C4 Dispatches Undercover retirement McCarthy and Stone

Did anyone see the Channel 4 programme Dispatches last night. "Undercover Retirement". No matter it is being repeated tonight on 4seven at 8pm and again on 4seven Sunday at 11.05pm.

It was an expose on McCarthy & Stone Britain's biggest retirement homebuilder with 70% of the market.
They claim to have a "mother theory" where all their staff treat their customers like they would treat their own mother!

Based what I saw on the programme, they must really take advantage of their mothers!

During a 45 minute hard sell the sales advisor continually plugged their Part-Exchange scheme. The programme showed that going down the part-exchange route (in the undercover example) would cost £14,950 more, but selling privately would mean savings of £52,300. Combined this is over £67,000.

Add the £7,000 a year maintenance service charges and
McCarthy and Stone should be ashamed.

Churchill Retirement Living an McCarthy & Stone competitor, was set up by John McCarthy who also founded McCarthy and Stone!

If buying a retirement home pay attention to service charges and dont believe everything you are told. Take a younger member of the family with you.

Channel 4 Dispatches also recommend the following:"1. If you're considering a part exchange deal, get independent valuations of your family home from three local estate agents and surveyors.
2. Weigh up the part exchange offer with the average valuation of the local experts, but also take into account the costs of solicitors fees, estate agents fees and the cost of removals.
3. Use an independent solicitor to carry out the conveyancing of your purchase.
4. Make sure your solicitor points out anything in the lease that may pertain to what happens if you develop a mental illness.
5. Your solicitor should make you aware of who the landlord/freeholder is and who the management company is that runs the development. They should also inform you of what service charges you will have to pay when you move in, and whether they could rise in the future.
6. Ask whether there is an exit or transfer fee involved in the lease.
7. Find out whether there are any restrictions on who you can sell the property on to in the future.
8. You should be made aware of whether you are allowed to rent your property out and, if so, whether there are any charges involved in doing so.
9. Ask your solicitor to point out what contribution you will have to make to the sinking/contingency fund. Furthermore, you should be made aware of who manages the sinking fund.
10. Acquaint yourself with how to go about securing 'Right to Manage'. The Leasehold Advisory Service offers free advice on all leasehold matters."

Re: C4 Dispatches Undercover retirement McCarthy and Stone

I also saw the programme. One of our neighbour's house has recently been put on the market. We wondered why the price was so low, then we discovered McCarthy & Stone were dealing with the sale, because the old couple were moving to one of their flats in Oxfordshire.Its no surprise to me that this practice is happening, as its a licence to print money for the company concerned. Almost as bad as Equity Release schemes which are another bad investment.Buyer beware as they say.

Re: C4 Dispatches Undercover retirement McCarthy and Stone

The point is that elderly people are generally being taken advantage of by various companies because of their generally trusting nature.

I agree Equity Release is another bad idea as are Open Market Annuity purchases etc etc.

Some people need the protection provided by the LAW
- it is not just hard luck, buyer beware!

Re: C4 Dispatches Undercover retirement McCarthy and Stone

McCarthy and Stone were featured in the Mail On Sunday (28 October 2012) where a couple were "financial prisoners" because they has been unable to sell their one-bedroom McCarthy and Stone retirement flat in Church Stretton Shropshire for five years, despite dropping the asking price to 46% less than they oringinally paid for it 7 years ago.

Service charges and council tax on their flay mounted to more than £8,000 a year.

The piece showed that McCarthy and Stone flats had plunged in price in 8 out of nine developments looked at from between 15% in 2 years in Worthing to 28% in 4 years in Uckfield and 27% in 5 years in Stevenage.

Read the full article here

Re: C4 Dispatches Undercover retirement McCarthy and Stone

Anyone who missed this its on YOUTUBE here

Re: C4 Dispatches Undercover retirement McCarthy and Stone

Elbee - I have just noticed your thread - do you speak from experience also - I do.
I would advise anyone 'not to buy' into a retirement home - unless, you have 'plenty' of money to waste. I wish now, I had rented a retirement apartment. You are correct, the value of the flats drops so low. If someone passes on, the relative must continue to pay the service charge until the flat is sold which can take years. The complex is built so quickly that a lot of problems occur - usually 'after' the two year guarantee...which means all repairs are down to the owners. We have had leaks galore here - every flat. One so major we had to have extensive work to the communal area which fortunately, was covered by insurance. The house manager needs to be caring, but, some are 'bullies' and 'divide and rule' takes place. I am 'stuck' in a rut here, will never be able to move...I could fill a book on my experiences...

Re: C4 Dispatches Undercover retirement McCarthy and Stone

Sorry to hear of your experiences PatsCG

Let's hope this acts as a warning to anyone even considering buying one.

I don't have any personal experience of living in a retirement home and hope I never will.
I just know about various matters regarding new homes.

Re: C4 Dispatches Undercover retirement McCarthy and Stone

Thanks for your response, I was totally naive and once viewed - you have no time to think, constant calls.. But, I didn't need persuading, I was desperate to move due to ill health. How I wish now, I had known someone who could have told me what to expect, because to say this has been a shock is putting it mildly.
Thanks again - I'm happy you raised the issue, it may be of help to someone...

Re: C4 Dispatches Undercover retirement McCarthy and Stone

Other factors in no particular order...


You also have to consider your furniture etc.

Most of the pieces will not fit into a one or two bedroom apartment?

If you have no other option I would suggest that you measure the floor area (Their figures are not always accurate) and check which of your favourite pieces will go into the space available.

You also have to factor in door openings,radiators, and windows etc.

You may also have to purchase what I call 'Apartment style furniture'

Some people have difficulty downsizing and the charity shops etc may not accept some items of furniture if they do not have a 'Fire Tag' attached

If relatives are not available to help you may have to pay out to have the house cleared of all the stuff you cannot take with you.

The flats generally are very comfortable and thousands of people are living within such complexes.

The overheads are more expensive but you have the protection of a 24hr monitoring service and in most cases a House manager will be on duty during the day.

The House Manager may also live in some of the larger buildings.

All the outside maintenance and all the supplied services to the communal areas are covered by the maintenance contract.

Some residents have revolted against the Service Providers and taken over themselves.This may save some money but you will need other residents to help and they by virtue of age are not always available.

There is a good community spirit in most complexes and generally speaking they attract people who are in a position to pay the charges.

If you do not have reasonable savings or other assets this type of lifestyle is not suitable.

It is best to sell your house without accepting a part exchange.

It may be difficult to sell your flat if your circumstances change - all charges will continue even if it is vacant.

You or your relatives may not get back what you paid for it.

More and more people are adapting their houses to be able to live downstairs and continue to live in their own house for as long as possible.

There is no easy solution as we all have different circumstances
.

Re: C4 Dispatches Undercover retirement McCarthy and Stone

Michael,
Thankyou for the above post - as you say it is 'best' to have plenty of money in savings to afford the charges. This is absolutely necessary. You also say correctly, some managers live-in. If they do, the cost of their apartment is down to the owners as well as the council tax bill for them. I consider this outrageous, so just as well our manager is 'not' a live-in....