially if you want it resolved quickly. Better to get something than keep accruing fees.

[Angryosaurus]

@Bombardier25966 I would disagree. Auction properties aren't sold by EA because for whatever reason they are/would be overvalued. An auction demonstrates what the true value is ie what someone pays for it

[ThroughThickAndThin01]

Auctions can produce great prices for the seller. Not sure whether they would for a bog standard retirement flat though.

[Angryosaurus]

I very much doubt you would get a great price. You would hopefully sell it though and get the cash quickly. With the quick buy firms I have heard they lower their offers just before exchange when it's often too late to back out. This can't happen at auction. You can also set a reserve price

[jugglingeverything]

Can anyone recommend any of the quick buy sites? I am happy to take the hit, its business after all and their risk. What worries me is all the posts I've seen about sneaky extra charges and so on. If anyone has used one with success please let me know x

[whiskyowl]

I think people are failing to understand the nature of these properties - they come with incredibly high service charges. McCarthy and Stone are at the top end of the market - the flat should be very nice indeed.

I would seek urgent legal advice as to what your actual responsibilities are here- it seems to me that you may be paying out now on bills that should actually be paid once the flat is sold. If money is tight, go to a CAB or to a pro-bono service at a local university with a law department.

[sall74]

Retirement apartments are notoriously difficult to sell, my late father bought one brand new in 2007 for £130k, he died in 2011.

The apartment was immaculate, actually better than new condition.

We spent 2 years trying to sell it, started with an asking price of £95k so WELL below what he paid for it, thinking that would get a very quick and easy sale, brought it down to £75k, still no interest what so ever.

Eventually put into auction where it sold for £38k! Minus the £6k we had spent on council tax, service charges and ground rent for the 2 years it was on the market!

If I'd known just how little it would be worth and how much stress and hassle I would have to go through trying to sell it (don't even get me started on management companies) I honestly would have found someone deserving of it and given it away to them as soon as my father died.

[JoJoSM2]

They don’t need to be that bad to sell. MIL lived in one for a few months until deciding that she wanted to live in her own house again. She had two offers within a week and completed quickly.

[user1471456357]

jugglingi work in this sector, does the company that manage it start with F?
You might be able to ask them to wait until it's sold before you pay any outstanding service charges.
I'm relatively new to posting on mumsnet, although I have read it for years. I have never pm'd on here but if someone can tell me how I'm happy to try to help you?

[user1471456357]

I mean I work in the retirement home sector, not the quick sale one.

[CiderwithBuda]

On the blue line where your posting name is if you look to the right there is a 'message poster' option.

[scrabbler3]

I'd be inclined to use a quick sale company and get rid of it/the debts. You sound very anxious, understandably. For the sake of your own wellbeing, take the hit on the price. Your mum would not want you to be suffering.

[user1471456357]

Thanks, cider, what are you planning now op?

[HaveAWeeNap]

How's it going, OP?

[InfiniteSheldon]

An update would be great.

[OrinocoDugong]

That service charge is astronomical - £77 per week when the old age pension is £122 per week is shocking. There's been stuff in the news lately about freeholder companies writing leasehold contracts for this kind of property that give them the right to double charges every 15/20 years - is this flat affected by this? You may be able to take legal action if the terms of the contract are unfair.

If that annual charge is upheld then honestly I don't think that the flat is really worth very much at all. The value of any asset is only the amount that someone would be willing to pay for it and if it's an unattractive deal then honestly no one is going to be willing to pay very much. I recommend cutting your losses and going with whatever pittance a quick-buy company will offer you.

[HaveAWeeNap]

Any update, OP?

[MessySurfaces]

Yes @scrabbler3 , what did you do? Thinking of you